The U.S. Supreme Court case Board of Education of Kiryas Joel Village School District v. Louis Grumet et al., 1993, revolved around the constitutionality of a New York law that allowed a religious community to form its own school district. The Satmar Hasidic Jewish community in Kiryas Joel had established their own public school district for disabled children who couldn't be adequately served by the regular education system due to religious reasons. However, this was challenged as violating the Establishment Clause of the First Amendment which prohibits government from favoring one religion over another or endorsing religion over non-religion. In a 6-3 decision, the court ruled against Kiryas Joel Village School District stating that it violated constitutional principles separating church and state because it singled out a particular religious group for special treatment under state law - thus breaching neutrality towards religions.

In the dissenting opinion for Board of Education of Kiryas Joel Village School District v. Louis Grumet et al., Justice Scalia argued that the creation of a school district to accommodate disabled children in an isolated religious community did not violate the Establishment Clause. He contended that this was a permissible accommodation, rather than an endorsement or advancement, of religion by government. The majority's interpretation, he believed, would lead to absurd results and could potentially invalidate many existing accommodations for religious groups across America. Furthermore, he disagreed with their view that neutrality towards religion required treating it as though it does not exist; instead asserting that true neutrality should involve acknowledging its existence and making reasonable accommodations where necessary without favoritism or promotion.