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1 1 (October 21, 2002)

handle is hein.tera/crstax0052 and id is 1 raw text is: Order Code RS20712
Updated October 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
Efforts to pass tax incentives for charitable giving and to assure equal treatment for
non-governmental providers of social services, including religious ones, were renewed
in late September. Provisions of the original CARE bill (S. 1924) were included in a
manager's amendment to the Senate Finance Committee CARE bill (its substitute for
the House-passed H.R. 7) and in a manager's amendment to the Homeland Security bill,
filed September 24. However, when Senator Santorum on that date asked unanimous
consent to proceed on H.R. 7, the Assistant Majority Leader objected, saying some
Senators needed more time. The Charitable Choice Act of 2001 (Title II of the House-
passed 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, the judge ruled 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:

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