In Tilton v. Richardson, 1970, the U.S. Supreme Court ruled on a case concerning federal funding to religiously affiliated educational institutions. The plaintiffs argued that providing construction grants to such colleges and universities violated the Establishment Clause of the First Amendment which prohibits government establishment of religion. However, in an 8-1 decision, the court held that these grants did not violate this clause as they were part of a larger secular program aimed at assisting higher education facilities regardless of their affiliations or lack thereof with any religious body. The funds provided could only be used for buildings intended for non-religious use and thus did not promote any particular faith or belief system over another one; rather it was seen as neutral assistance by the state towards all forms of higher learning institutions including those with some form of religious affiliation.

In the dissenting opinion for Tilton v. Richardson, Justice William O. Douglas argued that providing federal funds to religiously affiliated colleges and universities violated the Establishment Clause of the First Amendment. He contended that these institutions were inherently religious in nature and thus any financial aid would inevitably support their religious activities, regardless of whether it was intended for secular purposes such as constructing buildings or improving facilities. Furthermore, he believed there was no effective way to ensure that federally funded facilities would not be used for religious instruction or worship in future years after government restrictions expired. Therefore, he concluded this form of state assistance constituted an unconstitutional endorsement and promotion of religion by the government.