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Supreme Court may free Catholic charities from paying state unemployment taxes for their employees

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Supreme Court may free Catholic charities from paying state unemployment taxes for their employees

The Supreme Court voted Friday to hear a potentially far-reaching claim of religious freedom and decide whether church-sponsored charities, programs and businesses may refuse to pay state unemployment taxes for their employees.

All states exempt churches and church programs from the taxes if they “operate primarily for religious purposes.” But they usually require affiliated schools, colleges, hospitals and other businesses to pay unemployment taxes if they are open to all and do not offer worship services or religious training.

In a case from Wisconsin, the justices will reconsider that approach and decide whether instead to require the states to defer to religious authorities. The appeal that will be heard argues the government may not “second-guess the religious decisions” of church authorities who seek an exemption.

The dispute began with Black River Industries, Barron County Developmental Services and two other small nonprofit corporations that are funded by state or federal grants to provide services for people with developmental disabilities.

They are now controlled by Catholic charities that sued to seek an exemption from the unemployment taxes.

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Their lawyers argued those charitable programs are motivated by “sincerely held religious beliefs and to carry out the religious mission” of the church.

Therefore, they said, it violates the Constitution to require Catholic charities to pay unemployment taxes, noting the church has its own program of unemployment coverage.

The Wisconsin Supreme Court disagreed in a 4-3 ruling and upheld the state taxes. It said the four programs were “charitable” and “educational,” but not primarily religious.

Lawyers for Becket Fund for Religious Liberty appealed and urged the court to overturn the Wisconsin ruling.

The case comes before a high court that has repeatedly ruled in favor of religious claims over the last decade.

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In one line of cases, the justices said churches and religious claimants are entitled to equal state benefits, including grants to pay for playgrounds at a church school or tuition grants for parents to send children to religious schools.

In another line of cases, they ruled religious organizations are freed from government regulation of their employees.

Four years ago, for example, they ruled that two Catholic school teachers in Los Angeles who were fired could not sue alleging they were victims of discrimination.

A year later, the court ruled that as a matter of religious freedom, Catholic Social Services had a right to participate in a city-sponsored foster care program in Philadelphia and receive payments for doing so, even though it refused to work with same-sex couples as required by the city.

The court also ruled that private businesses such as the Hobby Lobby stores and church-sponsored entities had a religious liberty right to refuse to provide contraceptive coverage for their employees as required by federal law.

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In the Wisconsin case, a group of religious liberty scholars urged the court to rule the government must “defer” to church authorities in matters involving their organizations.

“This case involves severe governmental interference with religious liberty that strikes at the heart of the 1st Amendment’s most basic guarantees,” they wrote in a friend-of-the-court brief. They said “courts must defer to how the religious group defines its message.”

The Catholic Conference of Illinois was among the church groups that urged the court to hear the case. Its brief noted that its bishops speak for 949 parishes, 46 Catholic hospitals, 21 healthcare centers, 11 colleges and universities, 424 schools and 527 Catholic cemeteries.

The court is likely to schedule arguments in the Wisconsin case in March or April and issue a ruling by the end of June.

“Wisconsin is trying to make sure no good deed goes unpunished,” said Eric Rassbach, vice president and senior counsel at Becket. “Penalizing Catholic Charities for serving Catholics and non-Catholics alike is ridiculous and wrong. We are confident the Supreme Court will reject the Wisconsin Supreme Court’s absurd ruling.”

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Video: Federal Agent Fatally Shoots Woman in Minneapolis

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Video: Federal Agent Fatally Shoots Woman in Minneapolis

new video loaded: Federal Agent Fatally Shoots Woman in Minneapolis

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Federal Agent Fatally Shoots Woman in Minneapolis

Federal officials claimed that the 37-year-old woman was trying to kill agents with a car in Minneapolis, while city and state officials disputed their account.

“No! No! Shame — shame! What did you do?” “It was an act of domestic terrorism, what happened. It was — our ICE officers were out in an enforcement action. They got stuck in the snow because of the adverse weather that is in Minneapolis. They were attempting to push out their vehicle, and a woman attacked them and those surrounding them, and attempted to run them over and ram them with her vehicle. An officer of ours acted quickly and defensively shot to protect himself and the people around him.” “We’ve been warning for weeks that the Trump administration’s dangerous, sensationalized operations are a threat to our public safety.” “They are already trying to spin this as an action of self-defense. Having seen the video of myself, I want to tell everybody directly: That is bullshit. This was an agent recklessly using power that resulted in somebody dying — getting killed.” “Get out of the fucking car.” “No! No! Shame! [gunshots] Shame! Oh, my fucking God. What the fuck? What the fuck? You just fucking — what the fuck did you do?” “There is nothing to indicate that this woman was the target of any law enforcement investigation or activity. This woman was in her car, and it appears, then blocking the street because of the presence of federal law enforcement, which is obviously something that has been happening not just in Minneapolis, but around the country.”

