Social Service Provisions in the CARE Act and the Charitable Giving Act

CRS Report for Congress
Social Service Provisions in the CARE Act
and the Charitable Giving Act
Vee Burke
Domestic Social Policy Division
Summary
The CARE Act of 2003 (S. 476), passed by the Senate on April 2, 2003, and the
Charitable Giving Act of 2003 (H.R. 7), passed by the House on September 17, 2003,
would authorize an initial annual appropriation of $150 million (and needed sums for
four years) for “compassion capital” grant funding. The bills contain some other social
service provisions — regarding the Social Services Block Grant and maternity group
homes — summarized in a table below. (Both bills concentrate on tax changes to
promote charitable giving, which are not discussed in this report. For these tax
provisions, see CRS Report RS21144.) On December 9, 2003, H.R. 7 was referred to
the Senate Finance Committee. This report will be updated to reflect legislative action.
The faith-based initiative of President Bush, announced in January 2001, included
establishment of a compassion capital fund and tax incentives to promote charitable
giving. President Bush said the compassion capital fund was to provide technical aid and
start-up costs for small groups serving as providers of social services. Congress has acted
on the compassion capital fund, appropriating $30 million for FY2002 and $35 million
for FY2003, and providing $48 million in the conference agreement on the consolidated
appropriations act for FY2004 (H.R. 2673).
The CARE Act and the Charitable Giving Act would enlarge the compassion capital
funding, but in different ways. Both bills propose an initial $150 million annual
appropriation (and such sums as needed for four years). The Senate bill would divide the
funds among three Cabinet departments — the Department of Health and Human
Services, (HHS), the Department of Justice, and the Department of Housing and Urban
Development (HUD) — and the Corporation for National and Community Service for
distribution to community-based organizations that provide social services. The House
bill would appropriate all funds to HHS for grants to private entities that operate
promising social service programs.
Both bills would enlarge tax incentives for donations to charitable organizations, and
these provisions (not discussed in this report) make up the bulk of the legislation. Both
bills have provisions regarding the Social Services Block Grant and maternity group
homes (shown in the table below).

