MORRISTOWN — The Morris County freeholders have started doling out historic trust fund grants to religious institutions, despite a lawsuit to stop the awards, a report says.

The governing body last week approved grants for 12 applicants, including four religious groups, The Record reported.

A total of 32 organizations will get a share of this funding cycle’s $2.7 million in grants, the report says. Of that, the report says about $1 million will go to religious entities for secular projects, like restoration.

The Freedom from Religion Foundation and a Madison resident in January filed a lawsuit to stop the freeholders from giving the grants to religious groups. They argue using taxpayer money to fund churches violates the state Constitution.

In May, a New Jersey appeals court ruled against using state money to fund the construction of buildings where religious instruction occurs. In that decision, the court prevented an Orthodox Jewish yeshiva in Lakewood and a Presbyterian seminary in Princeton from receiving state grants. The American Civil Liberties Union of New Jersey called the decision “a groundbreaking victory against government sponsorship of religion.”