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Human Services--Federal Issues Federal Action Alert - The Charity Aid, Recovery and Empowerment (CARE) Act of 2003-April 7, 2003
Your Calls Needed: CARE Act Moves to Senate Floor
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Call your Senators and urge them to vote for passage of the CARE Act of 2003. Ask them to include strong statements of support for the $1.38 billion increase in Title XX/SSBG on the floor. (Congressional switchboard (202) 224-3121) |
Key provisions of interest for states include:
- Increase in SSBG Part of Committee-passed CARE Bill
Title IV of the CARE Act of 2003 includes $1.375 billion in new Social Services Block Grant (SSBG) money to states over a two-year period, long sought by NCSL. The SSBG would be funded at $1.975 billion in FY 2003 and $2.8 billion in FY 2004. This provision of the bill would restore SSBG funding to the authorized level established in 1996 when the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) was signed into law. In addition this section of the legislation would restore the authority of states to transfer up to 10% of their TANF block grant into the SSBG for a fiscal year.
- Individual Development Accounts
Title V of the CARE Act, the "Savings for Working Families Act of 2003", includes an NCSL-backed Individual Development Account (IDA) tax credit to help develop matched savings accounts for working poor families trying to buy their first home, start a small business or go to college. The CARE Act provides for 300,000 accounts that will aid low-income working Americans in building assets and creating wealth.
- 501(c)(3) Application Process
Title III of the Care Act establishes a expedited review process for 501(c)(3) applications of organizations that are organized and operated for the primary purpose of providing social services. Modifications to the existing procedure would waive the application fee for qualified organizations applying for tax exempt status. This would enable smaller faith based organizations to become 501 (c)(3) organizations.
States should be aware that for some states there may be tax implications associated with the CARE Act as the non-itemizer deduction for charitable contributions is an above-the-line deduction. In addition, the Title VIII equal treatment language has been removed from the legislation in order to obtain a unanimous consent agreement on the bill. Title VIII of the legislation would have established limitations on what could be required of a nongovernmental organization involved in the provision of social services. This title was often referred to as the faith-based or charitable-choice provision of the bill, and included NCSL-sought compliance language that required all disputes with a State to be filed in the State court of general jurisdiction. The removal of the charitable choice provisions has further implications as the bill moves to consideration in the House. The reason we are asking Senators to make strong statements of support for the $1.38 billion increase in Title XX/SSBG on the floor is because House sources have indicated that without the inclusion of the charitable choice language the SSBG funding is in jeopardy of being dropped from a House version of the bill.
For more information, please contact:
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Sheri Steisel, Federal Affairs Counsel & Director, NCSL Human Services and Welfare Committee |
Susan Parnas Frederick, Director, (202) 624-5400 |
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