Washington Roundup September 26, 2003
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FY 2004 Appropriations Bills Remain Unfinished; Congress Passes Continuing Resolution to Extend Funding for FY 2003 Programs

This week, Congress passed a Continuing Resolution that will extend FY 2003 funding for programs while Congress completes its work on FY 2004 appropriations bills, including the Labor, Health and Human Services and Education bill that funds alcohol and drug treatment, prevention, education and research programs. While the FY 2003 funding cycle ends on September 30, 2003, Congress has only finished a few of the 13 appropriations bills and does not expect to complete the rest before the end of September, especially with the upcoming Congressional debate on President Bush's FY 2004 supplemental request for funding for the troops and operations in Iraq. Additionally, the FY 2004 funding cycle has been extremely competitive, with scarce funding resources for many programs, making it more difficult for members of Congress to make final funding decisions.

HHS Finalizes Charitable Choice Regulations for SAMHSA, Other Agencies; Final Rules Will Give Faith-Based Organizations Access to Federal Grants

This week, the Department of Health and Human Services (HHS) finalized regulations that will provide faith-based organizations with access to nearly $20 billion in social service grants through the Substance Abuse and Mental Health Services Administration (SAMHSA), the Temporary Assistance for Needy Families (TANF/welfare) program, and the Community Services Block Grant (CSBG) program. The finalized SAMHSA regulations, referred to as the SAMHSA Charitable Choice provisions, will give faith-based institutions that provide drug and alcohol treatment and prevention services access to a number of SAMHSA grant programs.

As a part of the President's faith-based initiative, the Administration sought to give the faith-based community greater access to governmental funds, including drug and alcohol treatment and prevention funding. In December 2002, President Bush issued an Executive Order directing the administrative agencies to ensure that faith-based institutions would have equal opportunity to access Federal programs, specifically grant-making programs. Accordingly, in late 2002, HHS proposed implementing regulations for the SAMHSA Charitable Choice provisions of the Public Health Service Act. The Charitable Choice regulations would give broader grant opportunities through SAMHSA to faith-based organizations that provide drug and alcohol treatment and prevention services. SAMHSA accepted public comments following the issuance of the proposed Charitable Choice rule, and the final rule was published in the Federal Register on September 26, 2003.

The final SAMHSA Charitable Choice regulations permit faith-based organizations access to funding from the Substance Abuse Prevention and Treatment (SAPT) Block Grant program, the Projects for Assistance in Transition from Homelessness (PATH) program, and SAMHSA discretionary grants for drug and alcohol treatment and prevention services.

Highlights of the final SAMHSA regulations include:

• A provision prohibiting discrimination against eligible faith-based organizations in awarding grants.
• A requirement that faith-based organizations cannot use SAMHSA funds for "inherently religious activities.
• A provision that programs receiving federal funds may not discriminate against program recipients on the basis of their religion or religious beliefs or a refusal to actively participate in a religious practice.
• A requirement that a recipient of faith-based services must be given alternative services if he or she objects to the religious character of the services provided. However, there is no requirement that the alternative services be secular, only that they be services to which the recipient has no religious objection.
• A requirement that State or local governments shall not discriminate against education and training for drug treatment personnel that has been provided by a religious organization so long as that education or training is comparable to that which the State or local government would otherwise credit when determining whether the relevant requirements have been satisfied.
  
  The SAMHSA Charitable Choice regulations will become effective in late October 2003. The final SAMHSA charitable choice regulations can be found online at www.dhhs.gov/fbci/SAMHSA_ccregs.pdf.

House Passes Six Month Extension of the Temporary Assistance to Needy Families (TANF/Welfare) Law

This week, due to the upcoming expiration of the Temporary Assistance to Needy Families (TANF/welfare) law on September 30, 2003, a six-month extension of the TANF program passed the House of Representatives. This legislation, H.R. 3146, makes no changes to the current law and maintains current funding streams. Specifically, the bill would extend TANF grants to States, territories, and Indian tribes; extend supplemental grants; and, extend funding for mandatory childcare, abstinence education, and transitional medical assistance (TMA), which provides continued health coverage for individuals leaving welfare for work. The Senate has not yet acted on the bill; however, the Senate is expected to pass the bill without any debate.