Yup, it does discriminate based on religious affiliation or persuasion, and all the while taking government money to support itself. A huge no-no in the USA.
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Damn ... That sucks. They're going to have to get rid of all their newborns.
The point was that the BSA resolution is about their members and internally they are free to assert that good citizenship involves having faith. The resolution does not infer that atheists are 'nasty' and 'filthy' and must be kicked out. The author of the article that Sunstone linked infers these.