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Federal officials claimed that the 37-year-old woman was trying to kill agents with a car in Minneapolis, while city and state officials disputed their account.

By Jamie Leventhal and Devon Lum

January 7, 2026

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Trump greenlights Russian sanctions bill, paving way for 500% tariff on countries supporting Moscow: Graham

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Trump greenlights Russian sanctions bill, paving way for 500% tariff on countries supporting Moscow: Graham

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Sen. Lindsey Graham announced Wednesday that President Donald Trump has approved a Russian sanctions bill designed to pressure Moscow to end its war with Ukraine.

Graham revealed the development in a post on X, describing it as a pivotal shift in the U.S. approach to the Russia-Ukraine conflict. 

“After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others,” Graham said. 

“This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent.”

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TRUMP TOUTS ‘TREMENDOUS PROGRESS’ BUT SAYS HE’LL MEET PUTIN AND ZELENSKYY ‘ONLY WHEN’ PEACE DEAL IS FINAL

Sen. Lindsey Graham, R-S.C., speaks during a news conference at the U.S. Capitol July 31, 2024, in Washington, D.C. (Kent Nishimura/Getty Images)

According to the Sanctioning Russia Act of 2025, the bipartisan legislation is designed to grant Trump sweeping, almost unprecedented, authority to economically isolate Russia and penalize major global economies that continue to trade with Moscow and finance its war against Ukraine.

Most notably, the bill would require the United States to impose a 500% tariff on all goods imported from any country that continues to purchase Russian oil, petroleum products or uranium. The measure would effectively squeeze Russia financially while deterring foreign governments from undermining U.S. sanctions.

TRUMP CASTS MADURO’S OUSTER AS ‘SMART’ MOVE AS RUSSIA, CHINA ENTER THE FRAY

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President Donald Trump speaks during a meeting at the White House Oct. 14, 2025, in Washington, D.C. (Kevin Dietsch/Getty Images)

“This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine,” Graham said.

“This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine.”

Graham said voting could take place as early as next week and that he is looking forward to a strong bipartisan vote.

US MILITARY SEIZES TWO SANCTIONED TANKERS IN ATLANTIC OCEAN

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The vessel tanker Bella 1 was spotted in Singapore Strait after U.S. officials say the U.S. Coast Guard pursued an oil tanker in international waters near Venezuela. (Hakon Rimmereid/via Reuters)

The move on the Russian sanctions bill follows another sharp escalation in America’s clampdown on Moscow. Earlier Wednesday, U.S. forces reportedly seized an oil tanker attempting to transport sanctioned Venezuelan oil to Russia.

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Graham publicly celebrated the seizure in another post on X, describing it as part of a broader winning streak of U.S. intervention aimed at Venezuela and Cuba. 

In the post, he also took aim at critics such as Sen. Rand Paul, who has opposed the bill, arguing that it would damage America’s trade relations with much of the world.

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Fox News Digital reached out to the White House for comment.

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ICE officer kills a Minneapolis driver in a deadly start to Trump’s latest immigration operation

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ICE officer kills a Minneapolis driver in a deadly start to Trump’s latest immigration operation

An Immigration and Customs Enforcement officer shot and killed a Minneapolis driver on Wednesday during the Trump administration’s latest crackdown on a major American city — a shooting that federal officials said was an act of self-defense but that the mayor described as reckless and unnecessary.

The 37-year-old woman was shot in front of a family member during a traffic stop in a snowy residential neighborhood south of downtown Minneapolis, just a few blocks from some of the oldest immigrant markets and about a mile from where George Floyd was killed by police in 2020. Her killing quickly drew a crowd of hundreds of angry protesters.

Homeland Security Secretary Kristi Noem, while visiting Texas, described the incident as an “act of domestic terrorism” carried out against ICE officers by a woman who “attempted to run them over and rammed them with her vehicle. An officer of ours acted quickly and defensively, shot, to protect himself and the people around him.”

Emergency medical technicians carry a person on a stretcher at the scene of a shooting in Minneapolis on Wednesday.

(Ellen Schmidt / Associated Press)

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But Minneapolis Mayor Jacob Frey blasted that characterization as “garbage” and criticized the federal deployment of more than 2,000 officers to the Twin Cities of Minneapolis and St. Paul as part of the immigration crackdown.

“What they are doing is not to provide safety in America. What they are doing is causing chaos and distrust,” Frey said, calling on the immigration agents to leave. “They’re ripping families apart. They’re sowing chaos on our streets, and in this case, quite literally killing people.

“They are already trying to spin this as an action of self-defense. Having seen the video myself, I wanna tell everybody directly, that is bullshit,” the mayor said.

Frey said he had a message for ICE: “Get the f— out of Minneapolis.”

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Police tape surrounds a vehicle

Police tape surrounds a vehicle believed to be involved in a shooting by an ICE agent on Wednesday.

