On June 17, the Supreme Court decided Fulton v. Philadelphia. In a model of restraint, the court resisted the efforts of Catholic Social Services and their supporters looking to overturn Employment Division, Division of Human Resources of Oregon v. Smith, 494 U.S. 872 (1990). Instead, by using a close textual analysis, the court majority reached a conclusion that gave relief to Catholic Social Services without transforming the Free Exercise clause or overruling Smith.

In March 2018, the City of Philadelphia barred Catholic Social Services (CSS) from placing children in foster homes because of its policy of not licensing same-sex couples to be foster parents. CSS sued the City of Philadelphia, asking the court to order the city to renew its contract. CSS argued that its right to free exercise of religion and free speech entitled it to reject qualified same-sex couples because they were same-sex couples, rather than for any reason related to their qualifications to care for children.

The district court denied CSS's motion for a preliminary injunction, and the U.S. Court of Appeals for the Third Circuit affirmed, finding that the city's non-discrimination policy was a neutral, generally applicable law and that CSS had not demonstrated that the city targeted CSS for its religious beliefs or was motivated by ill will against its religion.