Administration Signals Changes to Charitable Choice Prpopsals

The Senate Judiciary Committee's hearing on the legal implications of charitable choice legislation was held last Wednesday (June 6th) in the midst of the switch from Republican to Democratic leadership. The hearing adjourned temporarily as the Senate leadership changed, and when it resumed only Sen. Charles Schumer (D-NY), who is not the chair, was present for the remainder of the hearing. The witnesses covered topics and opinions already expressed in the various hearings in the House of Representatives over the past few months. However, there was one important new development: Sen. Rick Santorum (R-PA), who has been the Bush administration's charitable choice point man in the Senate, said he is considering a requirement that religious organizations set up a separate entity under IRC 501(c)(3) to carry out social services under federal grants. This would truly put religious organizations on equal footing with all other 501(c)(3) charities. For text of statements in the Senate hearing click here. In a hearing held the next day before the House Judiciary Subcommittee on the Constitution, Carl Esbeck, Senior Counsel to the Deputy Attorney General, proposed changes to existing charitable choice legislation that would prohibit use of federal funds for religious "instruction, worship or proselytization." Any such activities offered by a religious organization would have to be voluntary and offered separately from the federally funded service. Religious grantees would be required to certify compliance with this provision. Douglas Laycock of the University of Texas Law School testified that the rights of program beneficiaries to secular alternatives for service cannot be protected absent sufficient federal funding for multiple programs, stating "We have not succeeded in guaranteeing even one provider for all the people who need the services. How can we plausibly guarantee a choice of providers?" For full text of the witness testimony in the House hearing click here. The House will address charitable choice issues again on June 14th when the Ways and Means Human Resources and Select Revenue Measure Subcommittees will hold a hearing on HR 7, the Community Solutions Act, the charitable choice bill offered by Rep. J.C. Watts (R-OK) and Rep. Tony Hall (D-OH). That bill also contains charitable giving provisions, such as the nonitemizer deduction. At this time House leadership is pushing for consideration of HR 7, rather than separate charitable giving bills, including the nonitemizer bill sponsored by long time proponent Rep. Phil Crane (R-IL). For OMB Watch's position on charitable choice, click here.
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