Bush calls for passage of new `faith-based' compromise plan. (People & Events).

A dramatically watered-down version of President George W. Bush's "faith-based" initiative is picking up steam in the Senate and may pass this spring.

Discussing welfare reform at St. Luke's Catholic Church in Washington, D.C., Feb. 26, Bush endorsed the Charity, Aid, Recovery and Empowerment (CARE) Act of 2002, sending a strong signal that he believes this Senate legislation is more likely to make it into law instead of the "faith-based" bill passed by the House last year.

The House bill, H.R. 7, never gained traction in the Senate because it has controversial provisions giving direct subsidies to religious groups and allowing participating organizations to engage in various forms of hiring discrimination while receiving taxpayer aid.

At the St. Luke's event, Bush praised U.S. Sen. Rick Santorum (R-Pa.), co-sponsor of the CARE act with Sen. Joseph Lieberman (D-Conn.).

Bush remarked, "It is time for the Senate to pass the faith-based initiative. Its sponsor, Rick Santorum, is here. I appreciate you, Mr. Senator, working hard. Get it through the Senate, and get it on my desk for the good of the American people."

A few weeks later, Senate Majority Leader Tom Daschle (D-S.D.) announced his support for the CARE Act. Daschle met with Jim Towey, director of the White House's Office of Faith-Based and Community Initiatives, and issued a statement saying he believes Congress will pass "a viable consensus package."

Said Daschle, "The federal government should look for new ways to harness the energy of men and women of faith and expand the vital role religious organizations play in combating poverty and providing valuable services. I commend President Bush, Joe [sic] Towey and Sen. Joseph Lieberman for their leadership on this issue. This proposal will strengthen the partnership between charities and government as we work to meet some of our nation's greatest unmet needs."

Daschle's support was seen as crucial. As Senate majority leader, he has the power to block votes on measures the Democrats do not support.

The CARE Act focuses primarily on tax incentives for charitable giving and technical assistance that streamlines the process for creating non-profit organizations. Americans United, which has spearheaded opposition to the president's faith-based initiative, said some of the changes are steps in the right direction but added that problems remain that need to be addressed.

"While the new proposal wisely avoids many of the divisive legal problems of the president's original plan, it still contains several problematic provisions," said Barry W. Lynn, executive director of Americans United. "The White House claims this plan will offer equal treatment for all groups, but it actually gives special treatment to religious groups."

Lynn pointed to the so-called "Equal Treatment" section of the legislation, which unfairly shows bias toward religious social service providers. He noted, for example, that religious groups would be able to receive public funds while displaying unlimited amounts of religious "art, icons, scripture or other symbols." Such displays will make many religious minorities feel like second-class citizens at institutions providing social services with tax dollars.

"It is simply wrong for a publicly funded job training facility to post a banner that reads, `Only Jesus Saves,'" Lynn said. "If a religious group is providing a publicly funded service, they should display an American flag, not a crucifix."

Lynn also said that government contractors in many communities are currently required to have governing boards that reflect the diversity of the community. The CARE Act exempts religious groups from these equal opportunity laws, while not affording the same exemption to secular service providers.

"The president's claim about wanting a `level playing field' rings hollow in light of the details of this proposal," Lynn said.

It remains to be seen what type of reception the bill will receive in the House. Rep. J.C. Watts (R-Okla.), a booster of the House version of the faith-based initiative, has already questioned the Senate language. Watts says that under the Senate version, explicitly evangelical groups that proselytize in their programs would not be eligible for aid.

However, the new legislation's prospects for passage received a boost with endorsements from two large religious groups. The U.S. Conference of Catholic Bishops and the National Council of Churches have both endorsed the bill. Catholic Charities has also called for passage of the CARE Act.