We've been in a long slow shift towards privatizing many public services of this kind, so loopholes where religious providers get to choose who does and does not benefit start to add up.
According to this article https://www.heritage.org/civil-society/report/the-role-faith-based-agencies-child-welfare , "Catholic Charities alone provided adoption services to over 82,000 children from 2006–2016.7 These include different types of adoptions including infant, foster care, and inter-country. In 2016 alone, Catholic Charities agencies around the country served around 10,500 children through foster care and adoption services."
That's a lot of children -- a lot of families.
And finally, because the cookie crumbles both ways, an example of faith-based discrimination AGAINST Catholic foster parents:
https://www.usatoday.com/story/news/investigations/2019/06/10/adoption-agencies-latest-front-religious-freedom-fight/1359072001/
The fists here are big, and the noses are unprotected.