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1 1 (February 19, 2002)

handle is hein.tera/crstax0050 and id is 1 raw text is: Order Code RS20712
Updated February 19, 2002

Charitable Choice and TANF
Vee Burke
Domestic Social Policy Division

Summary

A bipartisan group of Senators on February 8 introduced a measure (S. 1924) that
the White House said represented an agreement to move a faith-based initiative out of
the Senate. The House on July 19, 2001, passed legislation (H.R. 7) to expand
charitable choice rules, which forbid discrimination on grounds of religion against a
faith-based organization that seeks to provide federally funded services. However, no one
has sponsored the House bill in the Senate because of controversy about it. S. 1924
omits the most disputed provisions of H.R. 7, but seeks to assure equal treatment for
nongovernmental providers of federally-funded social services. As passed by the
House, the Charitable Choice Act of 2001 (Title II of H.R. 7) would apply its rules,
which are significantly different from those in four existing charitable choice laws, to nine
new program areas. Under charitable choice, if a state or other grantee decides to use
a nongovernmental body to administer a benefit or service, it cannot discriminate against
faith-based organizations that apply to do so, and the religious organization generally is
forbidden to discriminate against a beneficiary on grounds of religion. A large group of
religious, civil rights, civil liberties, and education organizations known as the Coalition
against Religious Discrimination opposes expansion of charitable choice. On January 8,
2002, a federal judge struck down as unconstitutional direct funding for a Wisconsin
faith-based substance abuse treatment program (Faith Works) that she found was
indoctrinating participants in religion. The judge said her decision did not deal with the
constitutionality of the charitable choice section of the 1996 welfare law, which does not
authorize direct funding of religious activities. For background and selected legal issues
on public aid and faith-based organizations, see CRS Report RL31043. This report will
be updated for developments.
Charitable Choice Option in TANF Law. If a state chooses to administer and
provide TANF services or benefits through a contract with a nongovernmental entity or
to provide TANF recipients with certificates or vouchers redeemable with a private entity,
it must allow religious organizations to participate on the same basis as any other
nongovernmental provider without impairing the religious character of the organization
and without diminishing the religious freedom of TANF beneficiaries. The law (Section
104 of P.L. 104-193) imposes the following rules:

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