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Nonprofit Issues:   


Published: 11/30/2004

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$388 Billion Federal Spending Bill Will Fund Thousands of Faith-based organizations, agencies

The Compassion Capital Fund will receive $55 million to provide social service grants to charitable and religious organizations. That amount is half of what President Bush requested, but 15.3 percent more than in fiscal year 2004. The bill also funds abstinence programs, job training for the unemployed, education and substance abuse programs. For more information see Highlights of the Conference Report, and the article on federal appropriations also in this issue.


Court Narrows Faith-Based Suit

A law suit claiming sweeping constitutional problems with the Bush administration's faith-based initiative has been largely defanged by a court's decision that the plaintiff does not have standing to file the suit. The dismissal of all but a small portion of a lawsuit means the merits of the case remain undecided in the courts.

On June 17, the Freedom of Religion Foundation (FRF) filed suit in the United States District Court for the Western District of Wisconsin against Jim Towey, the Director of the White House Office for Faith-Based and Community Initiativesand the head of every federal agency that has a connection with the Faith-Based Initiative.

The complaint alleges the government violated the Establishment Clause of the First Amendment by: endorsing religion; favoring religious over secular organizations; directly funding services that include religious content; and funding intermediary faith-based organizations that prefer religious subgrantees to secular ones.

On Nov. 12, FRF voluntarily dropped eight of their ten claims focused on specific grants made under the initiative. On Nov. 16, the District Court also dismissed the claims against Jim Towey, all of the Faith-Based Initiative directors at various agencies, and Education Secretary Rod Paige after determining that FRF lacked standing to sue. The District Court felt that the taxpaying members of FRF are not considered injured parties eligible to file suit, leaving the merits of the claims undecided.

As a result, the complaint has been narrowed to two grants, one sponsored by the Department of Health and Human Services and the other by the Department of Labor. Further pre-trial motions on the remaining parts of the complaint were due in District Court by Nov. 23. FRF may still appeal the dismissal of their claims.

  • For more on the Faith-Based Initiative, read this recent article in the OMB Watcher
  • For a legal analysis of the court's decision see the Roundtable on Religion and Social Policy Nov. 22 Legal Update.
  • For federal appropriations funding of faith-based organizations, see the sidebar at the right.