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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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Navy Secretary John Phelan Is Leaving the Pentagon and the Trump Administration

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Navy Secretary John Phelan Is Leaving the Pentagon and the Trump Administration

Navy Secretary John Phelan was fired on Wednesday after months of infighting with senior Pentagon leaders and disagreements over how to revive the Navy’s struggling shipbuilding program.

Mr. Phelan is leaving the Pentagon and the Trump administration effective immediately, wrote Sean Parnell, the Pentagon’s chief spokesman, in a terse statement.

In his role leading the Navy, Mr. Phelan had championed the “Golden Fleet,” a major investment in new ships including a “Trump-class” battleship. But Mr. Phelan’s leadership was marred by feuds with senior leaders in the Pentagon, including Defense Secretary Pete Hegseth and Deputy Defense Secretary Stephen Feinberg, Pentagon and congressional officials said.

Mr. Phelan is the first service secretary to leave the administration, though he is the second one to clash with the defense secretary. Mr. Hegseth also has butted heads with Army Secretary Daniel P. Driscoll over promotions and a host of other issues. Mr. Hegseth fired the Army’s chief of staff, Gen. Randy George, earlier this month.

The Navy secretary has no role overseeing deployed forces, and Mr. Phelan’s firing is not likely to have significant implications for the conduct of the Iran war or U.S. Navy operations to blockade Iranian ports or open the Strait of Hormuz. As the Navy’s top civilian leader, his main responsibility is to oversee the building of the future naval and Marine Corps force.

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But the tumult could make it harder for the Navy to replenish its stock of Tomahawk missiles and high-end air defense systems, which have been in heavy use in Iran.

Tensions had been simmering for months between Mr. Phelan and his two bosses — Mr. Hegseth and Mr. Feinberg — over management style, personnel issues and other matters.

Mr. Feinberg, in particular, had grown increasingly dissatisfied with Mr. Phelan’s handling of the Navy’s major new shipbuilding initiative, and had been siphoning off responsibility for the project from him, said the congressional official, who spoke on the condition of anonymity to discuss personnel matters.

Mr. Phelan, a White House appointee, also had a contentious relationship with his deputy, Under Secretary Hung Cao, who is more aligned with Mr. Hegseth, especially on some of the social and cultural battles that have defined the defense secretary’s tenure, the officials said.

A senior administration official said that Mr. Hegseth informed Mr. Phelan before the Pentagon’s official announcement that he and President Trump had decided that the Navy needed new leadership.

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A spokeswoman for Mr. Phelan referred all questions on Wednesday evening to the Defense Department.

Last fall, Mr. Hegseth fired Mr. Phelan’s chief of staff, Jon Harrison, who had clashed with senior officials throughout the Pentagon. The unusual move highlighted the broader tensions between Mr. Hegseth and Mr. Phelan.

Still, the timing of Mr. Phelan’s firing caught some Pentagon and congressional officials off guard. On Wednesday, Mr. Phelan was making the rounds on Capitol Hill, talking to senators about his upcoming annual hearing with lawmakers to discuss the Navy’s budget request and other priorities.

“Secretary Phelan’s abrupt dismissal is troubling,” Senator Jack Reed of Rhode Island, the top Democrat on the Armed Services Committee, said in a statement Wednesday night. “In the midst of President Trump’s war of choice in Iran, at a moment when our naval forces are stretched thin across multiple theaters, this kind of disruption at the top sends the wrong signal to our sailors and Marines, to our allies, and to our adversaries.”

Mr. Phelan also had a close relationship with Mr. Trump. In December, Mr. Phelan appeared alongside Mr. Trump at his Mar-a-Lago resort to announce the “Golden Fleet” and the new class of battleships bearing Mr. Trump’s name.

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“John Phelan is one of the most successful businessmen in the country — in our country,” Mr. Trump said. “He’s been a tremendous success.”

Before joining the Trump administration, Mr. Phelan ran a private investment fund based in Florida.

“He’s taken probably the largest salary cut in history, but he wanted to do it,” Mr. Trump said at the December press conference. “He wants to rebuild our Navy. And you needed that kind of a brain to do it properly.”

But Mr. Trump’s effusive praise masked deeper tensions with Mr. Phelan’s Pentagon bosses.

Bryan Clark, a naval analyst at the Hudson Institute, said that Mr. Phelan was “driving the Navy in a different direction” than what Mr. Hegseth and Mr. Feinberg wanted.

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“He was championing initiatives like the battleship and frigate that don’t align with where the D.O.W. leadership is taking the military, which is toward submarines, stealth aircraft, unmanned systems and software-driven capabilities like electronic warfare and cyber,” Mr. Clark said in an email, using the abbreviation for Department of War, as the administration calls the Defense Department.

