A federal judge has thrown out a legal settlement that would regulate how Kentucky uses religious-based foster homes for children.
The American Civil Liberties Union and Americans United for Separation of Church and State sued Kentucky nearly 20 years ago.
They argued the state was violating the U.S. Constitution by publicly funding a child care provider owned and operated by the Kentucky Baptist Convention.
In 2015, a settlement signed by former Democratic Gov. Steve Beshear's administration would have required the state to closely monitor Sunrise Children's Services and other private child care agencies, with the assistance of the ACLU and Americans United.
Republican Gov. Matt Bevin took office in December 2015 and objected to the settlement.
Wednesday, U.S. District Judge Charles Simpson ruled the settlement was illegal.