OMB Watch has written to Senate leaders supporting passage of the modified CARE Act. See the full text of the letter. On March 27 Senator Rick Santorum (R-PA) announced that Republican Senators have agreed to drop the portion of the Charity Aid Recovery and Empowerment Act (CARE) aimed at making it easier for religious organizations to get government grants. The remainder of the bill addresses tax incentives for charitable giving, simplifies the rules for charity lobbying and restores funding for Title XX of the Social Service Block Grant. Santorum said House Republicans have agreed to a scaled back bill. This means the CARE Act is likely to go forward in the Senate soon, and that issues relating to grant rules for religious organizations will be debated in reauthorization legislation, such as Temporary Assistance to Needy Families, or appropriations of specific programs. Senator Santorum and Senator Joe Lieberman (D-CT) had planned to offer their compromise faith-based bill as an amendment to the version passed by the Senate Finance Committee earlier this year. However, continued controversy over the terms of funding for religious organizations was blocking progress on the bill. Although the CARE Act's provisions on grant rules did not specifically address religious discrimination issues or ban proselytization, its silence would likey have been interpreted as an endorsement of the President's Executive Order 13279, issued last December, which implements to most controversial elements of the President's agenda. Subsequent regulations proposed by the Department of Health and Human Services and the Department of Housing and Urban Development have extended the administration's agenda even further. In his press statement, Senator Santorum said that the Bush administration's actions had made legislation less urgent. However, Jim Towey, head of the White House Office of Faith-Based and Community Initiatives said there would be a continued push for legislation in other bills, saying "There are going to be debates this year on faith-based (issues). You can set your watch on that." For background information see summary of CARE and OMB Watch Comments on HHS proposed rules on charitabale choice.