Places of contact between religion and the state has increased considerably over time; as this overlap has increased, liberals have increasingly seen fit to call for state intervention in religions that are internally discriminatory in the name of equal citizenship. By looking at the issue of direct and indirect state support for discriminatory schools, I argue for a more pluralistic and tolerant view of religion than that of many liberals. Preserving diversity is an important liberal good that should not lost sight of, though there are limits to the kinds of discrimination the liberal state should support. Much of my argument rests on the distinction between direct and indirect support. The liberal state should impose strict standards on funds it grants directly to organizations, but it should be more relaxed for indirect support it gives, except in exceptional circumstances. Places of contact between religion and the state has increased considerably over time; as this overlap has increased, liberals have increasingly seen fit to call for state intervention in religions that are internally discriminatory in the name of equal citizenship. By looking at the issue of direct and indirect state support for discriminatory schools, I argue for a more pluralistic and tolerant view of religion than that of many liberals. Preserving diversity is an important liberal good that should not lost sight of, though there are limits to the kinds of discrimination the liberal state should support. Much of my argument rests on the distinction between direct and indirect support. The liberal state should impose strict standards on funds it grants directly to organizations, but it should be more relaxed for indirect support it gives, except in exceptional circumstances.