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Order Code RL31030

CRS Report for Congress
Received through the CRS Web

Comparison of Proposed Charitable Choice Act of
2001 with Current Charitable Choice Law

June 22, 2001

Vee Burke
Specialist in Social Legislation
Domestic Social Policy Division

Congressional Research Service ~ The Library of Congress
Comparison of Proposed Charitable Choice Act of 2001
with Current Charitable Choice Law

Summary
This report provides a side-by-side comparison (Table 1) of the charitable
choice provisions of H.R. 7 with those of the 1996 welfare reform law (P.L. 104-193)
and of later laws that extended charitable choice rules to the Community Services
Block Grant Act (P.L. 105-285) and to substance abuse treatment and prevention
services under the Public Health Service Act (P.L 106-310 and P.L. 106-554).1

Common Provisions. The Charitable Choice Act (Title II of H.R. 7) and the
four existing charitable choice laws provide that participating religious organizations
shall retain their independence from government, including control over the
definition, development, practice, and expression of their religious beliefs. All
prohibit government from requiring religious organizations to alter their form of
internal governance, or to remove religious art, icons, scripture, or other symbols; all
provide that the exemption of religious organizations under Section 702 of the Civil
Rights Act regarding hiring and firing is not affected by their participation in, or
receipt of funds from programs covered by charitable choice. With one exception
(Community Services Block Grant Act) all five measures provide that if a beneficiary
or applicant objects to the religious character of the organization providing help, an
alternate and accessible provider must be made available. With the same exception,
all measures forbid a religious organization from discriminating against a beneficiary
or applicant on the basis of religion or religious belief. All charitable choice
measures place limits on use of federal funds for sectarian activities. In general, they
prohibit use of funds provided directly to a faith-based organization (by contract or
grant) for sectarian worship, instruction, or proselytization. With one exception (the
1996 welfare law) all measures require religious organizations to segregate
government funds into a separate account and stipulate that the government may
audit only the government funds.

Differing Provisions. Two of the laws (the 1996 welfare law and one of the
substance abuse measures) prohibit discrimination by a faith-based provider against
a beneficiary for refusal to actively participate in a religious practice -- prohibiting
denial of services for this refusal. H.R. 7 does not contain this prohibition. H.R. 7
alone explicitly allows a faith-based provider, notwithstanding any other law, to
require its employees to "adhere to its religious practices." H.R. 7 and the two
substance abuse measures require the government to notify beneficiaries and
applicants of their right to an alternate provider. The 1996 welfare reform law is the
only measure to state that its charitable choice provisions do not preempt any
provision of state law that prohibits or restricts spending of state funds in or by
religious organizations.

1
The major substantive difference between P.L. 106-310 and P.L. 106-554 is that the latter
requires states to accept training provided to personnel by religious organizations if the
training is substantially equivalent to credit-eligible training provided by nonreligious
organizations and if the organization has a record of successful drug treatment for the
preceding 3 years.
Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Major Arguments of Supporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Major Arguments of Opponents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Programs Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Inclusion of Religious Organizations as Nongovernmental Providers . . . . . . . . . 7

Requirement for Consistency with the First Amendment to the Constitution . . . . 8

Prohibition on Discrimination Against Religious Organizations . . . . . . . . . . . . . 9

Funds Not Construed to Be Aid to Religious Organization . . . . . . . . . . . . . . . . . 10

Funds Not Construed to Be Endorsement of Religion . . . . . . . . . . . . . . . . . . . . . 11

Religious Character and Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Employment Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Rights of Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Nondiscrimination Against Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Limitation on Use of Funds for Sectarian Activities . . . . . . . . . . . . . . . . . . . . . 20

Fiscal Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Treatment of Intermediate Contractors (Nongovernmental Organizations
Acting under Contract or Other Agreement with a Government Entity) . . 22

Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Preemption of Other Law? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

List of Tables
Table 1. Comparison of Charitable Choice Act of 2001 with Current
Charitable Choice Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Comparison of Proposed Charitable
Choice Act of 2001 with Current
Charitable Choice Law
Background
Charitable choice is a set of provisions in law intended to allow religious
organizations to provide federally funded services from specifically named programs
on the same basis as any other nongovernmental provider without impairing the
religious character of the organizations or the religious freedom of recipients.
Charitable choice does not contain special funding for faith-based organizations and
it applies only to programs designated by Congress.

