High Court Hears Arizona School Case

By Staff | November 3, 2010 | 12:15 PM EDT

Washington (AP) - The Supreme Court seems closely divided about an Arizona tax-break program that provides millions of dollars in scholarships for students at private religious schools.

The conservative justices indicated they are likely to rule against a challenge to the Arizona program that says it amounts to an unconstitutional state endorsement of religion. The court's liberals suggested they have problems with the state's tax credit.

The Obama administration joined with the state in arguing in strong defense of the program, saying the Arizona residents who oppose it should not even be allowed to bring their lawsuit in federal court.