Christian School's Gov't Funds Raise Cain

SOLDOTNA, Alaska – A group advocating the separation of church and state is targeting Alaska Christian College (search) because the small school has received $1 million in federal grants.

The tiny Christian college, which has 37 students, helps prepare American Indians from small villages for life on big-city college campuses.

But the Freedom From Religion Foundation (search) says the two-year-old school is not accredited, offers no degrees and has no business accepting such a large amount of taxpayer money.

"It is a taxpayer boondoggle. It is religious pork," said Annie Laurie Gaylor (search), co-founder of FFRF.

Click in the video box at the right to watch a report by FOX News' Dan Springer.

However, the college's president says the school offers the community a valuable service.

"I believe that we are offering them a Christian education that does have moral values, that does encourage them toward things that are going to make them healthier and wiser and be able to get grounded on their feet before they leave and go off to a larger school," said ACC President Keith Hamilton.

ACC student Rae Fancher agreed. "The small community and the loving support that ACC has is very, very similar to that of the village."

Rep. Don Young (search), R-Alaska, the state's lone congressman, secured the grants, which amount to $20,000 per student. The money is for recruitment, construction and to help students pay for tuition.

Young didn't want to talk but a spokesman said the congressman supports the school, although he doesn't know if he'll seek more funding for it in the future.

Hundreds of religious colleges and universities in the United States get taxpayer support. The concern, critics say, is the amount of money involved and the fact that all the college preparation offered at ACC comes from one book.

"The purpose of this college, quote unquote, is for students who want to brush up on their Bible, or become closer to Jesus, or become a missionary to go to. And it is not appropriate for the public to finance this," said Gaylor.