A Victory for Faith-Based Education: Moody Bible Institute Wins Legal Battle for Religious Hiring Standards

In a significant development for religious liberty and Christian higher education, Moody Bible Institute has successfully reached a settlement with Chicago Public Schools (CPS). The resolution, finalized in March 2026, marks the end of a legal dispute that began when the school’s elementary education students were barred from participating in the city’s student-teaching programs. The settlement serves as a milestone for faith-based institutions seeking to maintain their doctrinal integrity while serving the public good.

The Facts: A Dispute Over Doctrine and Access

The legal tension began in late 2025 when Chicago Public Schools excluded Moody Bible Institute students from its Student Teacher Internship program. The exclusion was not based on the quality of Moody’s academic curriculum or the performance of its students. Instead, it centered on the school’s religious hiring standards.

CPS had updated its Student Teacher Internship Agreement to include provisions that required participating institutions to comply with specific non-discrimination policies regarding sexual orientation and gender identity in their hiring practices. For Moody Bible Institute, an institution founded in 1886 with a deep commitment to biblical authority, these provisions presented a direct conflict. Moody requires its employees to affirm a doctrinal statement that aligns with traditional biblical views on marriage, sexuality, and gender.

In November 2025, represented by Alliance Defending Freedom (ADF), Moody Bible Institute filed a lawsuit. The core of the argument was that CPS was unlawfully denying Moody students access to a government benefit program solely because of the institution’s religious exercise. The legal team pointed to the 2022 Supreme Court decision Carson v. Makin, which established that states cannot exclude religious schools from public benefit programs based on their religious character or exercise.

The lawsuit further alleged that CPS had been inconsistent in its enforcement, pointing out that other religious colleges with similar hiring practices had been allowed to remain in the program while Moody was singled out.

By March 2026, a settlement was reached. Under the terms of the agreement, Chicago Public Schools modified its internship agreement to explicitly recognize Moody’s right to maintain its faith-based hiring practices. Furthermore, CPS restored Moody to its list of approved university partners on its website and agreed to pay $100,000 in attorney fees.

The Lens: Biblical Mission and Constitutional Protections

From the perspective of the Assemblies of God and the broader evangelical community, this victory is about more than just a legal technicality; it is about the freedom to remain "salt and light" in a complex world. At The McReport, we view these developments through the lens of scriptural integrity and the Great Commission.

2 Timothy 3:16-17 tells us, "All Scripture is God-breathed and is useful for teaching, rebuking, correcting and training in righteousness, so that the servant of God may be thoroughly equipped for every good work." For institutions like Moody, the "good work" of training teachers is inextricably linked to the "God-breathed" truths found in Scripture. To compromise on hiring standards would be to compromise the very foundation upon which their educational mission is built.

The debate often pits two values against each other: the government’s interest in broad inclusivity and the constitutional right of religious institutions to self-governance. Public policy advocates often argue that any organization receiving or participating in public programs should adhere to universal non-discrimination standards to ensure a welcoming environment for all.

However, the First Amendment provides a crucial protection for religious organizations to maintain their identity. Without the right to hire leaders and staff who share the institution’s core convictions, a religious school would eventually lose its distinctive character. The Supreme Court has repeatedly affirmed that the government cannot force a religious group to choose between its faith and participation in the public square.

This case highlights the importance of the "ministerial exception" and the broader principle of religious autonomy. When Moody Bible Institute trains a student to be a teacher, they are not just teaching pedagogy; they are forming a Christian professional who views their work as a calling.

A Balanced Perspective: The Public Square

It is important to acknowledge the tension inherent in these cases. Chicago Public Schools operates in a diverse, secular environment where policy is often designed to protect a wide array of identities. The district’s initial stance likely came from a desire to ensure that all programs associated with the city reflect those values of secular inclusivity.

However, true inclusivity in a pluralistic society must also include space for religious organizations that hold traditional views. Forcing a religious institution to abandon its creed in order to access a public program is not inclusivity; it is exclusion based on belief. By reaching this settlement, CPS has moved toward a model of true pluralism, one where different worldviews can coexist in the service of the community’s children.

Moody’s Provost, Dr. Tim Sisk, noted that the resolution is an acknowledgment that the initial exclusion was a mistake. It reaffirms that religious organizations do not lose their constitutional protections simply because they choose to engage with the public sector.

For the students of Moody, this is a practical win. They can now enter Chicago’s classrooms, bringing their skills and their character to some of the most underserved schools in the city. They are being prepared to work "unto the Lord," as described in Colossians 3:23-24: "Whatever you do, work at it with all your heart, as working for the Lord, not for human masters, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving."

The Response: Standing Steadfast and Serving Well

The outcome of this legal battle should encourage believers and faith-based institutions across the country. It serves as a reminder that the legal framework of our nation still provides a robust defense for those who stand by their convictions. However, the victory also carries a responsibility.

As Christian educators and students return to the public school system in Chicago, the call is to serve with excellence and grace. Matthew 5:16 reminds us, "In the same way, let your light shine before others, that they may see your good deeds and glorify your Father in heaven." The best defense of religious liberty is the visible fruit of a life lived in service to others.

We must pray for our educational institutions. The pressure to conform to secular standards is not going away. It requires wisdom, courage, and a deep reliance on the Holy Spirit to navigate these waters. We should pray for the administrators at Moody Bible Institute and similar schools, that they would remain steadfast in their mission and doctrinal integrity.

We should also pray for the students. Entering a public school system as a student teacher can be a daunting task. These young men and women are on the front lines, representing the heart of Christ in environments that may not always be friendly to their faith.

Finally, we should pray for our public officials and school board members. May they have the wisdom to recognize the value that faith-based partners bring to the community and the grace to uphold the constitutional rights of all citizens.

Invite: Discover Your Calling

Are you navigating the complexities of your calling in a secular world? Whether you are a student, an educator, or a leader, staying true to your mission requires more than just legal protection: it requires spiritual mentorship and a clear vision.

At LayneMcDonald.com, I offer mentoring and coaching designed to help you discover and walk in the fullness of your calling. Together, we can navigate the challenges of the current cultural landscape while remaining anchored in biblical truth.

Discover your calling and find the support you need at LayneMcDonald.com.

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Sources: Alliance Defending Freedom, My Christian Daily, The College Fix.