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A 1965 amendment to New York's Education Law required public school boards to lend textbooks to elementary and secondary school students enrolled in private and parochial schools. The Board of Education for New York Central School District No. 1, contending that the law violated the Establishment and Free Exercise Clauses of the First Amendment, filed suit against James Allen, Commissioner of Education, requesting a declaratory injunction to prevent enforcement of the statute. The trial court agreed with the board and found the statute unconstitutional. The Appellate Division reversed the ruling, finding that the boards lacked standing. On appeal, the New York Court of Appeals ruled the boards did have standing, but also found that, because the law's purpose was to benefit all students regardless of the type of school they attended, the law did not violate the First Amendment.

Do the Establishment and Free Exercise Clauses of the First Amendment forbid New York from requiring that public school boards loan textbooks to parochial school students without cost?

No. In a 6-3 opinion authored by Justice Byron R. White, the Court applied the test constructed in Abington School District v. Schempp and found that, because the stated legislative purpose and necessary effects of the statute did not advance any one religion or religion in general, the law did not violate the First Amendment. Because the books were given to the students, rather than the parochial schools themselves, the Court reasoned, "the financial benefit is to parents and children, not schools."