The 1996 welfare reform law (P.L. 104-193) put the first charitable choice
language into federal law, applying it to the block grant program of Temporary
Assistance for Needy Families (TANF).2 In 1998, Congress extended charitable
choice rules to grants under the Community Services Block Grant Act (P.L. 105-285)
and, in 2000, to grants for prevention and treatment of substance abuse under the
Public Health Service Act (P.L. 106-310 and P.L. 106-554).

The 2000 Republican platform proposed to apply charitable choice to all federal
social service programs. In their 2000 platform, Democrats said they believed that
faith-based programs should augment -- not replace -- government programs. H.R.
7 proposes to apply charitable choice rules, somewhat modified from those of the
TANF law, to 11 program areas and activities. TANF's charitable choice rules apply
to a wide range of activities, some of which may overlap with activities listed in H.R.
7.

Sponsored by Representative Watts and introduced on March 29 as the
Community Solutions Act of 2001, H.R. 7 was referred to the Committees on Ways
and Means and the Judiciary. The measure embodies two major components of
President Bush's faith-based initiative -- namely, tax incentives to expand private
giving (Title I) and expansion of charitable choice. (Title III proposes a permanent
program of Individual Development Accounts, financed with tax credits.) The H.R.
7 charitable choice proposal has resulted in several congressional hearings (the first
ever conducted on charitable choice) and has aroused much controversy. As of June
25, the Charitable Choice Act had not been introduced in the Senate.

2
The 1996 law also applied charitable choice rules to food stamps, Medicaid, and
Supplemental Security Income -- to the extent that they use contracts or vouchers.
CRS-2

Major Arguments of Supporters
! To fund only secular programs discriminates against religious
programs. It is just as inappropriate for government to favor non-
religion as to promote one religion over another.
! Faith-based programs can attract large amounts of volunteer time;
staff have a sense of mission that inspires those they serve; these
organizations often help in ways that government cannot, providing
love as well as services, guidance and friendship as well as a meal
or training.
! Charitable choice has been carefully written to protect constitutional
values.
! Charitable choice rules protect the religious character of faith-based
providers. they specify that religious organizations shall retain
control over the definition, development, practice, and expression of
their religious beliefs.
! Charitable choice rules protect the religious liberty of beneficiaries;
they require that if a recipient objects to the religious character of the
provider, the government must provide an alternate and accessible
provider.

Major Arguments of Opponents
! Charitable choice may lead to unconstitutional use of government
funds to promote a specific religious practice or belief.
! Since money is interchangeable, government funds given for a
secular purpose could indirectly help to fund the organization's
religious purposes, undermining governmental neutrality toward
religion.
! Charitable choice rules would require government to decide what is
a legitimate religion and what is not, what is preaching and what is
not.
! Direct government grants to religious groups could make churches
dependent on government, eroding their mission and tending to
secularize them.
! Charitable choice promotes government-funded discrimination by
allowing religious organizations that receive federal dollars for their
services to hire and fire on the basis of religious beliefs.
CRS-3

Table 1. Comparison of Charitable Choice Act of 2001 with Current Charitable Choice Law

Community Renewal
Community Services Children's Health Act Tax Relief Act (H.R.
Charitable Choice Act P.L. 104-193 Block Grant Act (Title (Title XXXIII of 5662), enacted as part
Title II of H.R. 7 (Welfare Reform) II of P.L. 105-285) P.L. 106-310) of P.L. 106-554

Title

Provision of assistance Services provided by Religious organizations Nondiscrimination and Prevention and
under government charitable, religious, or included as institutional safeguards treatment of substance
programs by religious private organizations. nongovernmental for religious providers. abuse; services
and community [Section 104] providers. provided through
organizations. [Section 3305, as titled religious organizations.
[Section 679, as titled above, added to Title
Would enact a new above, was added by XIX of Public Health [Section 144 , Subtitle
Section 1994A in Title Section 201 to the Service Act a new E, of H.R. 5662, added
XXIV of the Revised Community Services Section 1955.] to Title V of Public
Statutes. Block Grant Act.] Health Service Act a
[Section 201] new Part G, entitled
"services provided
through religious
organizations."]

