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 U.S. Supreme Court agreed on Friday to hear a bid led by two Catholic dioceses to establish in Oklahoma the nation's first taxpayer-funded religious charter school in a case testing the separation of church and state.

The Supreme Court agreed to hear a new church-state case that could yield a potentially momentous decision and change the funding of public schools in much of the nation.