ompromise legislation that would provide tax deductions and indirect grants to benefit faith-based social programs remains quietly in the Senate Finance Committee, despite pleas by President Bush that the measure be moved for a full floor vote prior to the upcoming Memorial Day weekend.

   Known as S. 1924 or the "Charity Aid, Recovery and Empowerment Act of 2002," the bill is seen as a best-chance compromise of previous legislation designed to fund the much-touted White House federal faith-based initiative. The House of Representatives passed H.R. 7, the so-called "Community Solutions Act" which provided for expanded government subsidies for churches and other religious groups operating social programs. Opposition, though, and questions over whether the bill could pass constitutional muster, resulted in a "compromise" being pushed in the Senate by Sens. Joseph Lieberman (D-Conn.) and Rick Santorum (R-PA.)

   In public appearances and White House photos sessions during the last month, President Bush has renewed his call for quick passage of the legislation. The CARE act, despite being a compromise measure, still marks a significant step forward in efforts by government to further subsidize social programs operated by religious organizations, and still permit them to retain a pervasive faith-based character. Among the provisions of S. 1924:

   ¶       Amends the IRS Code to encourage charitable giving through a system of tax deductions, including donations coming from personal IRA accounts. The bill also increases the limit on corporate charitable underwriting.

   ¶       Provides funding and resources for an aggressive outreach to churches and other faith-based and community groups for training in grant writing, legal assistance, program development and administration/management.

   ¶       Amends a provision of the Social Security Act to give states wider latitude in administering and funding programs, including the use of money from the Temporary Assistance for Needy Families (TANF) initiative. The measure would also direct billions of dollars in federal funds to be distributed to states and downward to community "granting agencies" through the Community Development Block Grants.

   The wider use of Block Grants and other indirect sources of funding is one of the most dangerous provision of CARE from a state-church separation perspective, says American Atheists President Ellen Johnson.

   "The money is funneled from the federal level down to states and local agencies which then hand it over to faith-based outreaches," said Johnson. "This 'third-party transfer' is meant as an end-run around the First Amendment, and it amounts to 'laundering' money in order to suibsidize churches, mosques, temples and other houses of worship."

   Johnson noted that the CARE legislation makes no provision for oversight on how the money will be spent.

   "The only provision in S. 1924 that says anything about a review of where these funds are going, and whether the programs even work, is in a section that funds maternity group homes," said Johnson.

   Sen. Joseph Lieberman introduced the bill in February, and has joined President Bush in calling for quick action.

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