Short Title

Charitable Choice Act of None None None None
2001. [Section
1994A(a)]
CRS-4

Purposes

(1) To provide assistance To allow states to No statement of To prohibit To allow religious
to needy individuals and contract with religious purpose. discrimination against organizations to be
families in the most organizations (and to nongovernmental program participants
effective and efficient allow religious organizations and on the same basis as
manner; organizations to accept certain individuals on any other nonprofit
(2) To prohibit certificates, vouchers, the basis of religion in private provider
discrimination against or any other forms of the distribution of without impairing the
religious organizations disbursement) under government funds to religious character of
on the basis of religion in any covered program on provide substance the organizations and
the administration and the same basis as any abuse services under without diminishing
distribution of other nongovernmental this Title (XIX) and the religious freedom
government assistance provider -- without Title V, and the receipt of program
under covered programs; impairing the religious of services under these beneficiaries. [Section
(3) To allow religious character of the titles; and to allow the 582(b)]
organizations to assist in organizations, and organizations to accept
the administration and without diminishing the the funds to provide
distribution of assistance religious freedom of services without
without impairing their beneficiaries. [Section impairing the religious
religious character; and 104(b)] character of the
(4) To protect the organizations or the
religious freedom of religious freedom of
those in need who are the individuals.
eligible for government [Section 1955(a)]
aid, including expanding
the possibility of their
choosing to receive
services from a religious
organization. [Section
1994A(b)]
CRS-5

Programs Covered

A program using federal Temporary Assistance Any program carried Any program Discretionary and
funds that carries out for Needy Families out by the federal providing substance formula grant
activities that are: (TANF) and Welfare- government or by a abuse services under programs (Titles 5 and
-- related to the to-Work grants. state or local Title 19 (formula block 19, respectively)
prevention and treatment government under the grants) and Title 5 administered by the
of juvenile delinquency Any other program Community Services (discretionary grants) Substance Abuse and
and the improvement of modified or established Block Grant program. of the Public Health Mental Health Services
the juvenile justice under Titles I or II of [Section 679(a)] Service Act. [Section Administration that
system, including those P.L. 104-193 that 1955(a)(1)] award financial
funded under the permits contracts with assistance to public or
Juvenile Justice and organizations or permits private entities to carry
Delinquency Prevention certificates, vouchers, out activities to prevent
Act; or other forms of or treat substance
-- related to prevention disbursement to be abuse. [Section 581]
of crime, including provided to
programs funded under beneficiaries, as a
Title I of the Omnibus means of providing aid.
Crime Control and Safe [Section 104 (a)(2)]
Streets Act;
-- under federal housing These programs are
laws; food stamps, Medicaid,
-- under Title I of the and Supplemental
Workforce Investment Security Income (SSI)
Act; -- to the extent that
-- under the Older they are administered
Americans Act; through contracts or
-- under Child Care and vouchers with
Development Block nongovernmental
Grant (CCDBG) Acta agencies. They
CRS-6

(see endnote for existing generally are
law and regulations administered directly by
governing religious public agencies, and
providers of CCDBG federal law requires that
funds); eligibility for Medicaid
-- under the Community and food stamps be
Development Block determined by a public
Grant; official. Food stamps
-- related to the and Medicaid allow
intervention in and states to use private
prevention of domestic organizations, including
violence; religious ones, in
-- under the Job Access providing services.
and Reverse Commute
grant program under the
Federal Transit Act; and
-- to assist students
obtain equivalents of
secondary school
diplomas and activities
relating to non-school-
hour programs.
Note: Activities carried
out under federal
programs providing
education to children
eligible to attend
elementary or secondary
schools are not covered
-- unless they are
provided under one of
the above-listed
CRS-7

authorities or are
diploma-equivalent or
non-school-hour
programs. Section
1994A(c)(4)]

Inclusion of Religious Organizations as Nongovernmental Providers

For a covered program Authorizes states (1) to For a covered program A state that chooses to Notwithstanding any
carried out by the federal administer and provide carried out by the use nongovernmental other provision of law,
government, or by a state services under covered federal government, or organizations to a religious organization
or local government with programs through by a state or local provide services under may receive financial
federal funds, the contracts with government with federal a covered program assistance and be a
government shall charitable, religious, or funds, the government shall consider religious provider of services
consider religious private organizations, shall consider religious organizations on the under a covered
organizations on the and (2) to provide organizations on the same basis as other program on the same
same basis as other non- beneficiaries of covered same basis as other nongovernmental basis as any other
governmental programs with nongovernmental entities, subject to the nonprofit private
organizations, subject to certificates, vouchers, organizations, subject to provision immediately provider. [Section
provision immediately or other forms of provision immediately below. [Section 582(a)]
below. [Section disbursement below. [Section 679(a)] 1955(b)(2)]
1994A(c)(1)(A)] redeemable with
charitable, religious, or
private organizations.
[Section 104(a)(1)]
CRS-8

