Bethany Christian Services Sues the State of Michigan for Discrimination After Denial of Funding for Critical Services

Grand Rapids, Michigan — Bethany Christian Services has filed a lawsuit against the state of Michigan for discriminating against the organization because of its religious hiring practices. For the first time since Bethany began serving refugees in Michigan in 1962 and became a contractor of the state of Michigan in 1981, the organization has been denied refugee-resettlement services contracts because of their religious employment practices, even though federal law has long supported this civil right.

The lawsuit states the government’s actions violate Bethany’s right to the free exercise of religion guaranteed by the First Amendment of the United States Constitution and the Civil Rights Act of 1871. By denying funding for Bethany’s refugee-resettlement services, Michigan officials are blocking critical social services to vulnerable children and families, and jeopardizing jobs at Bethany.

“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. 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,” said Nhung Hurst, General Counsel for Bethany Christian Services.

For more than fifty years, the United States federal government has provided safe harbor for international refugees escaping violence or cultural and religious persecution in their countries. Since 1981, Bethany has provided refugee-resettlement services in Michigan and by 1984 was the largest Unaccompanied Refugee Minor (URM) service provider in Michigan. While the Office of Refugee Resettlement (ORR) funds the refugee resettlement program in the state, the overall program is managed by the Bureau of Population Refugees and Migration (PRM) in the Department of State. In late 2023, Office of Global Michigan (OGM) officials took issue with Bethany’s practice of requiring its employees to affirm the organization’s statement of faith. The OGM then denied grant funding to Bethany the following calendar year.

After repeated, unsuccessful efforts to discuss the situation with the OGM, Bethany is now asking the federal court to intervene and enjoin the OGM from ending the existing contracts pending a final resolution of its religious discrimination claims. Bethany Christian Services has filed the lawsuit in the federal district court in Grand Rapids against the state agencies responsible for administering federal grant for refugee-resettlement services: Michigan Department of Labor and Economic Opportunity and the OGM.