(Stephen Maturen / Getty Images)

A shooting caught on video

Videos taken by bystanders with different vantage points and posted to social media show an officer approaching an SUV stopped across the middle of the road, demanding the driver open the door and grabbing the handle. The Honda Pilot begins to pull forward, and a different ICE officer standing in front of the vehicle pulls his weapon and immediately fires at least two shots into the vehicle at close range, jumping back as the vehicle moves toward him.

It was not clear from the videos whether the vehicle made contact with the officer. The SUV then sped into two cars parked on a curb nearby before crashing to a stop. Witnesses screamed obscenities, expressing shock at what they’d seen.

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After the shooting, emergency medical technicians tried to administer aid to the woman.

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“She was driving away and they killed her,” said resident Lynette Reini-Grandell, who was outdoors recording video on her phone.

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The shooting marked a dramatic escalation of the latest in a series of immigration enforcement operations in major cities under the Trump administration. The death of the Minneapolis driver, whose name wasn’t immediately released, was at least the fifth linked to immigration crackdowns.

The Twin Cities have been on edge since DHS announced Tuesday that it had launched the operation, which is at least partly tied to allegations of fraud involving Somali residents. Noem confirmed Wednesday that DHS had deployed more than 2,000 officers to the area and said they had already made “hundreds and hundreds” of arrests.

Protestors react after being hit with chemical spray

Protesters react after being hit with chemical spray at the scene of a shooting in Minneapolis.

(Alex Kormann / Minnesota Star Tribune via AP)

A large throng of protesters gathered at the scene after the shooting, where they vented their anger at the local and federal officers who were there, including Gregory Bovino, a senior U.S. Customs and Border Patrol official who has been the face of crackdowns in Los Angeles, Chicago and elsewhere.

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In a scene that hearkened back to the Los Angeles and Chicago crackdowns, bystanders heckled the officers, chanting “Shame! Shame! Shame!” and “ICE out of Minnesota,” and blew whistles that have become ubiquitous during the operations.

Shootings involving drivers during immigration actions have been an issue since the raids began in Southern California.

In August, masked U.S. Customs and Border Protection agents in San Bernardino opened fire on a truck they had stopped on a street. A video showed an agent demanding the driver roll down his window. When he refused, an agent shattered the window, the truck drove off and gunfire rang out.

When the driver got home, the family reported the incident to police. Federal authorities alleged an agent had been injured when the driver tried to “run them down.” But witnesses and video disputed some aspects of the official account.

In October, a well-known TikTok figure was shot by an agent during a standoff in Los Angeles. The U.S. attorney said the man rammed his vehicle into the law enforcement vehicles in front of and behind him, “spun the tires, spewing smoke and debris into the air, causing the car to fishtail and causing agents to worry for their safety.” But videos showed a much more complicated view of the situation. A federal judge recently dismissed the case against the driver, finding that he had been denied access to counsel while in immigration detention.

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Governor calls for calm

In Minnesota on Wednesday, Gov. Tim Walz said he was prepared to deploy the National Guard if necessary. He said a family member of the driver was there to witness the killing, which he described as “predictable” and “avoidable.” He also said that, like many, he was outraged by the shooting but called on people to keep protests peaceful.

“They want a show. We can’t give it to them. We cannot,” the governor said during a news conference. “If you protest and express your 1st Amendment rights, please do so peacefully, as you always do. We can’t give them what they want.”

Minneapolis Police Chief Brian O’Hara briefly described the shooting to reporters but, unlike federal officials, gave no indication that the driver was trying to harm anyone. He said she had been shot in the head.

“This woman was in her vehicle and was blocking the roadway on Portland Avenue. … At some point a federal law enforcement officer approached her on foot and the vehicle began to drive off,” the chief said. “At least two shots were fired. The vehicle then crashed on the side of the roadway.”

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There were calls on social media to prosecute the officer who shot the driver. Commissioner Bob Jacobson of the Minnesota Department of Public Safety said state authorities would investigate the shooting with federal authorities.

“Keep in mind that this is an investigation that is also in its infancy. So any speculation about what has happened would be just that,” Jacobson told reporters.

The shooting happened in the district of Democratic Rep. Ilhan Omar, who called it “state violence,” not law enforcement.

For nearly a year, migrant rights advocates and neighborhood activists across the Twin Cities have been preparing to mobilize in the event of an immigration enforcement surge. From houses of worship to mobile home parks, they have set up active online networks, scanned license plates for possible federal vehicles and bought whistles and other noise-making devices to alert neighborhoods of any enforcement presence.

Sullivan and Dell’Orto write for the Associated Press. Dell’Orto reported from St. Paul, Minn. AP writers Steve Karnowski in Minneapolis, Ed White in Detroit, Valerie Gonzalez in Brownsville, Texas, and Mark Vancleave in Las Vegas and Times staff contributed to this report.

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