Requirement for Consistency with the First Amendment to the Constitution

The nondiscrimination If a state uses this The nondiscrimination The nondiscrimination The nondiscrimination
provision above applies authority, religious provision above applies provision above provision above
if the program is organizations are so long as the program applies so long as the applies as long as the
implemented in a manner eligible, on the same is implemented in a programs are programs are
consistent with the basis as any other manner consistent with implemented in a implemented
Establishment and Free private organization, to the Establishment manner consistent with consistent with the
Exercise Clauses of the be contractors, or to Clause of the first the Establishment Establishment and the
first amendment to the accept certificates, amendment to the Clause of the first Free Exercise Clauses
Constitution. vouchers, or other Constitution. [Section amendment to the of the first amendment
[Section forms of disbursement 679(a)] Constitution. [Section to the Constitution.
1994A(c)(1)(A)] under a covered 1955(b)(2)] [Section 582(c)]
program -- so long as
the program is
implemented consistent
with the Establishment
Clause of the first
amendment to the
Constitution.
[Section104(c)]
CRS-9

Prohibition on Discrimination Against Religious Organizations

Neither the federal Unless state law forbids Same as H.R. 7. Same as H.R. 7. Same as H.R. 7.
government, nor a state or restricts spending of [Section 679(a)] [Section 1955(b)(2)] (Section 582 (c)(2)]
or local government state funds by religious
receiving funds under a bodies, neither the
covered program may federal government nor
discriminate against an a state receiving funds
organization that under a covered
provides assistance or program may
applies to provide discriminate against an
assistance under the organization that is or
program, on the basis applies to be a
that the organization has contractor or that
a religious character. accepts certificates,
[Section1994A(c)(1) vouchers, or other
(B)] forms of disbursement,
on the basis that the
organization has a
religious character.
[Section 104(c)]
CRS-10

Funds Not Construed to Be Aid to Religious Organization

Federal, state, or local No provision No provision No provision No provision
government funds or
other assistance received
by a religious
organization for the
provision of services
under this Act constitutes
aid to needy individuals
and families, the ultimate
beneficiaries of the
services, and not aid to
the religious
organization. [Section
1994A(c)(2)]
CRS-11

Funds Not Construed to Be Endorsement of Religion

The receipt by a religious No provision No provision No provision No provision
organization of federal,
state, or local
government funds or
other assistance under
this Act is not and should
not be perceived as an
endorsement by the
government of religion
or the organization's
religious beliefs or
practices. [Section
1994A(c)(3)]

Religious Character and Independence

Control over A religious organization A religious organization A religious organization A religious Any religious
religious practices that provides assistance having a contract with a that provides assistance organization that organization that is a
under a covered program covered program or under a covered provides services under program participant
shall retain its autonomy which accepts program shall retain its a covered program shall retain its
from federal, state, and certificates, vouchers, religious character and shall retain its independence from
local governments, or other forms of control over the independence from federal, state, and local
including its control over disbursement under a definition, development, federal, state, or local government, including
the definition, covered program, practice, and expression governments, including its control over the
development, practice, retains its independence of its religious beliefs. its control over the definition,
and expression of its from federal, state, and [Section 679(b)(1)] definition, development, practice,
religious beliefs. local governments, development, practice, and expression of its
[Section 1994A(d)(1)] including its control and expression of its religious beliefs.
CRS-12

over the definition, religious beliefs. [Section 582(d)(1)]
development, practice, [Section 1955(c)(1)]
and expression of its
religious beliefs.
[Section 104(d)(1)]

