Bush compromising on religious aid to charities
By LAURA MECKLER
Associated Press

WASHINGTON— President Bush is embracing compromise legislation to help religious charities, although supporters have yet to resolve how they will pay for the scaled-back initiative.

The compromise would give new tax breaks to individuals and corporations, while abandoning the contentious effort to open new government programs to religious groups.

Bush was unveiling the deal at the White House on Thursday with key backers, Sens. Joe Lieberman, D-Conn., and Rick Santorum, R-Pa., who began writing the revised legislation after a partisan fight in the House last summer.

Earlier Thursday, the president spoke of the power of faith in helping the nation recover from the Sept. 11 attacks.

“Millions of Americans have been led to prayer,” he said at the National Prayer Breakfast. “They have prayed for comfort in time of grief, for understanding in a time of anger, for protection in a time of uncertainty. Many, including me, have been on bended knee.”

The legislative compromise includes new social spending that was added to attract Democratic support. Until late Wednesday, the bill included $10 billion over 10 years for a social services grant program. But the White House balked, and Lieberman agreed to limit the spending boost to two years, for a total of just $1.3 billion.

The bill also provides people who do not itemize on their tax forms a new break for giving to charity, though it, too, would expire after two years. The expiration was included to keep down the initial cost of the package, though sponsors know that politically popular tax breaks often are extended when they expire.

The total package is now estimated at about $10 billion over two years.

Negotiators have yet to figure out how to pay for it. A similar compromise was on the table late last year, but did not advance because supporters could not find the money for the plan.

The most contested provision in the House bill would have opened new government programs to churches and other religious groups. It would have allowed these groups to maintain their exemption from civil rights laws and make hiring and firing decisions based on religion, even if they got government money. It also would have let them continue to skirt local laws guaranteeing rights for gays and lesbians.

The Senate bill eliminates this provision, known as charitable choice.

In its place, the bill makes it clear that a religious group cannot be denied a government contract simply because it has a religious name or because it has religious art, icons, scripture or symbols on display.

The compromise is likely to anger people on both sides of this issue.

Supporters of the House bill believe religious groups often are the most effective in providing social services, and want legislation that allows such groups to incorporate religious teachings into their programming for willing participants. They say churches often want to hire people of their faith, and that should not disqualify them from getting a government contract.

Opponents worry the legislation does not make clear that religious groups that discriminate in hiring will not be eligible. Rather, it will be up to the Bush administration to interpret the law, said Rep. Bobby Scott, D-Va.

“Anything that passes anywhere close will give the administration moral authority to go ahead and start discriminating,” he said.

Congressional aides provided details of the package Wednesday on condition of anonymity. Among the provisions:

—A new tax break for the 70 percent of tax filers who claim the standard deduction, rather than itemizing their deductions. Individuals could deduct up to $400 a year (couples $800) from their income in calculating how much they owe in taxes. The tax break is scheduled to disappear in 2004.

Donations to groups that help the poor — as well as to other charitable organizations such as schools or symphonies — would qualify.

—An increase for the Social Services Block Grant, which states use to provide child care, child welfare and a variety of other services to vulnerable families. Cut substantially a few years ago, it gets $1.7 billion this year. That would rise to nearly $2 billion next year, and to $2.8 billion the year after that. This program is funded automatically, meaning it does not have to compete with others during the budget process.

In agreeing to limit the increased funding to just two years, Lieberman said he expected the White House to support more money for the program next year even if the legislation is not approved, said Dan Gerstein, Lieberman’s spokesman. If the president does not support the increased funding, Lieberman will pull his support for the “faith-based” legislation, Gerstein said.

White House spokeswoman Anne Womack said the administration will work with Congress on the issue but said there was no agreement on increasing the funding.

—A larger tax break for corporate charitable donations, which also expires in 2004.

—Tax breaks to encourage banks to offer individual development accounts, which match the savings of low-income people to help them save for education, a home or business.

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