Answer:
President Bush surely based his decision on previous jurisprudence by the Supreme Court. In 1899, the Court was asked to make an interpretation of the religion clause of the First Amendment. It was a case involving federal financing through a grant for the construction of a hospital that was going to be run by a Catholic order. The Court saw the hospital as a secular institution and charted as such by Congress, not a religious one, and in this way it avoided the constitutional issue.
Though uphelding the strict lay character of the state, the Court has not closed the door to all types of aid for certain activities by religious organizations.
Explanation: