On November 13, 2014, The Seventh Circuit Appeals Court vacated a District Court's decision which had found the clergy housing allowance exclusion to be unconstitutional. The Appeals Court remanded the case with instructions to dismiss the complaint for lack of standing by the Freedom From Religion Foundation. Since the suit was dismissed on procedural grounds, the court's action did not address the larger issue. As noted in the opinion, "We therefore do not reach the issue of the constitutionality of the parsonage exemption."
See posting by the ECFA (Evangelical Council for Financial Accountability) here.