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News Release

HHS PROPOSES NEW REGULATIONS FOR FAIR TREATMENT
OF RELIGIOUS GRANTEE ORGANIZATIONS AND THEIR CLIENTS

Carrying out a new step in President Bush's Faith-Based and Community Initiative, the U.S. Department of Health and Human Services today announced proposed regulations to clarify the rights and requirements for religious organizations that use HHS funds in delivering services to needy Americans.

The proposed rules would ensure that religious organizations are treated equally with others when applying for HHS funds, and would also protect them from having to make changes affecting their religious character when using those funds. It would also make clear that organizations must serve all individuals who are eligible for HHS services equally, regardless of their religious affiliation or beliefs.

In addition, the proposed regulations clarify that federal funds may not be used to pay for religious activities, and that persons who are served by federal programs may not be required to take part in those activities. The proposed rules also provide for referrals to alternative providers if an individual objects to an organization's religious character.

"Our goal is to help more faith- and community based organizations learn how they can partner in our programs," said HHS Secretary Tommy G. Thompson. "These organizations will be more willing to work with us if we make it clear how our partnership will work. The rules we are proposing today provide a clear structure, so that religious organizations that want to use HHS funding for service delivery can move ahead with confidence."

The proposed regulations build on HHS efforts earlier this year aimed at smaller faith- and community-based organizations. In October, HHS awarded $30 million to provide technical assistance to smaller faith-based and community organizations that do not have expertise in obtaining or managing federal grants.

"HHS has worked with religious organizations for decades, and they can be among our most effective partners," said Secretary Thompson. "Yet there is so much opportunity for more participation by faith-based organizations, especially smaller organizations. We want to do everything we can to enlist these good soldiers."

Today's proposed regulations carry out the provisions of several laws enacted from 1996 to 2000, known collectively as Charitable Choice legislation. These laws were aimed at assuring that religious organizations are able to compete on an equal footing with non-religious groups for federal grants, without compromising their religious character or beliefs.

The proposed regulations announced today would implement Charitable Choice laws by clarifying:

• Faith-based organizations cannot be excluded from the competition for program funds simply because they are religious.
• Religious organizations that receive federal funds must serve all eligible participants, regardless of those persons' religious beliefs.
• Religious organizations that receive federal funds may continue to carry out their missions consistent with their beliefs. For example, they may maintain a religious environment and religious symbols in their facilities where HHS-supported services are delivered.
• Religious organizations that receive funds from covered programs have a federal right, under existing civil rights law, to take their faith into account in making employment decisions, permitting them to limit hiring to employees who share their religious beliefs.
• Religious organizations may not use direct program funds to support any inherently religious activities (such as worship, religious instruction, or proselytization). Faith-based organizations may still engage in these activities, but they must be offered separately from the programs or services funded with HHS assistance.
• Recipients of HHS-supported services may receive services from a provider to which they have no religious objection. The proposal solicits comment on how best to provide referrals and alternative services, as required by Charitable Choice laws .
• For certain programs, religious organizations must maintain separate accounts for the federal funds they receive.

Charitable Choice laws affect several HHS programs, located in the Administration for Children and Families (ACF) and the Substance Abuse and Mental Health Services Administration (SAMHSA).

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  Note: All HHS press releases, fact sheets and other press materials are available at www.hhs.gov/news.

  Last Revised: December 16, 2002