Yale Law School has been accused of discriminating against groups who hold traditional views on gender and same-sex relationships.
Former Republican presidential candidate, Senator Ted Cruz, announced that the Senate Judiciary Committee is opening an investigation into their decision.
Critics say the university has caved in to pressure from LGBT activists.
The policy change came after a student debating society invited religious liberty group Alliance Defending Freedom to an event earlier this year.
Following a complaint from Yale’s LGBT group Outlaws, the university announced that it will no longer offer financial support for placements with organisations which hold to traditional views on gender and same-sex relationships.
Senator Cruz said the move was an attempt to “blacklist” organisations like Alliance Defending Freedom and punish Yale students who hold biblical views.
Aaron Haviland criticised the University for “caving” to the demands of the school’s LGBTQ group.
The Yale student asked: “Who is to say that the school will not cave again and start denying admission to conservative applicants?”
Tyson Langhofer, Director of the Alliance Defending Freedom Center for Academic Freedom said: “I think it’s pretty clear that it’s motivated by anti-religious bigotry”.
He added: “Yale is caving to activists and trying to bully religious students and others out of the marketplace of ideas.”
In February, a court ruled that the University of Iowa was wrong to strip a Christian student group of its registered status.
Business Leaders in Christ (BLinC) had been denied official status after refusing to appoint an openly homosexual student in a leadership role.
The judge ruled that the university had violated BLinC’s free speech and religious liberty.