President Bush sent a letter to Senate Majority Leader Tom Daschle (D-SD) and Minority Leader Trent Lott (R-MS) urging them to pass an "Armies of Compassion" bill before the end-of-the-year recess. The letter proposes a scaled-down version of H.R. 7, the controversial version of the faith-based initiative passed by the House earlier this year. (See OMB Watch position on H.R. 7). Bush is urging the Senate to consider three major components:

• Incentives for charitable giving, including the non-itemizer deduction, tax-free contributions from IRA rollovers, deductions for donations of food inventory and Individual Development Accounts to encourage saving by low-income households;
• "Equal treatment" for faith-based and community organizations seeking federal grants, including expedited review of applications for 501(c)(3) status and technical assistance through a "Compassionate Capital Fund;"
• Funds for programs for children with parents in prison.

Sens. Rick Santorum (R-PA) and Joe Lieberman (D-CT) are said to be close to agreement on a revised faith-based bill. Earlier this year they jointly sponsored S. 592, the "Savings Opportunity and Charitable Giving Act of 2001," which would have provided incentives for giving but contained special provisions for religious organizations to receive federal funds. That bill is pending in the Senate Finance Committee, but has not moved. On November 8 an inter-faith group wrote to the President asking him to "reconsider any legislative action" on federal funding for programs run by religious congregations at this time, stating "any action on this issue during this time of increased sensitivities toward the minority faith community will sadly divert the country's attention away from the positive effects of interfaith cooperation and leadership..." The statement was signed by 27 religious organizations representing a wide spectrum of religious affiliations. For more information on the faith-based initiative see OMB Watch's Charitable Choice Page.