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1 1 (August 9, 2004)

handle is hein.tera/crstax0056 and id is 1 raw text is: Order Code RS20712
Updated August 9, 2004
CRS Report for Congress
Received through the CRS Web
Charitable Choice, Faith-Based Initiatives,
and TANF
Vee Burke
Domestic Social Policy Division
Summary
After the death of the Charitable Choice Expansion Act of 2001 (Title II of H.R.
7), President Bush issued an executive order directing several Cabinet departments to
adopt charitable choice rules in their social service programs. These rules seek to
promote the use of religious groups as providers of social services while protecting the
religious freedom of beneficiaries. In response to the order, several departments have
made final regulatory changes, and other departments have proposed changes in rules.
For faith-based initiative projects during FY2004, Congress appropriated $103 million
(P.L. 108-199); and for FY2005, the President's budget requests $165 million. The
108th Congress resumed efforts to pass tax incentives for private giving (S. 476, passed
by the Senate, and H.R. 7, passed by the House). However, these bills do not contain
basic charitable choice rules. 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 of religious activity has been found unconstitutional, but indirect
funding (by voucher) has been found constitutional. In a related case, the U.S. District
Court for the District of Columbia on July 2, 2004, found unconstitutional awards made
to AmeriCorps participants who were placed as teachers in sectarian schools and who
engaged in religious instruction and activities during the school day. For legal and
constitutional issues raised by charitable choice, see CRS Report RL32195. 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 basic charitable choice rules:

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