CARE Act of 2003 (S. 476) Passed in the Senate

Senate Bill Contents

April 10, 2003

On Wednesday, April 9, the Senate passed S. 476, a very “slimmed-down” version of President Bush’s Faith Based Initiative, with a vote of 95-5.  The original version of the bill included “equal treatment” language that would have prohibited the government from requiring that faith based organizations remove religious art, icons, or scripture, alter their charters, and/or alter religious qualifications for board membership in order to receive federal funds.  In addition, this language would have protected faith-based organizations that received federal funds from anti-discrimination hiring laws.  However, S. 476 does not contain this language.  Instead it is tax bill that calls for $12.7 billion in new tax breaks for charitable giving and additional new money for the Social Services Block Grant (SSBG).

President Bush and the Congressional supporters of his faith based initiative are not overly concerned about the removal of the “equal treatment” language from the bill since he has already signed an Executive Order which offers this protection through federal regulations.  Therefore, the removal of the language from the bill will only keep it from becoming a part of federal statute.  Supporters of the language would like for it to become part of federal statute so a future president cannot overturn the Executive Order. 

Tax Incentives

The CARE Act includes a deduction for charitable donations for non-itemizers who take the standard deduction.  It also allows taxpayers to deduct up to $250 per person for charitable donations above $250.  This provision is set to expire in two years, at which time Congress could evaluate whether or not these deductions increased charitable contributions.  In addition, the bill includes a provision that offers incentives to increase charitable giving by corporations.  Provisions designed to crack down on offshore corporate-tax shelters would offset the tax cuts. 

Social Services Block Grant

S. 476 provides $1.375 billion in new funding for the Social Services Block Grant (SSBG) for FY03 and FY04. SSBG is a flexible block grant addressing the needs of children and families, the elderly, and other vulnerable adults. It helps them avoid more expensive government assistance by assisting them in their efforts to remain in the community in the most independent setting possible.  Senator Charles Grassley (R-IA), Chairman of the Senate Finance Committee, stated that SSBG “is a very important provision that will greatly benefit the States and, more importantly those in need.  I would note that this was a matter of great priority for me,” he added, “and I am glad to see we have been able to include this funding.”  Senator Rick Santorum (R-PA), the Senate sponsor of the original bill, is said to have agreed to the inclusion of the new funding in an attempt to garner more Democratic support for the bill. 

The bad news about the increased funding for the Social Services Block Grant (SSBG) is that the Administration released a statement on Wednesday stating: “…the Administration strongly opposes the proposed $275 million and $1.1 billion increases in funding for the Social Services Block Grant (SSBG) for fiscal years 2003 and 2004 respectively.  Compared to FY 2002, this would represent a 16% increase in funding in FY 2003 and a 65% increase in funding for FY 2004.  These large increases in SSBG funding far exceed the President’s request and would create significant pressure to extend the 2004 level into the future, costing $11 billion over ten years if made permanent.” 

Future House Bill

The House will not introduce its version of the CARE Act until after the two-week spring recess, which is scheduled to begin Friday, April 11.  House Majority Whip Roy Blunt (R-MO) and Ways and Means Chairman Bill Thomas (R-CA) are said to be drafting the House bill.  It is assumed that this will be introduced strictly as a tax bill and, because the President is opposed to including the additional funding in this bill, will not include an increase for the Social Services Block Grant.

During the spring recess, NASW will join other member organizations of the Social Services Block Grant (SSBG) Coalition in lobbying Representatives to include funding for SSBG in their version of the CARE Act.  Perhaps even more importantly, there is a need for individuals to call and write their Representatives about this issue.  To view NASW’s action alert on this issue, please refer to: https://www.socialworkers.org/advocacy/issues/faith.asp.  As always, thank you for taking the time to make a phone call or send an e-mail to your Members of Congress.  A message is much more effective when it comes from a constituent.  

To view the CARE Act, please refer to the Library of Congress’ Thomas System at www.congress.gov.   Once there, type in S. 476 at the prompt for a bill number.

To view NASW’s “Priorities on the Faith-Based Initiative,” please see: https://www.socialworkers.org/advocacy/issues/faith.asp

For more information regarding the Faith-Based Initiative, please contact Ann Bradford, Senior Government Relations Associate, at 202-336-8237 or abradford@naswdc.org.