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A federal appeals court upheld the use of the words "under God" in the Pledge of Allegiance and "In God We Trust" on U.S. currency, rejecting arguments Thursday that the phrases violate the separation of church and state.

The San Francisco-based 9th U.S. Circuit Court of Appeals panel rejected the legal challenges by Sacramento, Calif., atheist Michael Newdow, who said the references to God are unconstitutional and infringe on his religious beliefs.

Judge Carlos Bea, who was appointed by President George W. Bush in 2003, wrote for the majority in Thursday's 2-1 ruling on the pledge.

"The Pledge of Allegiance serves to unite our vast nation through the proud recitation of some of the ideals upon which our Republic was founded," he said.

Bea noted that schools do not require students to recite the pledge, which was amended to include the words "under God" by a 1954 federal law. Members of Congress at the time said they wanted to set the United States apart from "godless communists."

A panel from the same appeals court caused a national uproar and prompted accusations of judicial activism in 2002 when it decided in Newdow's favor, ruling that the pledge violated the First Amendment prohibition against government endorsement of religion.

That ruling was overturned by the Supreme Court on technical reasons.

Judge Stephen Reinhardt, who was part of the three-judge panel that ruled in Newdow's favor eight years ago, wrote a 123-page dissent to Thursday's 60-page majority opinion.

"Under no sound legal analysis adhering to binding Supreme Court precedent could this court uphold state-directed, teacher-led, daily recitation of the 'under God' version of the Pledge of Allegiance by children in public schools," wrote Reinhardt, who was appointed by President Jimmy Carter in 1980.

Newdow, a doctor and attorney, told The Associated Press he would ask the appeals court to rehear the case. If it rejects that request, Newdow said he'll appeal to the U.S. Supreme Court.

Newdow, however, said he isn't optimistic the Supreme Court will agree to hear the case because the justices will likely be reluctant to hear a case that could invalidate the pledge.

In a separate 3-0 ruling Thursday, the appeals court upheld the inscription of the national motto "In God We Trust" on U.S. coins and currency, saying that the phrase is ceremonial and patriotic, not religious.
 
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