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1 1 (August 21, 2002)

handle is hein.tera/crstax0051 and id is 1 raw text is: Order Code RS20712
Updated August 21, 2002
CRS Report for Congress
Received through the CRS Web
Charitable Choice, Faith-Based Initiatives,
and TANF
Vee Burke
Domestic Social Policy Division
Summary
The Senate Finance Committee version of H.R. 7, approved on July 16, 2002, does
not contain the charitable choice title of the House-passed H.R. 7; nor does it include
a compromise faith-based provision (from S. 1924 as introduced) that sought to assure
equal treatment for nongovernmental providers of almost all federally-funded social
services. Remaining in the Senate Finance bill are tax incentives to promote private
giving. The Charitable Choice Act of 2001 (Title II of the House bill) would apply its
rules, which are significantly different from those in four existing charitable choice laws,
to nine new program areas. The House bill has aroused dispute, especially over possible
voucherization of social services and employment discrimination. 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 government funding for
a Wisconsin faith-based substance abuse treatment program (Faith Works) that she
found was indoctrinating participants in religion. Later, on July 26, 2002, thejudge ruled
on a second issue in the Faith Works case. She held that a contract between the
Wisconsin Department of Corrections (DOC) and Faith Works for residential treatment
services to offenders did not violate the Establishment Clause because government funds
were received only when individual offenders chose to receive treatment there. For
background and selected legal issues on public aid and faith-based organizations, see
CRS Report RL31043. For a summary of the House-passed H.R. 7, see CRS Report
RS20948. 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:
Direct government aid may not be used for sectarian worship, instruction,
or proselytization (Subsection j);
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