The ruling dismantles a lawsuit by some Hoosier parents and the Indiana State Teachers Association.

The plaintiffs contended that the system that provides money to up to 7,500 students this year to private schools is unconstitutional because it diverts taxpayer money to support religious institutions and because it will undermine public schools.

"This is truly just a voucher program, taking money away from public schools to fund religious education," said Teresa Meredith, of ISTA.

Parents on the other side of the issue said their children are depending on that money and would have to change schools in the middle of the year if the voucher bill that recently passed the Legislature and was signed by Gov. Mitch Daniels is tossed.

According to the judge's ruling, the vouchers are not in place to benefit religious school, but instead to help students who use them.

More than 3,500 Indiana children are using the new vouchers to attend private schools instead of public ones.