Read the full story at the Huffington Post:
The measure passed this year by the Republican-dominated General Assembly and signed into law by GOP Gov. Mitch Daniels is the nation's broadest private school voucher program. A group of teachers and religious leaders backed by the Indiana State Teachers Association is challenging it, claiming it violates the state constitution by providing public money to religious institutions.
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However, in his ruling denying a temporary injunction, Marion Superior Court Judge Michael Keele wrote the law "is religion-neutral and was enacted `for the benefit' of students, not religious institutions or activities."
"It permits taxpayer funds to be paid to religious schools only upon the private individual choices of parents," Keele wrote in siding with the state.