This case was about a State refusing to give funds to a church because it was a church. I think the Free Exercise Clause of the 1st Amendment is an important issue.
A part of the Missouri constitution forbids the state from funding any church. I believe it was put in to prevent the funding of parochial schools which were and still are pretty prominent in many parts of the state. So because of this clause, the state can reimburse any group that provides for rubber safety coverings for playgrounds except churches.
I think it’s playing with fire for a church to accept funds from the government. Surely, any agreement of such comes with strings attached.