
Faith-Based Charities Could Receive Federal Funds
by Matt Carter, 2/26/2002
In campaign speeches last summer, both Governor Bush and Vice President Gore have stated that they would remove barriers so that faith-based organizations are fully able to compete for federal funds to provide social services, and would allow religious organizations to use faith-based initiatives and programs in the provision of federally funded services. New legislation may beat them to the punch.
A provision in new community renewal legislation announced May 23rd by the White House and House Speaker Hastert would allow faith-based organizations to receive federal funds for drug counseling and other social services. This is part of the New Markets legislation, which also includes tax credits for those who invest in high poverty areas, creates additional empowerment zones, and create venture capital firms to help small and first-time entrepreneurs.
The bill would allow faith-based organizations that provide drug treatment and prevention programs "to qualify on an equal basis with other nonprofits" for funding. Both the White House and the House leadership say that this bill is consistent with the separation clause of the constitution and the 1996 Welfare Reform Act. In order to receive federal funds, the faith-based charities must have a three year success record, as a safeguard against unqualified charities getting money.
It is not entirely clear how the New Markets legislation will allow for faith-based treatment without violating the separation clause of the First Amendment.
The bill is expected to come to the House floor in mid-June