Religious symbols Neither the federal Neither the federal Neither the federal Neither the federal nor Neither the federal
government nor a state or government nor a state government nor a state a state or local government nor a state
local government shall may require a religious may require a religious government shall shall require a religious
require a religious organization to alter its organization to alter its require a religious organization to alter its
organization to alter its form of internal form of internal organization to alter its form of internal
form of internal governance, or to governance, except (for form of internal governance or remove
governance; or to remove remove religious art, purposes of governance or to religious art, icons,
religious art, icons, icons, scripture, or other administration of the remove religious art, scripture, or other
scripture, or other symbols in order to be community services icons, scripture, or symbols. [Section
symbols because they are eligible to contract to block grant program) as other symbols in order 582(d)(2)]
religious, in order to be provide assistance or to provided in Section to be eligible to
eligible to provide accept certificates, 676B; or to remove provide services under
assistance under a vouchers, or other religious art, icons, any covered program.
covered program. forms of disbursement scripture, or other [Section 1955(c)(2)]
[Section 1994A(d)(2)] funded under a covered symbols in order to be
program. [Section eligible to provide
104(d)(2)] services under a covered
program. [Section
679(b)(2)]
CRS-13

Employment Practices

Civil Rights The exemption of a A religious The exemption of a The exemption of a The exemption of a
exemption religious organization organization's religious organization religious organization religious organization
under Sections 702 or exemption under under Section 702 of the under Sections 702 or under Section 702 of
703(e)(2)b of the Civil Section 702 of the Civil Civil Rights Act 703(e)(2) regarding the Civil Rights Act
Rights Act regarding Rights Act regarding regarding employment employment practices shall not be affected by
employment practices is employment practices is practices shall not be shall not be affected by its participation in, or
not affected by its not affected by its affected by its its provision of receipt of funds from, a
provision of assistance participation in, or participation in, or services under, or covered program.
under, or receipt of funds receipt of funds, from receipt of Community receipt of funds from [Section 582(e)]
from, a covered program. covered programs. Block Grant Act funds. any covered program.
[Section 1994A(e)(2)] [Section 104(f)] [Section 679(b)(3)] [Section 1955(d)(2)]

Application of other Nothing in this Act alters Nothing in the No program or activity No provision Nothing in this section.
laws forbidding the duty of a religious charitable choice funded under the shall be construed to
discrimination organization to comply provisions of P.L. 104- Community Services modify or affect any
with federal laws 193 is to be construed to Block Grant Act may other federal or state
prohibiting preempt a provision of a discriminate against a law or regulation
discrimination on the state constitution or law person on the basis of relating to
basis of: race, color, or that prohibits or race, color, national discrimination in
national origin (Title VI restricts spending of origin, or sex. employment. [Section
of the Civil Rights Act); state funds in or by Programs are subject to 582(e)]
sex, blindness, or visual religious organizations. rules against
impairment (Title IX of [Section 104(k)] discrimination on the Note: Title 19 of the
the Education basis of age or disability Public Health Service
CRS-14

Amendments of 1972); (Age Discrimination Act says that on
disabilities (of otherwise Act, Section 504 of the grounds of religion, no
qualified persons) Rehabilitation Act, and person shall be
(Section 504 of the Title II of Americans excluded from, denied
Rehabilitation Act); or with Disabilities Act). benefits of, or
age (Age Discrimination [Section 678F(c)(1)] subjected to
Act). [Section discrimination under
1994A(e)(3)] any program or activity
receiving substance
abuse formula grant
funds. [Section
1947(a)(2) of Public
Health Service Act.]
Tenets and religious Notwithstanding any No provision No provision A religious No provision
practices other provision of law, a organization that
religious organization provides services under
that provides assistance a covered substance
under a covered program abuse program may
may require that its require that its
employees adhere to its employees adhere to
religious practices. rules forbidding the use
[Section 1994A(e)(1)] of drugs or alcohol.
[Section 1955(d)(1)]

Educational No provision No provision No provision No provision In determining whether
requirements for personnel of a religious
personnel of organization with a
religious record of successful
organizations drug treatment for the
preceding 3 years have
CRS-15

satisfied state or local
requirements for
education and training,
a state or local
government shall not
discriminate against
education and training
provided to personnel
by a religious
organization, so long
as it includes basic
content substantially
equivalent to the
content of credit-
eligible training
provided by
nonreligious
organizations. [Section
584(b)]
CRS-16

