A federal court has sided with an Idaho church after a public charter school canceled the church’s lease. Truth Family Bible Church had rented the gymnasium at Sage International’s Middleton, ID campus for Sunday services until last year. Sage then canceled the lease after it began applying for $15 million in bonds through the Idaho Housing and Finance Association (IHFA). The application was flagged by the IHFA with concerns that Truth Family’s lease with the school could violate the Blaine Amendment, which prohibits religious institutions from receiving taxpayer funds.

Chief U.S. District Court Judge David Nye ruled that the cancelation violated Truth Family’s First Amendment rights and called the decision a “lapse in judgment.” “IHFA and Sage’s motivations for terminating Truth Family’s lease, whether reasonable or not, were still a violation of Truth Family’s constitutional right,” wrote Nye. He said the cancelation showed a “preference for non-religion” and “stifled” the church’s religious speech.

Nye declined to rule on the constitutionality of the Blaine Amendment as a whole, something representatives for Truth Family asked for. Despite the narrow ruling, Katherine Hartley, who argued for the church, said her clients were “thrilled.” “No church, religious institution or person of faith should be punished or disqualified for being religious,” she said in an email.

Republican Attorney General Raúl Labrador, who intervened in the case, stated he was “pleased” as well. “Government agencies cannot discriminate against religious organizations simply because they’re religious. Truth Family Bible Church deserved the same treatment as any secular group, and we’re glad the court recognized this,” he said. Sage International has not responded to the ruling, but Jason Lantz, a spokesman for IFHA, said the group welcomed “clarity.”  “Idaho Housing’s goal has been — and is — to comply with state and federal law in our bond financing activities. We welcome the legal clarity the court’s ruling provides, helping to ensure that this type of issue doesn’t arise in the future.”

The ruling is just the latest in an ongoing battle for determining whether religious funds can go towards religious institutions. In May, the Supreme Court split 4-4 in a ruling on whether or not an Oklahoma religious charter school violated the Constitution. Justice Amy Coney Barrett recused herself from the case. The split kicked the decision back to the states, upholding Oklahoma’s ban against the school.