The Supreme Court agreed Friday to decide whether states may reject religious charter schools from receiving public funding, agreeing to hear arguments in an appeal out of Oklahoma involving the first such school in the nation.

The state’s highest court said that the religious charter school would be a “state actor” and not a private entity contracting with the state. State funding of the school would violate the U.S. Constitution’s First Amendment prohibition on government establishment of religion, the court said.

The proposal to create the nation’s first religious charter school paid for by taxpayer funds could move the line between church and state in education.