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Tipsheet

Wisconsin AG Josh Kaul Defies SCOTUS on Catholic Charities Ruling

AP Photo/Eric Gay, File

Back in 2016, Catholic Charities requested an exemption from the state of Wisconsin's unemployment insurance (UI) tax. Arguing that it was a religious organization, Catholic Charities said it should be exempt from UI taxes, per WI state law. The Wisconsin Department of Workforce Development (DWD) denied the request, and Catholic Charities sued. In the spring of last year, the WI Supreme Court sided with the DWD, saying Catholic Charities wasn't "operated primarily for religious purposes" and that it doesn't "proselytize and serve everyone."

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Catholic Charities, with the Becket Fund, appealed the state Supreme Court's ruling to the U.S. Supreme Court and won in a 9-0 decision.

Despite that, Wisconsin officials continue to fight Catholic Charities in court. Their attorney, Eric Rassbach, is speaking out.

Rassbach points to the SCOTUS decision as settling the argument.

Even Justice Sotomayor chided WI officials for their religious discrimination.

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Now, WI AG Josh Kaul, who is running for reelection in 2026, has decided that instead of giving the exemption to Catholic Charities, he wants to axe the exemption for all religious charitable organizations.

Rassbach says such a move is "undermining a key protection relied on by faith-based organizations across Wisconsin."

The Becket Fund is asking the state Supreme Court to stop this power grab.

If the court doesn't stop Kaul, it'll harm every religious charitable organization in the state.

Having to pay the UI tax means religious organizations would owe thousands — perhaps tens of thousands — of dollars to the state of Wisconsin, a financial burden many of them could not afford.

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While Kaul's office has not issued a comment on this latest filing, he did submit a brief to SCOTUS prior to the case's hearing last year. In that brief, Kaul argued that "people receiving services from these organizations receive no religious training or orientation" and urged the court not to hear the case.

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