A lawmaker asked inspectors to look at millions given to the university, which has argued it is a religious institution, not an educational one, to justify its ban on an L.G.B.T.Q. club.
The Modern Orthodox Jewish university in Manhattan had said it would halt the activities of all undergraduate clubs rather than sanction the gay student organization. The students say they will delay seeking recognition if the other clubs can resume.
By a 5-to-4 vote, the court refused to block a trial judge’s ruling that required the university to recognize the group under New York City’s anti-discrimination law.