Rights of Beneficiaries

Right to alternative If a beneficiary or If a beneficiary of, No provision If a beneficiary or If a beneficiary or
provider applicant has an applicant for, or a applicant has an applicant objects to the
objection to the religious person who requests to objection to the religious character of a
character of the apply for assistance religious character of provider, the faith-
organization providing under a covered the organization based provider must
assistance, the program has an providing services, the refer the person to
appropriate objection to the appropriate services (provided by
governmental entity must religious character of governmental entity the governmental unit
provide, within a the organization or must provide, within a that administers the
reasonable period of institution providing reasonable period of program) from an
time, assistance from an assistance, the state in time, services from an alternative and
accessible and alternate which the person alternative and accessible provider
provider that is at least resides, must provide, accessible provider with a value at least
equal in value to the aid within a reasonable with a value at least equal to that of
that would have been period of time, equal to that of services that would
received from the assistance from an services that would have been received
religious organization. accessible and have been received from the religious
[Section 1994A(f)(1) and alternative provider from the religious organization. The
(3)] with a value at least organization. [Section faith-based
equal to that of the 1955(e)(1)] organization must
assistance that would notify the government
have been received agency that administers
from the religious the program about its
organization. [Section referral. [Section
104(e)] 582(f)(1)]
Before making the
referral, the faith-based
organization must
CRS-17

consider any list that
state or local
government makes
available of entities in
the area that provide
program services. The
faith-based
organization must
ensure that the
beneficiary makes
contact with the
alternative provider.
[Section 582(f)(3)]
CRS-18

Notice of beneficiary The appropriate federal, No provision No provision The appropriate Program participants
right to alternative state or local governmental entity (including faith-based
provider governmental entity must must guarantee that organizations), public
guarantee that notice of notice of beneficiary agencies that refer
beneficiary rights to rights to service from persons to covered
service from an an alternate provider is programs, and the
alternative provider is given to beneficiaries governments that
given to beneficiaries or or applicants for administer covered
applicants for assistance assistance under a programs or are
under a covered program. covered program. program participants
[Section 1994A(f)(2) and [Section 1955(e)(2) must ensure that notice
(3)] and (3)] of their rights to
service from an
alternative provider is
given to beneficiaries
or prospective
beneficiaries. Section
582(f)(2)
CRS-19

Nondiscrimination Against Beneficiaries

A religious organization Except as otherwise No provision A religious A religious
providing assistance provided in law, a organization providing organization shall not
through a grant or religious organization services through a discriminate against a
contract under a covered shall not discriminate grant, contract, or program beneficiary or
program shall not against a person in cooperative agreement prospective beneficiary
discriminate, in carrying giving assistance under under any covered on the basis of religion
out the program, against any covered program on program shall not or religious belief in
a beneficiary or applicant the basis of religion, a discriminate against a providing services or
on the basis of religion, a religious belief, or beneficiary or engaging in outreach
religious belief, or refusal to actively applicant on the basis activities under
refusal to hold a religious participate in a religious of religion, a religious covered programs.
belief. [Section practice. [Section belief, a refusal to hold [Section 582(f)(4)]
1994A(g)(1)] 104(g)] a religious belief, or a
refusal to actively
A religious organization participate in a
providing assistance religious practice.
through a voucher, [Section 1955(f)]
certificate, or other form
of indirect disbursement
under a covered program,
shall not discriminate, in
carrying out the program,
against a beneficiary or
applicant on the basis of
religion, religious belief,
or refusal to hold a
religious belief. [Section
1994A(g)(2)]
CRS-20

Limitation on Use of Funds for Sectarian Activities

No funds provided No funds provided No funds provided No funds provided No funds provided
through a grant or directly to institutions directly to a religious through a grant or under a covered
contract to a religious or organizations to organization to provide contract to a religious program shall be spent
organization for provide services and assistance under any organization to provide for sectarian worship,
assistance under a administer programs covered program shall services under any instruction, or
covered program may be may be spent for be spent for sectarian covered program shall proselytization.
spent for sectarian sectarian worship, worship, instruction, or be spent for sectarian [Section 583]
worship, instruction, or instruction, or proselytization. [Section worship, instruction, or
proselytization. proselytization. [Section 679(c)] proselytization.
[Section1994A(i)] 104(j)] [Section 1955(i)]
[Note: This prohibition
Each recipient does not apply in cases
organization must file a of assistance provided
signed certificate to individuals through
providing assurance that certificates, vouchers,
it will comply with the or other forms of
above rule. [Section disbursement
1994A(i)] redeemable at
charitable, religious, or
private organizations.]
CRS-21

