The County of Allegheny v. American Civil Liberties Union, Greater Pittsburgh Chapter case in 1988 revolved around the issue of religious displays on public property and whether they violated the Establishment Clause of the First Amendment. The Supreme Court ruled that a nativity scene displayed inside a courthouse was unconstitutional as it endorsed Christianity, thus violating separation between church and state. However, an outdoor menorah display next to a Christmas tree and sign saluting liberty was deemed constitutional because it did not appear to endorse or favor any particular religion over another but rather celebrated both the holiday season and national diversity.

In the dissenting opinion for County of Allegheny et al. v. American Civil Liberties Union, Greater Pittsburgh Chapter, et al., Justice Kennedy argued that the majority's decision to prohibit religious displays in public spaces was an overly broad interpretation of the Establishment Clause and infringed upon free speech rights. He contended that such a ruling could lead to unnecessary censorship of religious expression in public life and would not necessarily promote neutrality towards religion as intended by the Constitution. Instead, he suggested that government actions should only be considered unconstitutional if they coerced individuals into participating or supporting a particular religion against their will or gave preferential treatment to one faith over another.