In this article, the author reports how the open-mindedness of publicly-funded Catholic schools in Canada has challenged American preconceptions on funding of parochial schools. In Canada, parochial education has been publicly funded since 1867. On the other hand, parochial schools in America must charge tuition fees and engage in extensive fund raising to survive. While there have been plans to fund parochial schools in the US as some of these schools could be considered more cost-effective alternatives for many voucher students, the issue on church-state separation continues to be an explosive one in the US.