Mr. Phelan also clashed with Mr. Hegseth over personnel issues in the Navy and Marine Corps, a former senior military official said. Mr. Hegseth has directed service secretaries to scrub the social media accounts of general- and admiral-level promotion candidates to ensure they are not deemed too “woke” by Mr. Hegseth’s standards, the official said.

Maggie Haberman and Eric Schmitt contributed reporting.

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Manhattan DA’s office employee charged with sexual abuse after alleged incident on Queens subway

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Manhattan DA’s office employee charged with sexual abuse after alleged incident on Queens subway

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An analyst with the Manhattan District Attorney’s Office was arrested Tuesday on allegations that he sexually abused a woman while off duty, police told Fox News Digital Wednesday. 

Tauhid Dewan, 28, is accused of inappropriately touching a 40-year-old woman’s private area during a late-afternoon rush-hour subway ride in Queens, according to local outlet PIX11. 

The victim was reportedly a random woman, the outlet added, citing sources who said she and the suspect were strangers. 

A spokeswoman for the office told Fox News Digital that the staffer has since been suspended.

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MAN ARRESTED IN NYC STRANGULATION DEATH OF WOMAN FOUND OUTSIDE TIMES SQUARE HOTEL

Tauhid Dewan, 28, was arrested in New York City Tuesday following allegations that the Manhattan DA staffer innapropriately touched a woman during a subway ride (LinkedIn)

According to the New York Police Department, Dewan was arrested around 5 p.m., possibly after returning from work.

PIX11 added that the arrest occurred minutes after the incident, which allegedly took place on a No. 7 train near the Junction Boulevard station.

He was subsequently arrested by the NYPD Transit Bureau and is facing multiple charges, including forcible touching on a bus or train, third-degree sexual abuse, and second-degree harassment involving physical contact.

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He was also charged with acting in a manner injurious to a child under the age of 17, suggesting a minor may have been nearby and either witnessed the alleged conduct or was placed at risk by it.

ERIC SWALWELL FACES MANHATTAN SEX ASSAULT PROBE AFTER ENDING CALIFORNIA GOVERNOR CAMPAIGN AMID ALLEGATIONS

Tauhid Dewan is an employee of the Manhattan District Attorney’s Office, which is led by DA Alvin Bragg. (Spencer Platt/Getty Images)

Law enforcement sources said Dewan has no prior arrests, local outlets reported.

According to city records, Dewan has worked at the Manhattan District Attorney’s Office as a senior investigative analyst for nearly four years, since July 10, 2022.

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People board a train at a subway station in New York City on Aug. 1, 2025. (Gary Hershorn/Getty Images)

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His arraignment in Queens Criminal Court was scheduled for Wednesday, according to state records. 

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As primary election nears, top candidates for California governor debate tonight

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As primary election nears, top candidates for California governor debate tonight

With the California governor’s race quickly approaching, six candidates will face off Wednesday evening in the first debate since former Rep. Eric Swalwell dropped out of the race in the aftermath of sexual assault and misconduct allegations.

The debate takes place at a critical moment in the turbulent contest to replace termed-out Gov. Gavin Newsom. Ballots will start landing in Californians’ mailboxes in less than two weeks, and voters are split by a crowded field of eight prominent candidates. The debate also takes place after former state Controller Betty Yee ended her campaign because of a lack of resources and support in the polls.

Two Republicans — Riverside County Sheriff Chad Bianco and conservative commentator Steve Hilton — and four Democrats — billionaire Tom Steyer, former Biden administration Secretary Xavier Becerra, former Orange County Rep. Katie Porter and San Jose Mayor Matt Mahan — will take the stage at Nexstar’s KRON4 studios in San Francisco. Former Los Angeles Mayor Antonio Villaraigosa and state Supt. of Public Instruction Tony Thurmond, both Democrats, were not invited to participate because of their low polling numbers.

As the candidates strive to distinguish themselves in a crowded field, the debate could include fiery exchanges about the role of money in politics and potential heightened attacks on Becerra, who has surged in the polls since Swalwell dropped out. With the debate taking place on Earth Day, environmental issues are also likely to be raised.

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The Wednesday night gathering is the first televised debate in the gubernatorial contest since early February. Last month, USC canceled a debate hours before it was set to begin over mounting criticism that its criteria excluded all major candidates of color.

The 7 p.m. debate is hosted by Nexstar and will be moderated by KTXL FOX40 anchor Nikki Laurenzo and KTLA anchor Frank Buckley. It can be viewed on KRON4 (San Francisco), KTLA5 (Los Angeles), KSWB/KUSI (San Diego), KTXL (Sacramento), KGET (Bakersfield) and KSEE (Fresno). NewsNation will also air the debate.

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