Michigan Catholic Charities Sues State AG Over 'Religious Targetting'

A lawsuit filed in the U.S. District Court for the Western District of Michigan alleges that the state’s Department of Health and Human Services and the office of the state Attorney General stripped state funding from Catholic Charities of Ingham, Eaton, and Clinton Counties because the organization adhered to its religious beliefs.

Cited as individuals and in their official capacity in the complaint filed on June 26 as defendants are Elizabeth Hertel, the director of the Michigan Department of Health and Human Services, and Angela Smith-Butterwick, who leads the department's Substance Use, Gambling & Epidemiology Division. Also cited is State Attorney General Dana Nessel, and the Mid-State Health Network. 
Hertel resigned June 30.

The Alliance Defending Freedom (ADF), a non-profit law firm, is of counsel to Catholic Charities, which has served vulnerable communities in the state capital region for many years. Founded on principles of Catholic doctrine and belief, the agency provides healthcare, dental, and mental health services; as well as substance use treatment; counseling, financial coaching, adoption and foster care, assistance with food, clothing, and prescription drugs, refugee resettlement; and immigration legal assistance.

According to a release from ADF, when state government officials learned of its religious beliefs about abortion and contraception, they launched an investigation, crafted new policies targeting those beliefs, and ultimately stripped the ministry of critically needed state funding. 

“Catholic Charities is a force for good in the Lansing region, serving at-risk populations within its community with practical and spiritual resources. Yet because it operates in accordance with the teachings of the Catholic Church, Michigan officials who disagree with its views on the sanctity of human life have targeted the ministry and withheld public benefits,” said ADF Senior Counsel Jeremiah Galus. “The Constitution forbids the government from punishing faith-based organizations in this way, which is why we’re urging the court to restore Catholic Charities’ First Amendment freedom to continue serving Lansing women and families according to its religious beliefs,” he went on to say.

“Rooted in Jesus’ love and guided by the teachings of the Catholic Church, Catholic Charities exists to serve the most vulnerable populations within the Lansing region,” said Deacon Bob Bauer, interim CEO of Catholic Charities. “In particular, the work at our Cristo Rey Counseling Center helps mothers overcome mental health and substance use disorders and live healthy, fulfilled lives for themselves and their children. Yet the state is on a mission to shut us down, not because of any complaint or failure on our part, but simply because of our religious beliefs about the dignity of human life,” Bauer said. Annually, Catholic Charities serves nearly 79,000 individuals and operates from two locations in Lansing: the Cristo Rey and St. Vincent campuses.

The complaint asks the court to bar the defendants from withholding federal funds to Cristo Rey Women's Counseling Center while withholding other federal funding from Catholic Charities of Ingham, Eaton, and Clinton Counties "because of Catholic Charities' religious character, beliefs, speech, or practices, including its sincerely held beliefs and practices regarding contraception and abortion."

The lawsuit also asks the court to "Declare that Defendants violated Catholic Charities' right to due process by discontinuing Cristo Rey's designation without notice, explanation, or opportunity to be heard, and in circumvention of the contractual dispute resolution framework between Cristo Rey and Mid-State Health Network."

Catholic Charities is seeking preliminary and permanent injunctions, as well as compensatory, punitive, and nominal damages and court costs.

According to ADF, the dispute arose after Mid-State Health Network adopted "a new policy requiring faith-based providers to disclose religiously motivated service limitations." The policy was adopted in March, just days after officials met with Catholic Charities to question its "Core Values and Commitment to Mission" document, which Mid-State had received from a "disgruntled former employee." 
"Meeting notes confirm what came next: officials raised concerns about the pledge's stance on abortion referrals, contraception, and gender ideology, characterizing them as inconsistent with 'objective, non-judgmental client support,'" the lawsuit states.

In May, the state rescinded Cristo Rey's designation as a Women's Specialty Services and Enhanced Women's Services provider. "The termination letter cited no client complaint, no audit finding, no quality concern, and no specific rule Cristo Rey had broken," ADF said. "It pointed only to Catholic Charities' 'internal policies and procedures'—language for a decision made about belief, not performance."

In June, Catholic Charities' request for a stay of the termination was effectively denied when the state agencies named in the complaint failed to respond. "The Department has a documented history of targeting Catholic organizations for their religious beliefs," the complaint filed last Thursday states, citing the 2019 case Buck v. Gordon.

"In Buck, this Court found that the Department's actions against Catholic Charities' predecessor, St. Vincent Catholic Charities, were the product of 'religious targeting' and reflected 'a hostility toward a religious viewpoint,' warranting strict scrutiny and entry of a preliminary injunction."

ADF noted that Hertel signed the 2019 Buck settlement.

"She knew, firsthand, that targeting a ministry for its religious convictions crosses a constitutional line," ADF stated. ADF also noted that Nessel has publicly referred to Catholics and pro-life advocates as "anti-abortion extremists" and "anti-abortion crusaders."