As noted here, the 7th Circuit ruled against the Freedom From Religion Foundation, which had challenged the “pastoral care” role of the VA Chaplaincy on Constitutional grounds (filed in 2006).  While the lower court ruled on the merits of the case (in favor of the VA), the circuit court vacated that decision and found that the FFRF did not have standing to sue.

In its ruling, the court also included a fairly detailed history of the military Chaplaincy.  Even the FRFF legally conceded that chaplains

obviously perform religious activities, which they can do to a limited extent to accommodate the constitutional Free Exercise rights of hospitalized patients.

The judges also noted that, contrary to some accusations,

It is undisputed that VA policy prohibits proselytizing…It is further undisputed that the provision of pastoral care is overtly religious in content only if the patient wishes…

Interestingly, while the FRFF claimed that the situation generated excessive government entanglement with religion, the district court actually wrote that the order sought by the FRFF would itself create excessive entanglement.