Students from the Moody Bible Institute of Chicago will be able to complete required classroom training in Chicago Public Schools after the district and the private Christian college reached a settlement in a religious discrimination lawsuit, officials said.
Under the agreement announced on March 12, the Chicago Board of Education will add Moody to its list of approved university partners, allowing the college’s elementary education students to participate in the district’s student‑teaching program.
Chicago Public Schools also agreed to pay $100,000 to cover attorney fees for Moody’s legal counsel, the Alliance Defending Freedom, and to work with the district’s student‑teaching program manager to help place Moody students in classroom assignments.
In exchange, Moody agreed to release its legal claims and dismiss the federal lawsuit without prejudice. Both sides filed a joint stipulation in U.S. District Court saying the case would be dismissed following the settlement.
The lawsuit, filed in November 2025, stemmed from a dispute over terms Chicago Public Schools required for participation in its teaching program. Moody had been blocked from the program after it declined to sign agreements that the district said were necessary to ensure compliance with its nondiscrimination policies, which prohibit employment discrimination on the basis of religion, gender identity or sexual orientation.
Moody’s education degree had been approved by the Illinois State Board of Education, but the college contended that the district’s conditions would force it to abandon its religious hiring practices.
The settlement establishes a new student teaching internship agreement governing how Moody students will participate going forward.
The legal dispute drew attention from Rep. Tim Walberg (R-Mich.), chair of the House Education and Workforce Committee, after he wrote to Chicago Public Schools seeking information about the allegations of religious discrimination.
“It’s a win for Moody, for religious freedom—and for public school students in Chicago,” Kristen Waggoner, president and chief counsel of Alliance Defending Freedom, stated.
