When we talk about “welfare reform” we are talking about a law called “The Personal Responsibility and Work Reconciliation Act of 1996”. This federal law expresses the intent of our Congress to change public welfare policy that had created in many families a financial dependence on the government extending through as many as five generations. This new policy acknowledges that federal and state efforts tended to create a deep-seated poverty rather than financial independence and personal responsibility. This new law endeavors to give a hand-up rather than a handout. Consider the following new provisions:

• There is now a two-year limit on continuous financial assistance.
• There is now a five-year lifetime cap on assistance.
• Able-bodied recipients must participate in job training for employment part-time, to receive aid.
• In some states there is a family cap on the number of children in a family who can receive aid.
• In many states recipients are eligible for daycare and transportation vouchers after they get a job.

A major feature of this new law is the center of my focus in these limited comments. It is referred to as Charitable Choice, a key provision of Section 104 of Public Law 104-193 enacted in 1996. Charitable Choice Is About Three Governmental Goals:

• It seeks to encourage the States, who administer welfare programs, to expand the involvement of community and faith-based organizations in the public anti-poverty effort.
• Through several measures, the religious integrity and character of faith-based organizations, that are willing to accept government contracts and funds to provide services to the needy, are to be assured and protected.
• The religious freedoms of beneficiaries who are willing to receive services from religious organizations are to be safeguarded.

So what about “Separation of Church and State”?

Charitable Choice guidelines actually clarify and codify the constitutional requirements on the issue. Some examples are as follows:

• Charitable Choice does not violate the First Amendment to the Constitution. The government is not aiding or establishing religion, however it is using Faith-based and community organizations to aid and assist those Congress wants to benefit.
• Some might argue that the rights of taxpayers who disagree with the beliefs of Faith-based organizations are being violated because the faith-based Organization is receiving federal revenues to provide welfare services. However, the U.S. Supreme Court has ruled that there is no “free-exercise Right to object when general revenues are used”…to assist beneficiaries by Means of programs that, among others, include faith-based providers.
• In general, there are provisions, which provide those faith-based organizations are to remain autonomous, thus there are specific protections for their autonomy and religious character with regard to their right to develop, maintain, and express their religious beliefs; to maintain their chosen form of internal governance; to operate their personnel policy in accordance with religious environment; and to confine external fiscal audits by segregating federal funds in separate accounts.

While Charitable Choice provisions are designed to reduce the pressures to be secularized, each organization must make its own judgment about the risks and benefits of cooperating with government. In an attempt to protect the beneficiaries themselves, the Charitable Choice regulations require that there be alternative providers of services in the event that individuals object to receiving services from faith-based organizations.

Faith based organizations are concerned about intrusive monitoring by government. Regulations require that state inquiries should be focused on successfully providing a service and if the provider’s program fulfills the purpose under the contract or the expenditure.

Charitable choice is a choice of the State

Charitable Choice does not automatically attach to state’s welfare program. In fact, a state must choose to use federal welfare funds to contract with community or faith-based programs, or to provide vouchers which are redeemable for services with non-governmental social service providers. Once doing so, Charitable Choice requires that states not discriminate against faith-based providers. A state may elect to use federal welfare funds solely through its own governmental agencies, choosing not to contract out any services. Charitable Choice will apply to several programs whenever a state elects to enter into purchase-of-service contracts or voucher agreements with independent-sector organizations under the Temporary Assistance for Needy Families program. This program now replaces what we used to call Aid to Federally Dependent Children programs. Charitable Choice might also apply to SSI, food stamps and Medicaid programs.

A wide range of services can be provided under Charitable Choice

Examples of programs that might conceivably be provided by faith-based programs include job-search, job-readiness and job-skills training programs; community service positions; GED and ESL programs; nutrition and food budgeting advice; second chance or maternity homes for expectant unmarried minors who cannot live with their parents; drug-treatment services; health clinics; or mentoring programs.

Other provisions triggered by Charitable Choice worth mentioning

States may not exclude churches or other overtly religious organizations simply on the basis of religious character.

States with constitutional restrictions may not restrict federal welfare funds even though they can restrict state revenues from faith-based programs.

Faith-based organizations retain their right to control “the definition, development, practice and expression” of their religious convictions.

A faith-based organization may in fact use religious principles as part of contracted services. In counseling beneficiaries’ principles originating in a religious tradition might be used to effect changes in beliefs or attitudes. The key is whether a public purpose is served by the principles being taught.

A state may not dictate the composition of a governing board of a faith-based organization.

Faith-based organizations are exempt from application of Title VII of the Civil Rights Act regarding employment discrimination.