In light of the legal and educational issues surrounding the status of religious charter schools, this article is divided into two parts. The first section reviews key litigation addressing the parameters of public aid to religiously affiliated nonpublic schools because these cases provide the necessary background should judicial challenges arise to faith-based charter schools. This first part of the paper also briefly reviews Supreme Court cases that forbid prayer and/or religious activities in school, an essential part of daily activities in religiously affiliated nonpublic schools that cannot continue in faith-based charter schools. The second part reviews educational and policy considerations dealing with how publicly funded financial assistance might impact the religious missions and identities of religiously affiliated nonpublic schools that seek to become faith-based charter schools; this section also reviews the constitutionality of both state aid to religious charter schools and the acceptability, if any, of prayer and religious activities in these schools. The article rounds out with a brief conclusion.