Currently, religious nonprofits that receive federal contractors are exempt from rules that cover hiring and firing on the basis of religion. However, the Labor Department has proposed a new rule that would expand this exemption to allow more federal contractors to take advantage of it. Critics are concerned that this rule would allow federal contractors to discriminate against workers for a wide variety of reasons. The Trump administration will be challenging additional protections for gay and transgender workers this fall.
See "Labor Dept. Moves to Expand Religion Exemption for Hiring and Firing", Noam Scheiber, The New York Times, August 16, 2019