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If Catholic Charites of Illinois refuses to allow married same-sex couples to adopt, it may face being cut off from the state.

Catholic Charities of Illinois could lose its state adoption contract. Sangamon County Circuit Court Judge John Schmidt said the non-profit organization and state’s nearly 40-year relationship doesn’t mean it’s entitled to a lifelong contract, according to the Chicago Tribune.

Officials, Schmidt ruled Friday, could end the pact. Illinois’ Religious Freedom Protection and Civil Union Act went into effect June 1, prompting Catholic Charities to seek an exemption.

Schmidt’s ruling centered on whether the state’s refusal to enter new pacts violated Catholic Charities’ property rights. The Previous contracts expired June 30.

Catholic Charities counsel maintains the law affirms its right to be selective. However, the Illinois Attorney General’s Office said a clause in the law only protects clergy from performing same-sex unions, while the religious organization’s policy flouts Illinois’ discrimination laws.

Securing the exemption failed and Catholic Charities pledged to turn away same-sex couples. An Illinois Senate committee defeated a Religious Freedom Protection and Civil Union Act amendment in April, the Huffington Post reported.

Under the law, Catholic Charities must consider all married couples in Illinois—since it receives $30 million in tax money to serve more than 3,000 children, both the Huffington Post and Chicago Sun-Times reported.

Photo by Angie Tabaczynski