Texas Attorney General Ken Paxton has filed a lawsuit against the state’s housing agency to block rules that bar religious groups from accessing public funds.

The suit targets the Texas Department of Housing and Community Affairs (TDHCA) over regulations Paxton claims violate religious freedom. The legal challenge strikes at the heart of church-state tensions in social services. At stake are millions in federal and state dollars that flow to organizations serving homeless and low-income Texans.

“Under the Free Exercise and Establishment Clauses of the First Amendment and Article 1, Sections 6-7 of the Texas Constitution, Texas may neither exclude religious organizations from public benefits because of their faith, nor condition participation in state-funded programs on theological choices about worship, instruction, or proselytization,” Paxton wrote in his petition.

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TDHCA rules currently prohibit organizations receiving agency funding from conducting religious activities within funded programs. Religious groups must agree to these restrictions before they can access money for housing and homelessness services.

Paxton argues that these regulations discriminate against faith-based entities solely because of their religious character. The lawsuit contends that conditioning public benefits on abandoning core religious practices violates constitutional protections.

“State agencies have no authority to force Christians and other religious organizations to censor their beliefs just to serve their communities,” Paxton said. “Constitutionally protected religious liberty must be upheld in Texas and across the country.”

The attorney general added that “TDHCA’s provisions within certain programs, which deter funding from going towards churches and religious organizations, must be struck down.”

This marks Paxton’s latest legal action defending religious rights in public programs. He previously challenged provisions in Texas higher education work-study programs that he claimed discriminated against religious students.

The lawsuit represents a broader push by Paxton to eliminate funding restrictions based on religious views. His office has signaled plans to target any provisions that could undermine religious liberty in government programs.