Congressional Research Service ˜ The Library of Congress

CRS-2
Social Service Provisions in S. 476 (the CARE Act) and H.R. 7 (the Charitable Giving Act)
^S^.^{476 (T}^h^e^CARE^{Act of 2003)}^H.R^.^{7 (T}^h^e^C^h^ari^t^ab^l^e^Gⁱ^viⁿ^g^A^c^{t of 2003)}
^a^s^pa^{ssed by}^t^h^{e Sena}^t^e^a^s^pa^{ssed by}^t^h^{e H}^o^use
^p^e^dⁱ^ted^revi^e^w^{of ap}^p^lⁱ^c^ati^oⁿ^s^{of s}^o^ci^al^s^ervi^{ce organ}ⁱ^z^ati^oⁿ^s
^R^e^quⁱ^r^es^t^h^{e S}^ecret^ary^of^t^h^e^T^r^e^a^s^ury^{or h}ⁱ^s^del^e^g^a^t^e^t^o^adopt^procedu^r^es^N^o^provⁱ^sⁱ^oⁿ^.
^e^x^p^e^dⁱ^tⁱ^{ng c}^o^nsi^d^e^r^a^tⁱ^o^{n o}^f^a^p^p^lⁱ^c^a^tⁱ^o^ns^fo^r^t^a^x-e^x^e^m^p^t^st^a^t^{us b}^y^o^r^gaⁿⁱ^z^a^tⁱ^o^ns
^w^h^o^s^e^prim^ary^pu^rpos^{e is}^prov^idin^g^s^o^{cial s}^e^rv^ices^an^{d w}^h^ich^{are s}^eekⁱⁿ^g
^fundⁱ^{ng und}^e^r^a^c^o^nt^r^a^c^t^o^r^gr^aⁿ^t^t^h^a^t^requ^ire^s^t^h^em^{to obtain}^ex^em^{pt s}^t^atu^s^.
^[S^ectⁱ^oⁿ^304]
^A^p^p^lⁱ^c^a^tⁱ^o^{n fe}^e^W^aⁱ^ve^s^t^h^e^a^p^p^lⁱ^c^a^tⁱ^oⁿ^f^e^e^f^o^r^t^h^e^s^e^o^r^g^aⁿⁱ^z^a^tⁱ^oⁿ^sⁱ^f^a^v^e^r^a^g^e^a^nnua^l^gr^o^s^s^N^o^provⁱ^sⁱ^oⁿ^.
^receipts^f^o^r^th^e^precedin^g^4-^y^{ear period are n}^o^{t m}^o^{re th}^an^{$50,000. [S}^ection
ⁱ^{ki/CRS-RS21713}^304]
^g/wⁱⁿ^itioⁿ^o^f^Defⁱⁿ^e^s^s^o^{cial s}^e^rv^ices^as^h^e^lpin^g^pe^opl^{e i}ⁿⁿ^{eed, redu}^ciⁿ^g^pov^ert^y^,ⁱ^m^provⁱⁿ^g^D^e^fⁱⁿ^e^s^s^o^ci^al^s^e^rvⁱ^ces^prog^ram^s^as^prog^ram^s^p^r^o^vⁱ^dⁱⁿ^g^ben^e^fⁱ^t^s^or
^s^.or^o^{cial s}^e^rv^ice^o^u^tco^m^{es o}^f^lo^w^-ⁱⁿ^co^m^e^ch^ild^r^eⁿ^,^r^e^v^italizin^g^lo^w^-ⁱⁿ^co^m^e^co^m^m^uⁿ^{ities, an}^d^s^e^rv^ices^of^an^y^kⁱⁿ^d^{to pers}^on^s^an^{d f}^a^m^iliesⁱⁿⁿ^{eed. [Section}^301]
^le^ak^s^e^rv^ices^em^pow^erin^g^low^-ⁱⁿ^com^e^{people to becom}^e^s^e^lf^-^s^u^f^fⁱ^cien^{t. T}^h^{e term}
^://wiki^“^s^ocial^s^e^rv^ices^”^doesⁿ^o^{t in}^clu^d^{e prog}^ram^s^deliv^erin^g^edu^cation^a^{l as}^sⁱ^s^t^an^ce^uⁿ^d^{er th}^{e Elem}^en^tary^an^{d S}^e^c^o^nd^a^r^y^Edu^cation^A^c^{t or th}^{e Hig}^h^e^{r Edu}^cation
^h^ttp^A^c^t^.^[S^ectⁱ^oⁿ^304]
^B^l^ock^G^r^{ant (SSB}^G⁾
^Fuⁿ^dⁱⁿ^g^S^ets^th^{e en}^titlem^eⁿ^t^ceilin^g^f^o^{r FY2003}^{at $1,975,000,000 an}^{d f}^o^{r FY2004 at}^N^o^provⁱ^sⁱ^oⁿ^.
^{$2,800,000,000. (T}^h^e^F^Y²⁰⁰³^appropri^a^tⁱ^oⁿ^w^a^s^{$1,700,000,000.) [S}^ectⁱ^oⁿ
^401]
^r^an^s^f^{er of}^P^e^r^m^its^{states to}^tr^an^sf^er^{a m}^a^xⁱ^m^u^m^o^f¹⁰^%⁽^c^u^r^r^eⁿ^t^lim^it^is⁴^.²⁵^%⁾^o^f^th^eir^S^a^m^e^provⁱ^sⁱ^oⁿ^.^[S^ectⁱ^oⁿ^305]

^{s fr}^o^m^T^A^N^F^f^uⁿ^d^s^t^o^t^h^{e S}^S^B^G^,^ef^f^ectⁱ^v^{e f}^o^{r F}^Y^{2003 an}^{d t}^h^ereaf^t^e^{r. [S}^ectⁱ^oⁿ^402]
^ram^of
^m^porary
ⁿ^c^e^fo^r
^y^Fam^ilies
^A^N^F⁾

