A US Court has dismissed a class action by around 40 students at Christian colleges and universities.
They claimed the federal Department of Education failed to protect LGBT students from discrimination.
The central issue was a civil rights statute that grants a religious exemption to discrimination on the basis of sex, sexual orientation and gender identity.
The plaintiffs argued it allows faith-based colleges to discriminate against them.
The court reviewed hundreds of exhibits and thousands of declarations of discrimination.
The judge ruled the exemptions are constitutional and that they are not motivated by an intent to discriminate.
Religion News Service reports three Christian colleges were co-defendants,
Their lawyers said it was a win for religious freedom.