The Catholic Diocese of Peoria announced Oct. 6 that it has backed out the legal battle with the state over foster care contracts.

The diocese announced its decision in a press release, published on the Catholic Post website. Equality Illinois confirmed the news and urged the other three charities to follow suit.

Catholic Charities of Peoria, Belleville, Springfield and Joliet sued the state for the right to keep the $30 million contracts. The state declined to offer the charities contracts this year because the charities refused to place children with single parents and same-sex couples, despite new civil union law.

A circuit court judge ruled in August that the charities did not have a property right to the contracts.

The Judge declined to stay his ruling despite an appeal from the charities last month.

The charities have said they would appeal the ruling before the 4th District Appellate Court.