This is tough.
Technically, the Bible is part of literature (I agree that the Torah is more, but at least from a secular perspective, which is how law is written). There are many types of literature that kids are exposed to in public school that I wouldn’t want my kids to be exposed to (like recently, kids were expelled for missing a month of school where books showing Toeiva was a regular way of life were read) and the New Testament is just another one. But, I think from a law perspective, it should be allowed.