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1 1 (January 3, 2003)

handle is hein.tera/crstax0053 and id is 1 raw text is: Order Code RS20712
Updated January 3, 2003
CRS Report for Congress
Received through the CRS Web
Charitable Choice, Faith-Based Initiatives,
and TANF
Vee Burke
Domestic Social Policy Division
Summary
The 107th Congress did not pass tax incentives for private giving or legislation
intended to assure equal treatment of religious organizations as providers of social
services (provisions in S. 1924, the original CARE bill). The House voted to extend
charitable choice rules to numerous new programs (H.R. 7), as the President urged, but
the Senate refused. However, in an Executive Order, President Bush on December 12,
2002, directed six cabinet-level departments and the Agency for International
Development (AID) to bring policies concerning social service programs into line with
charitable choice principles set forth in the Order. In general, these principles prohibit
discrimination on the basis of religion against an organization seeking to provide
federally funded services and require organizations to provide these services without
regard to the religion of beneficiaries. The House passed H. R. 7 in July, 2001, but the
bill aroused major controversy, especially over religious discrimination in employment
and possible voucherization of social services. Opposition to charitable choice has
brought together a coalition of religious and secular groups who, for different reasons,
want to maintain separation of church and state-the former to protect their independence
and sense of mission, the latter to guard against use of public funds for religious
activities. In two cases concerning a Wisconsin faith-based program for drug addicts
(Faith Works), direct government funding has been found unconstitutional, but indirect
funding (by voucher) has been found constitutional. For background and selected legal
issues on public aid and faith-based groups, 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:
Direct government aid may not be used for sectarian worship, instruction,
or proselytization (Subsection j);
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