Christianity Today, Standing on Shaky Ground: Pastor Tax Break Threat Lessens:

Legal scholars say a recent Supreme Court decision upholding Arizona’s tax credits for scholarship donations could contain the seeds of defeat for a pending California challenge to the housing allowance enjoyed by pastors. …

The ruling sends a signal that the Freedom From Religion Foundation (FFRF) cannot rely on Flast in its current federal challenge to ministerial housing allowances, said church law expert Richard Hammar.

Notre Dame law professor Rick Garnett agrees. He noted a separate mid-April ruling by the Seventh District Court of Appeals, which dismissed the FFRF complaint that the presidential proclamation of a National Day of Prayer amounted to government establishment of religion. The Seventh Court said that since FFRF was not directly injured, it lacked legal standing.

“The ruling suggests that the Supreme Court is not alone in thinking that Flast should not be read over-broadly,” Garnett said. “It is powerful, persuasive authority for the claim that the foundation lacks standing to challenge the pastoral housing exemption.”