Asserting that fear and misunderstanding about religion in public education precludes reflection and compromise needed to promote societal well-being, this paper examines the current status of religion in U.S. public education and considers implications for policy making and practice. A brief history of religion in public education and two recent cases challenging education policy in Pennsylvania and New York are used to frame the discussion. The paper concludes with a proposal for a "moderate secularism," an alternative approach to policy and practice based upon a language of possibility for addressing religion in public education. Such an alternative would neither be sectarian (insofar as it would not be partisan) nor secular (insofar as it would not abstain from meaningful spiritual investigation and religious inquiry). (Contains 31 references.) (LH)