A state inspector has been asked to review whether Yeshiva University, which is in a court battle with a group of L.G.B.T.Q.
students over whether it must recognize their campus club, should have received $230 million in taxpayer funds after the university has said that it is a religious institution.
The referral could lead to a significant escalation in a complex case in which the university has argued in court that it is a Modern Orthodox Jewish religious institution, which would exempt it from anti-discrimination laws and allow it to reject the club.
Before the 2021 lawsuit, Yeshiva described itself as an educational institution, which made it eligible for taxpayer funds but obliged it to follow city and state nondiscrimination laws.