Temporary Assistancefor Needy Families Information Memorandum |
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No. TANF-ACF-IM-2007-03 |
Date: May 16, 2007 |
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TO: |
State Agencies Administering the Temporary Assistance for Needy Families Program and Other Interested Parties. |
SUBJECT: |
Charitable Choice |
PURPOSE: |
To remind State agencies of the TANF Charitable Choice requirement. |
REFERENCES: |
Title I, Section 104 of the Personal Responsibility and
Work |
BACKGROUND: |
“The paramount goal is compassionate results, and private
and charitable groups, including religious ones, should have the fullest
opportunity permitted by law to compete on a level playing field, so long as
they achieve valid public purposes.... The delivery of social services must
be results-oriented and should value the bedrock principles of pluralism,
nondiscrimination, evenhandedness, and neutrality." President George W. Bush, Thus, President Bush has made it one of his Administration’s top priorities to ensure that Federal programs are fully open to faith-based and community groups in a manner that is consistent with the Constitution. The TANF Charitable Choice provisions in Title I, Section
104 of PRWORA of 1996 (42 U.S.C. 604a) removed unnecessary barriers placed on
faith-based programs by allowing States to contract with religious
organizations, or to accept certificates, or other forms of disbursement on
the same basis as any other nongovernmental provider, without impairing the
religious character of the organization and without diminishing the religious
freedom of the beneficiaries.[1] We issued final regulations on |
POLICY: |
“The indispensable and transforming work of faith-based
and other charitable service groups must be encouraged. Government cannot be replaced by charities,
but it can and should welcome them as partners. We must heed the growing consensus across Faith-based organizations are an integral part of the
social services network of the The TANF Charitable Choice provisions apply
whenever a State or local government uses Federal TANF funds or expends State
or local funds claimed to meet the State’s maintenance-of-effort (MOE)
requirement to procure services and benefits from non-governmental
organizations, or provides clients with certificates, vouchers, or other
forms of disbursement that can be redeemed for services in connection with
the TANF program. When State or local
funds are used to meet the State’s MOE requirement, the provisions apply
irrespective of whether the State or local funds are commingled with Federal
funds, segregated, or expended in separate State programs. Thus, religious organizations must be
allowed to compete on an equal footing to provide the needed benefit or
service.[3]
The procurement provisions in 45 CFR Part 92 apply to the TANF program. In particular, 45 CFR 92.36(b)(1) states that “Grantees and subgrantees will use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this section.” Applicable Federal law includes the TANF Charitable Choice statutory provisions and implementing regulations. Therefore, we urge State officials to review the details of their procurement practices, including any applicable contract documents, civil rights compliance forms, communications about procurement opportunities, procurement manuals, and any other applicable documents to ensure that faith-based organizations have the same opportunities as any other service provider to compete for TANF funds to provide the needed TANF benefit or service. The Charitable Choice provisions preserve both the religious freedom of TANF beneficiaries as well as the religious character of faith-based providers. In addition, Federal civil rights laws apply to faith-based organizations in the same way as with any other organization that receives Federal program funds. However, religious organizations have one narrow statutory exemption, which solely relates to staffing practices within its own organization. Title VII of the Federal Civil Rights Act of 1964 (42 U.S.C. 2000-e) permits a religious organization to hire employees who share its religious beliefs. This exemption is not lost when a faith-based organization receives Federal TANF funds or State MOE funds to provide a secular service. Religious organizations are still subject to Federal civil rights laws that prohibit employment discrimination on the basis of race, color, national origin, sex, age, and disability. Hence, there are no obstacles that should prevent a religious organization from competing for TANF funds. As such, it is ACF’s policy that whenever a State chooses to procure services and benefits from nongovernmental organizations, the State’s procurement policy must allow faith-based organizations to compete to provide the service. To do otherwise, might lead to a finding during the required single audit process that the State did not comply with the TANF Charitable Choice provisions. Another way that faith-based
organizations can help States in a significant way is in helping the State
meet its cost-sharing (MOE) requirement.
The regulations at 45 CFR Part 92 address cost-sharing requirements
and permit States to count toward their MOE requirement allowable,
non-Federal, cash or in-kind expenditures by a third party. Third parties include such entities as a
faith-based organization, a non-profit organization, a corporation, or other
private party. The State must have a
written agreement with this other party allowing the State to count the
expenditure toward its MOE requirement.
We clarified this policy in TANF Policy Announcement
TANF-ACF-PA-2004-01, dated Since faith-based organizations have a long-standing tradition of caring for people in need, we strongly believe that involving such organizations in helping to meet the needs of your clientele can be a win-win experience for you and the beneficiaries alike. |
INQUIRIES: |
Inquiries should be directed to the appropriate TANF Regional Program Manager. |
Sidonie Squier, Director
Office of Family Assistance
[1] We use the words “religious organization” and faith-based organization” interchangeably.
[2] This final rule is available on HHS’ Center for Faith-Based & Community Initiatives website at: http://www.hhs.gov/fbci/regs.html .
[3] The preemption provision in section 104(k) of PRWORA as amended (42 U.S.C.604a(k)) is the only exception to the TANF Charitable Choice provisions. It states that the Charitable Choice requirements do not preempt any provision of a State constitution or State statute that prohibits or restricts the expenditure of State funds in or by religious organizations. Pursuant to the TANF regulations at 45 CFR 260.34(j), this preemption provision only applies to the use of segregated State TANF MOE funds or separate State MOE funds. Therefore, States that have general or specific provisions that prohibit or restrict providing direct or indirect State funds to religious organizations could still use segregated Federal TANF funds or commingled funds to pay for benefits and services provided by religious organizations.