President Bush 41 established his Faith Based Initiatives during his tenure from 1989-1993. During that time a window opened for Churches to obtain federal grants as long as they were not issued in the name of the Church. For a Church to get a grant it had to develop an additional 501 (c) (3). This may change due to the Supreme Court Ruling of June 17, 2017.
In the case of Trinity Lutheran Church of Columbia v. Comer, the Supreme Court ruled that the Church’s Child Learning Center could not be denied a grant from the State of Missouri solely on the fact that it was a Church operated entity. With this ruling, the door has seemly opened that would stop Churches from being denied federal grants simply because they are a religious entity.