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1 1 (May 9, 2003)

handle is hein.tera/crstax0054 and id is 1 raw text is: Order Code RS20712
Updated May 9, 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 108th Congress has resumed efforts to pass tax incentives for private giving (S.
476, passed by the Senate on April 9, and H.R. 7, introduced May 7, 2003). However,
these bills do not contain provisions intended to promote religious organizations as
providers of federally funded social services- charitable choice provisions.. The House
voted in 2001 to extend charitable choice rules, which now apply to a limited set of
programs, to numerous new programs (H.R. 7 in the 107th Congress), 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
2001 aroused maj or 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:
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