Bush Drops Rule On Hiring of Gays
Democrats: 'Faith-Based' Initiative at Risk

By Dana Milbank
Washington Post Staff Writer
Wednesday, July 11, 2001; Page A01

The White House yesterday abruptly ended its consideration of a regulation that would have let religious charities discriminate against gays in hiring, after Democratic leaders in the Senate warned that such a move would imperil Bush's core "faith-based" initiative.

Earlier in the day, White House officials said they were considering a request from the Salvation Army, the nation's largest charity, to issue a regulation that would protect government-funded religious charities from state and local laws barring workplace discrimination, including on the basis of sexual orientation.

But yesterday evening, after the matter caused a furor in Washington and was denounced by Democratic lawmakers, the White House issued a statement saying it "will not pursue the [Office of Management and Budget] regulation proposed by the Salvation Army and reported today."

The White House retreat followed a report in yesterday's Washington Post that, according to an internal Salvation Army document, the White House had made a "firm commitment" to issue a regulation protecting government-funded religious charities from hiring discrimination laws. At the same time, the Salvation Army agreed to use its clout as the nation's largest charity to boost Bush's "faith-based" initiative. The charity plans to spend between $88,000 and $110,000 per month to support the effort.

"It is important that The [Salvation] Army's support for the White House's activities occur simultaneously with efforts to achieve The Army's objectives," the document said. "The White House has already said that they are committed to move on The Army's objectives when the legislation carrying the charitable choice provisions passes the House of Representatives."

Even after the White House backed down late yesterday, Democratic leaders in the House said they would proceed with an investigation into whether the White House had agreed to allow the Salvation Army and other charities to discriminate against gays, in exchange for the Salvation Army's support for the Bush faith-based initiative.

Rep. John Conyers Jr. (Mich.), the ranking Democrat on the House Judiciary Committee, and Jerrold Nadler (N.Y.), ranking Democrat on the Constitution subcommittee, sent a letter to the White House demanding more information. "I am also working with the General Accounting Office to use their authority to conduct a comprehensive investigation into these matters should the White House fail to voluntarily cooperate," Conyers said. He also called on Republicans to defer floor consideration of the faith-based initiative until there is "a full accounting of the facts."

Despite the administration's swift response to the controversy, the president's effort to fund religious charities -- one of his core legislative initiatives -- may have suffered lasting damage. The Bush proposals were already in a precarious position in the Senate, where opponents cited constitutional concerns.

Senate Majority Leader Tom Daschle (D-S.D.) said yesterday he was "very concerned" about the matter. "I'm troubled by secret deals. I'm troubled by any deal that would not show the kind of tolerance that I think we should show in this country. So clearly it raises a lot of questions and I think may actually imperil the president's efforts to get something passed."

Sen. Joseph I. Lieberman (D-Conn.), a potential Bush ally on the faith-based legislation, said the White House's consideration of the gay discrimination exemption "puts a cloud over the president's desire to extend the faith-based initiative program. Unfortunately it might terminally wound it in the Congress."

Told last night of the White House's rejection of the regulatory measure, Dan Gerstein, Lieberman's spokesman said, "It's a reassuring signal."

White House officials began yesterday by saying there was no deal made to get Salvation Army support for the faith-based initiative in exchange for White House support for the regulatory change. They said, however, they were actively considering the sort of regulatory change the Salvation Army sought.

"A key part of the president's faith-based initiative is to make certain that in order to acquire, or to participate in providing these social services with government funds, we not require fundamental changes in the underlying principles and organizing doctrines, if you will, of the organizations that participate," Vice President Cheney said yesterday.

Last night, administration officials said their rapid review of the matter convinced them that existing law, along with legislation now before Congress, is sufficient to protect religious charities from anti-discrimination laws.

"These protections ensure that religious organizations have the right to hire individuals who share their religious faith," the statement said.

Gay rights groups reacted angrily to news of the Salvation Army's claims, and opponents of the initiative hoped the flap would sink Bush's proposal. Ralph G. Neas, president of the liberal group People for the American Way, said the matter "offers strong evidence that the administration's so-called 'faith-based' proposal would imperil fundamental rights."

The controversy comes at a time when the White House has been working assiduously to make its legislation more palatable to opponents. The administration has expressed support for several amendments to the legislation that would strengthen the line between charities' religious and secular activities. Those amendments cleared the House Judiciary Committee recently.

Another component of the initiative, allowing those who don't itemize their taxes to deduct charitable contributions, is scheduled to be taken up by the House Ways and Means Committee today. Members of Congress have floated various proposals -- including a cap and a floor on contributions that could be deducted -- to reduce the cost of the measure.

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