A Colorado mother of three says her family was denied $12,000 in taxpayer-funded preschool benefits because she chose a Catholic education for her children, accusing the state of discriminating against religious families through a program promoted as universal.

Erika Nagle, whose children attend St. Mary Catholic School in Littleton, Colorado told Fox News Digital that two of her children were denied access to the state's preschool funding program, leaving her family to cover additional education expenses. "We are being excluded from this benefit because we are Catholic," Nagle said in an interview with Fox News Digital "And so in a state that preaches inclusion, they are actively going out of their way to exclude a huge chunk of people because of our religious beliefs."

At the center of the dispute is Colorado's universal preschool program which Nagle says provides more than $6,000 per eligible child for preschool education. Catholic schools challenging the program argue that the state's participation requirements unfairly burden their religious beliefs and admissions practices. According to Becket Colorado launched its preschool funding program in 2023, offering eligible families approximately $6,300 to cover 15 hours of preschool per week.

The organization said the program was promoted as a universal benefit that would allow parents to choose among public, private and religious preschools, prompting Catholic families across the state to seek participation. Nagle says the consequences go beyond her family's finances. "We have had two preschools in the archdiocese that have been closed down," she said, arguing that the program is affecting Catholic school enrollment and pressuring families to abandon the religious education they want for their children.

"The state is dangling a carrot over here, incentivizing people to leave their faith, to abandon the Catholic education that they want," she said.

Nagle argued that nearly every school has admissions criteria tailored to the community it serves, whether that means prioritizing neighborhood children, people who identify as LGBTQ, children with special needs or low-income families.

She said St. Mary similarly prioritizes Catholic families while welcoming students whose families are willing to respect the school's religious teachings. Nagle questioned why the Catholic school's admissions practices should be treated differently. "The state grants $6000 per family to be used during the year before kindergarten, so the year when they're in pre-K, which is technically the year before kindergarten, and you can use it at the school of your choice," Nagle said.

"And so Catholics are forced to pay the price for the school of our choice, which is Catholic school. And so you have thousands of Coloradans that are being forced to pay more than anyone else."

The legal battle raises questions about the extent to which religious schools can participate in publicly funded education programs while maintaining faith-based admissions policies VERMONT PAYS $566K IN DAMAGES, LEGAL FEES TO CHRISTIAN SCHOOL IT BANNED FROM ALL SPORTS COMPETITIONS FOR YEARS "Colorado shouldn't force Catholic families to give up their choice, which is a faith-based school, and, you know, the state is letting other schools serve their communities, but they're not letting Catholic families serve their communities," Nagle said. "And to me, it also makes me wonder, is this by design, is this paving the way for godlessness or for what? Why can't Catholic families receive this benefit when there are other schools that were granted their exemption for other admissions requirements?"

The Supreme Court is hearing the case on Tuesday.

A spokesperson for the Colorado Department of Early Childhood (CDEC) said the department could not comment on pending litigation.

Fox News Digital reached out to Colorado Gov. Jared Polis' office for comment but did not immediately receive a response.