The federal lawsuit alleges that the U.S. government's takeover and financial bailout of AIG was in violation of the Establishment Clause of the First Amendment.

CENTERFORSECURITYPOLICY: Center For Security Policy

That exception is triggered in a claim of a violation of the Establishment Clause and when there is a specific legislative grant for spending that implicates the First Amendment.

CENTERFORSECURITYPOLICY: AIG_shariah

Still, many argue that the Establishment Clause was intended to prohibit Congress from getting involved with religion and that the prohibition was only intended to apply to the federal government.

FORBES: North Carolina Religion Bill Killed-But One Third Of Americans Want Christianity As Official Religion Of USA