Story highlights The Supreme Court ruled 7 to 2 that a Missouri policy is unconstitutional

The case involves a preschool run by the Trinity Lutheran Church that wanted grants

Washington (CNN) The Supreme Court ruled that a Missouri policy that excludes a church-run preschool from a grant program is unconstitutional.

Missouri launched an initiative in 2012 to encourage schools to use recycled tires to produce safer playground surfaces, but the program triggered a major religious liberty fight.

A preschool run by the Trinity Lutheran Church sued when it was denied a state grant to participate in the program. Its lawyers argued that the state's action constituted religious discrimination in violation of the federal Constitution's Free Exercise and Equal Protection Clauses.

The Court ruled 7 to 2 that the Missouri policy is unconstitutional. Liberal justices Elena Kagan and Stephen Breyer joined some of the conservative justices in questioning the state about what line should be drawn when the church said it planned to use the grant money not for religious activities but to protect children on the playground.

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