Fiscal Accountability

Effect on State and If a state or local No provision No provision Same as H.R. 7. No provision
Local Funds government contributes [Section 1955(j)]
funds to carry out a
covered program, the
state or local government
may segregate its funds
from the federal funds
provided for the program
or may commingle its
funds with federal funds.
If funds are commingled,
the provisions of this Act
apply in the same
manner, and to the same
extent, as they apply to
federal funds.
[Section 1994A(j)]
CRS-22

Treatment of Intermediate Contractors (Nongovernmental Organizations Acting under
Contract or Other Agreement with a Government Entity)

If an intermediate No provision If an eligible entity or If an intermediate No provision
contractor is given other organization organization is given
authority to select (referred to here as an authority to select
nongovernmental "intermediate nongovernmental
organizations as organization"), is given organizations to
subcontractors to provide authority under a provide services under
assistance under a contract or agreement to any covered program,
covered program, the select nongovernmental the intermediate
intermediate contractor organizations to provide organization shall have
has the same duties under assistance under the same duties under
this Act as the covered programs, the this section as the
government when intermediate government but shall
selecting or otherwise organization shall have retain all other rights of
dealing with the same duties under a nongovernmental
subcontractors; but, if the this section as the organization under this
intermediate contractor government. section. [Section
is a religious [Section679(e)] 1955(k)]
organization, it retains
all other rights of a
religious organization
under this Act. [Section
1994A(k)]
CRS-23

Compliance

A party alleging that a Any party which seeks No provision Any party that seeks to A religious
state or local government to enforce its rights enforce its rights under organization may
has violated its rights under the Charitable this section may assert obtain review of
under this Act may bring Choice provisions of a civil action for agency action in
a civil action in state P.L. 104-193 may assert injunctive relief federal court in
court against the official a civil action for exclusively in an accordance with
or government agency injunctive relief appropriate federal or Chapter 7 of Title 5,
that has allegedly exclusively in an state court against the United States Code.
committed the violation. appropriate state court entity, agency, or [Section 582(h)]
A party alleging that the against the entity or official that allegedly
federal government has agency that allegedly commits the violation.
violated its rights under commits the violation. [Section 1955(h)]
this Act may bring a civil [Section 104(i)]
action for appropriate
relief in an appropriate
federal district court
against the official or
government agency that
allegedly committed the
violation.
[Section1994A(l)]
CRS-24

Preemption of Other Law?

No provision Nothing in the No provision No provision No provision
charitable choice
provisions of P.L. 104-
193 is to be construed to
preempt a provision of a
state constitution or law
that prohibits or
restricts spending of
state funds in or by
religious organizations.
[Section 104(k)]

a
Under the CCDBG, religious providers may receive funding on the same basis as nonsectarian providers. However, religious providers may use funds for
construction (generally disallowed for other providers) to the extent needed to bring facilities into compliance with health and safety standards. Use of
CCBDG funds for religious activities, including sectarian worship or instruction, generally is prohibited; but this prohibition does not apply to funds received
by providers in the form of child care certificates, if the sectarian services are freely chosen by the parent. Providers may not discriminate in admissions
against a child on the basis of religion, with the exceptions of family child care providers and providers who receive CCDBG funds in the form of child care
certificates. However, sectarian providers may reserve unsubsidized slots for children whose families regularly participate in their organization's activities,
unless 80% or more of their operating budget comes from federal or state funds, including child care certificates. In their employment practices, providers
may not discriminate on the basis of religion if the employee's primary duties are to give child care. However, in considering two or more qualified
applicants, sectarian providers may give preference to a person who regularly participates in the organization `s activities. Also, sectarian organizations may
require employees to adhere to their religious tenets or teaching and to rules forbidding the use of drugs or alcohol, unless 80% or more of their operating
budget comes from federal or state funds. See CRS Report RL30785, The Child Care and Development Block Grant: Background and Funding, by Alice
Butler and Melinda Gish.
b
It appears that provisions of Section 703(e)(2) of the Civil Rights Act are subsumed by Section 702.

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