A divided panel of the 9th Circuit Court of Appeals ruled the Pledge of Allegiance's use of the phrase "under God" to be constitutional. The San Francisco Chronicle reports:
The daily schoolroom ritual is not a prayer, but instead "a recognition of our founders' political philosophy that a power greater than the government gives the people their inalienable rights," said the Ninth U.S. Circuit Court of Appeals in San Francisco in a 2-1 ruling.
"Thus, the pledge is an endorsement of our form of government, not of religion or any particular sect."
The dissenting judge, Stephen Reinhardt, said statements by members of Congress who added "under God" to the pledge in 1954 show conclusively that it was intended to "indoctrinate our nation's children with a state-held religious belief."
In a separate case, the court ruled 3-0 that "In God We Trust" does not constitute an illegal endorsement of religion inscribed on national currency. You can read the pledge decision here. The currency opinion is here.