From federal suits to administrative action, Bush’s faith-based initiative remains in the public spotlight. Action Taken by the Supreme Court on Government Funded Religion The Supreme Court, on Feb. 25, 2004, ruled in favor of the state of Washington in a major challenge to limits on government-funded religion. In the case of Locke v. Davey, the Court held that Washington’s exclusion of a devotional theology degree from its Promise Scholarship program does not violate the First Amendment’s Free Exercise Clause.

The Internal Revenue Service (IRS) announces online filing for Form 990. The IRS is set to accept online submissions of Form 990, the annual report filed by nonprofits, beginning in March. The IRS has made online filing of nonprofit financial reports a top priority because of the increased scrutiny by Congress, the media and others. The eventual goal is to have most 990s filed electronically, and the information made available to the public in a searchable database. Benefits of filing Form 990 electronically for nonprofits include:

• reduction of the paperwork burden,

Evidence emerges that faith-based charities are not discriminated against, but instead they are being favored. Last Tuesday during his State of the Union address, President Bush urged Congress to open up billions of dollars in grant money to competition that includes faith-based charities. In doing so he states, "Tonight I ask you codify this into law, so people of faith can know that the law will never discriminate against them again."

The Supreme Court heard oral arguments on a case that raises the issue of whether state scholarship aid can be used for religious training. In the same week, White House Faith-Based Office Director Jim Towey says “fringe” religions should be ineligible for federal grants.