Hannibal, Mo. | The settlement of a suit filed by Hannibal-LaGrange University (HLGU) against the Department of Education prevents the federal government from applying regulations on for-profit schools to non-profit faith-based schools. In HLGU’s estimation, that protects the constitutional right of Baptists to establish and maintain schools that reflect their faith, doctrine, and values.
HLGU President Robert Matz
“This regulation didn’t just misunderstand Baptist polity, it attacked it,” said HLGU President Robert Matz.
Under the Biden administration, federal regulators forced Christian schools to sever ties with churches or lose federal financial aid for their students. HLGU negotiated for months, but ultimately filed a lawsuit against the Department of Education. HLGU students in a prison education program lost Pell Grants, and the school had to make up a $700,000 aid deficit.
“The regulation treated churches like corporate owners and assumed that spiritual oversight must come with financial liability,” Matz said. “That’s foreign to Scripture, to Baptist life, and to the First Amendment.”
The settlement removes the unconstitutional burden on HLGU, but students who were denied or delayed aid won’t see those funds recovered.
“This settlement is a necessary victory, not a complete one. Students were harmed. Churches were put at risk. The fact that the University had to sue at all is a reminder that religious freedom requires constant vigilance,” Matz said.
The agreement clarifies that the Missouri Baptist Convention will not be forced to provide financial guarantees for HLGU, Missouri Baptist University, or Southwest Baptist University simply because it appoints their trustees. The case was dismissed on January 16, the same day the Department issued new guidance to all schools as result of the lawsuit.
While this agreement is specific to HLGU, the principle it secures is broader, a University statement said. “Churches can remain churches, and Christian universities can remain Christian—without forced separation. Governance structures across Southern Baptist life are similar.”
“This case was never about paperwork,” Matz said. “It was about whether Christians would be free to educate the next generation in faithfulness—without the government forcing them to cut ties with the very churches that make the University’s mission possible. HLGU stood because standing was required.”
(Ed. Note: For IBSA churches, this case serves as a reminder of the need for vigilance in protecting religious freedoms and First Amendment rights. While HGLU had ready legal representation in what could have been an expensive court battle, most churches do not.
That’s why IBSA partners with Alliance Defending Freedom, a legal group specializing in religious liberty cases. For a church that enrolls, ADF will review its legal documents and provide access to ministry specific legal resources, including access to ADF attorneys. The service cost is based upon a church’s average attendance, and IBSA pays 50% of membership fees for all cooperating churches. Learn more at adfchurchalliance.org/partner/Illinois.)