GRAND RAPIDS, Mich. (Michigan News Source) – Bethany Christian Services, a Grand Rapids- based nonprofit that has provided refugee resettlement services for over 60 years, is fighting a battle with the state of Michigan. The organization recently filed a lawsuit against the state, alleging discrimination after being denied critical funding due to its religious-based hiring practices.

The lawsuit argues that the state’s decision violates Bethany’s constitutional right to religious freedom and threatens to disrupt essential services to vulnerable refugee communities across Michigan.

A history of service.

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Bethany Christian Services has been a key player in refugee resettlement since 1962, partnering with the state since 1981 to provide critical support to unaccompanied minors and other refugees. However, this long-standing partnership is now at risk because of the state denying refugee-resettlement services contracts to serve unaccompanied refugee minors, including youth from Afghanistan, Haiti, Cuba, and Ukraine.

In late 2023, Michigan’s Office of Global Michigan (OGM) took issue with Bethany’s practice of requiring employees to affirm its statement of faith. This requirement has been part of Bethany’s identity, allowing the organization to maintain its Christian mission by employing staff who share its values.

OGM’s concerns about this led to the denial of grant funding for Bethany in early 2024, marking the first time the state has refused to contract with the nonprofit. The move sparked frustration and distress within Bethany, prompting the organization to file a federal lawsuit in September 2024 against Michigan’s Department of Labor and Economic Opportunity and OGM. Bethany argues that the state’s actions amount to religious discrimination, infringing on its First Amendment rights.

The heart of the lawsuit: religious freedom vs. state values.

At the core of Bethany’s lawsuit is a debate over religious freedom and state-imposed hiring practices. Bethany’s lawsuit asserts that federal law has long upheld the rights of faith-based organizations to hire staff who align with their religious mission.

In the lawsuit, Nhung Hurst, General Counsel for Bethany Christian Services says, “Federal law is clear, and the courts have repeatedly affirmed that faith-based 501(c)3 nonprofit organizations, like ours, can hire staff and select leaders who share the organization’s faith mission. Federal law affirms that Muslim nonprofits can hire Muslims; Jewish nonprofits can hire people of Jewish faith; and Christian nonprofits can hire Christians.”

The attorney goes on to say, “For 50 years, this has been a long-standing American civil right that has never been controversial. We are disappointed that the state of Michigan would engage in religious discrimination, but we are confident that the courts will intervene and correct this injustice so we can continue serving men, women, and children across the state. Bethany remains deeply committed to serving vulnerable children and families, ensuring they have the support they need to thrive, even as we work to protect our legal rights”

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However, the state of Michigan contends that Bethany’s hiring practices to exclude individuals who do not align with its Christian beliefs is incompatible with the state’s values which includes DEI. In the grant documents between the state and the organization, it says “Monitoring may also include a review of the contractor’s non-discrimination and diversity, equity, and inclusion practices.”

Court filings reveal that Bethany’s policy has led to internal complaints and departures among staff who felt pressured to conform to the organization’s religious standards. In response, Bethany has discontinued some of its hiring exceptions but maintains its right to employ individuals who support its Christian mission.

Partnership deal with Michigan’s LEO.

According to court documents, Bethany Christian Services of Michigan entered into a significant partnership with the State of Michigan’s Department of Labor & Economic Opportunity (LEO) to provide services to unaccompanied refugee minors (URM) through the Independent Living Plus (ILP) program.

The grant, totaling $3.8 million for the first year, was earmarked to fund crucial support services for vulnerable youth, including those who are asylum seekers, victims of human trafficking, and special immigrant juvenile status holders. The grant period extends from October 1, 2024, to September 30, 2027, with potential renewals based on funding availability.

Implications for refugee services in Michigan.

The funding denial has serious implications for refugee services in Michigan. Bethany Christian Services is one of the largest providers of resettlement support in the state, particularly for unaccompanied minors. Without state contracts, Bethany could be forced to lay off experienced staff and drastically reduce its capacity to serve refugees.

Bethany’s lawsuit seeks to halt the state’s actions and restore funding, emphasizing the organization’s commitment to serving vulnerable children and families regardless of their faith.

A precedent-setting battle.

This legal battle could set a precedent for how faith-based organizations interact with state-funded programs across the country. Bethany’s case highlights the tension between maintaining religious autonomy and adhering to evolving state standards on diversity and inclusion. The outcome will likely influence other religious nonprofits that rely on government funding while adhering to their faith-based missions.

As the clock ticks down to October 1, 2024, the date when Bethany’s existing contracts expire, the organization’s future hangs in the balance. The lawsuit not only challenges Michigan’s stance on religious hiring practices but also raises broader questions about the role of faith-based organizations in public service.