The Miracle Hill Ministries, a Christian-only adoption agency, has set itself up for this fiasco by taking government (both federal and state) money.
They receive stolen property from the state, yet wish to be independent of its various designs.
They made a deal with the devil, and now they refuse to do their part of the bargain. It doesn’t work this way.
The ACLU, of course, is in part making it so. It’s using the idea that any private entity that has any connection with the government whatsoever is immediately entangled into the state’s regulatory morass.
This is false, because by taking government subsidies one is merely morally compromised but not legally indebted to the state.
Miracle Hill thus occupies an intermediate position: it is neither free nor a fully-owned bureaucratic subsidiary of the state that is commanded by some department head. Only if it were the latter would the ACLU’s argument go through.
(It is true though that a subsidy is an interventionist measure that is unstable and logically tends towards either laissez-faire or socialism.)
In addition, the ACLU seems to believe that the state should be officially atheist:
States have an obligation to care for children in the public child-welfare system.
When they hire agencies to care for them… they should not be using religious criteria to deny children access to families that they desperately need.
Who came up with that piece of political philosophy? Lenin?