The U.S. Supreme Court has ordered a lower court in New York to reconsider a case about whether certain religious employers must provide health insurance that covers abortion services.

According to the Christian Post, the justices vacated a prior decision by the New York Court of Appeals and returned the case for rehearing in light of a new precedent involving religious rights and state mandates.

On Monday, the Supreme Court sent the case, known as Diocese of Albany v. Harris, back to the New York Court of Appeals. The decision follows the Court’s recent unanimous ruling in a Wisconsin case that centered on similar religious freedom concerns.

The New York case involves a challenge by several religious organizations, including a Roman Catholic diocese, to a state regulation requiring employer-provided health plans to cover abortion services. The plaintiffs argue that the rule infringes upon their religious beliefs.

Initially, New York offered a broad exemption for religious employers who objected to providing abortion coverage. However, the state later changed that rule to grant exemptions only to entities with an explicitly religious mission.

High Court Applies New Legal Standard

The Supreme Court’s direction to rehear the New York case comes in the context of its recent decision in Catholic Charities Bureau, Inc. v. Wisconsin Labor & Industry Review Commission. That ruling clarified the standards for when religious organizations are entitled to exemptions from laws that conflict with their beliefs.

In that case, the Court found that Wisconsin could not deny a religious exemption to the Catholic Charities Bureau of the Diocese of Superior, even though much of the group’s work could be viewed as secular.

By establishing that religious organizations qualify for exemptions even when they serve a broad population, the Wisconsin ruling set a new legal precedent that now applies to other cases, including the one from New York.

Past Supreme Court Involvement and Background

This is not the first time the U.S. Supreme Court has weighed in on the case. In 2021, the justices had already ordered a reconsideration of the lawsuit after a separate ruling in Fulton v. City of Philadelphia, which affirmed faith-based exemptions in a different context.

Despite that earlier guidance, the New York Court of Appeals upheld the abortion coverage mandate, concluding that the plaintiffs did not meet the new exemption threshold because they served people beyond their religious communities.

Following the New York court’s latest ruling, plaintiffs returned to the Supreme Court once more. The Court’s June 2025 decision marks its second time instructing the state court to reevaluate its position.

Religious Liberty Groups React to Ruling

The Becket Fund for Religious Liberty, representing the plaintiffs, welcomed the Supreme Court’s action. The organization's vice president and senior counsel, Eric Baxter, criticized New York’s approach to enforcing its regulations.

“New York wants to browbeat nuns into paying for abortions for the great crime of serving all those in need,” Baxter said. “For the second time in four years, the Supreme Court has made clear that bully tactics like these have no place in our nation or our law.”

He expressed optimism that the rehearing would result in more favorable treatment for the religious groups. “We are confident that these religious groups will finally be able to care for the most vulnerable, consistent with their beliefs,” Baxter added.

Attorneys Push Back Against State Restrictions

Noel Francisco, who leads the Washington D.C. office of Jones Day and also represents the plaintiffs, said that faith-based groups should not be forced to provide services that conflict with their core values.

“Religious groups should not be forced to provide insurance coverage that violates their deeply held religious beliefs,” Francisco said, reiterating the plaintiffs’ position that the state mandate imposes an unfair burden.

He also issued a direct message to New York, saying, “We are confident that New York will finally get the message and stop discriminating against religious objectors.”

Implications for Future Religious Exemption Cases

The Supreme Court’s recent decisions could significantly influence how lower courts interpret religious exemptions moving forward. By affirming that religious organizations may be eligible for exemptions even when engaging in secular work, federal precedent shifts toward broader protections for faith-based groups.

These evolving legal standards may impact other state laws that place similar restrictions on religious employers, particularly in areas such as healthcare, education, and public services.

As the New York Court of Appeals prepares to revisit the case, supporters and critics alike will be watching closely to see how the new precedent shapes the outcome.