This report gives a brief overview of the evolution of the U.S. Supreme Court's interpretation of the Establishment Clause of the First Amendment in regards to sectarian schools at all levels. It analyzes the categories of aid that have been addressed by the Court and also explains which categories have been held to be constitutionally permissible or impermissible, both at the elementary and secondary school level and at the college level. The report also briefly discusses H.R. 1 of the 111th Congress, economic stimulus legislation that includes provisions that would provide assistance to institutions of higher education for modernization, renovation, and repair of facilities.