CRS-3
^S^.^{476 (T}^h^e^CARE^{Act of 2003)}^H.R^.^{7 (T}^h^e^C^h^ari^t^ab^l^e^Gⁱ^viⁿ^g^A^c^{t of 2003)}
^a^s^pa^{ssed by}^t^h^{e Sena}^t^e^a^s^pa^{ssed by}^t^h^{e H}^o^use
^A^nnua^l^r^e^p^o^r^t^R^e^q^uⁱ^r^e^s^S^e^c^r^e^t^a^r^{y o}^f^H^e^a^l^t^h^aⁿ^d^H^u^m^aⁿ^S^e^r^vⁱ^c^e^s⁽^H^H^S⁾^t^o^c^o^m^pⁱ^l^e^N^o^provⁱ^sⁱ^oⁿ^.
ⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{states o}ⁿ^SSB^{G act}ⁱ^vⁱ^{ties an}^d^to^su^b^m^{it it to}^Coⁿ^g^r^ess
^a^nnua^l^l^y^;^e^ffe^c^tⁱ^v^e^wⁱ^t^h^st^a^t^e^r^e^p^o^r^t^s^fo^r^FY^{2002. [S}^ectⁱ^oⁿ^403]
^m^p^a^ssioⁿ^ca^pit^a^{l f}^und
ⁿ^dⁱⁿ^g^A^u^t^h^o^rizes^{appropriation}^s^totalin^g^$150^m^illion^f^o^{r FY2003, an}^{d s}^u^ch^s^u^m^s^as^A^u^th^orizes^{appropriation}^s^of^{$150 m}^illion^f^o^{r FY2003, an}^{d s}^u^ch^s^u^m^s^as
ⁿ^{eeded f}^o^{r F}^Y^{2004 t}^h^ro^{ugh FY}^{2007, f}^o^{r th}^{e Departm}^eⁿ^t^of^{HHS ($85 m}^illionⁿ^{eeded f}^o^{r F}^Y^{2004 t}^h^ro^{ugh FY}^{2007, f}^o^{r H}^H^S^t^o^m^a^k^e^{(1) g}^r^an^t^s^t^o
^of^th^{e total )[Section}^{801], th}^{e Departm}^eⁿ^t^of^J^u^s^{tice ($35 m}^illion^)[Section^p^r^iv^{ate en}^{tities th}^{at o}^p^e^r^a^{te p}^r^o^m^isin^g^so^{cial se}^r^v^{ices p}^r^o^g^r^a^m^s^{, an}^d⁽²⁾
^{803], th}^{e Departm}^eⁿ^t^of^Ho^usⁱⁿ^g^an^{d Urban}^Dev^e^lopm^en^{t ($15 m}^illion⁾^g^r^an^ts^{, con}^t^racts^,^{or cooperativ}^{e ag}^reem^en^ts^w^ith^en^tities^prov^idin^g
^[S^ectⁱ^oⁿ^{804] an}^{d t}^h^{e C}^o^rporatⁱ^oⁿ^f^o^{r N}^a^tⁱ^oⁿ^a^l^an^{d C}^o^m^m^uⁿⁱ^t^y^S^e^rvⁱ^{ce ($15}^techⁿⁱ^{cal assistan}^ce^to^an^o^t^h^e^r^en^tity^to^o^p^e^r^a^{te a so}^{cial ser}^v^{ices p}^r^o^g^r^a^m^.
^m^illion⁾^[Section^{802]. A}^ppropriation^s^{are to be u}^s^e^d^fo^r^g^r^an^ts^an^d^[S^ectⁱ^oⁿ^301]
^cooperatⁱ^v^{e ag}^reem^en^t^s^t^o^p^r^ovⁱ^d^{e t}^echⁿⁱ^cal^as^sⁱ^s^t^an^{ce an}^{d i}ⁿ^f^o^rm^atⁱ^oⁿ^t^o
ⁱ^{ki/CRS-RS21713}^com^m^uⁿ^ity^-^b^as^{ed org}^aⁿⁱ^zation^s^th^{at prov}^{ide s}^o^{cial s}^e^rv^ices^.
^g/w
^s^.or^fⁱ^ces^A^llo^w^s^th^{e HHS ap}^p^r^o^p^r^iatioⁿ^to^b^e^u^s^ed^f^o^r^“^s^eed^m^oⁿ^e^y^”^to^estab^lish^state^N^o^provⁱ^sⁱ^oⁿ^.
^le^ak^faⁱ^t^h^-b^a^s^e^d^an^{d local of}^fⁱ^ces^of^f^a^ith^-^b^as^{ed an}^{d com}^m^uⁿ^ityⁱⁿ^itiativ^es^{. [Section}^801]
^es
^://wiki
^h^ttp^echⁿⁱ^cal^sⁱ^s^t^an^{ce to}^R^e^qu^ires^th^{e Secretary}^of^{HHS to prov}^ide^t^echⁿⁱ^{cal as}^sⁱ^s^t^an^{ce to s}^t^ates^an^d^th^{eir political s}^u^bdivⁱ^sⁱ^on^sⁱⁿ^admⁱⁿⁱ^s^t^erin^g^th^{e A}^c^{t. [Section}^801]^A^l^l^o^w^s^H^H^S^t^o^u^s^{e u}^p^t^o^25%^of^appropri^a^tⁱ^oⁿ^t^o^provⁱ^d^{e g}^uⁱ^dan^{ce an}^d^techⁿⁱ^{cal assistan}^{ce to}^{states an}^d^p^o^{litical su}^b^dⁱ^vⁱ^sioⁿ^sⁱⁿ^im^p^l^em^en^tin^g
^ates^s^o^ci^al^s^e^rvⁱ^ces^prog^ram^s^{. [S}^ectⁱ^oⁿ^301]
ⁱⁿ^itioⁿ^o^f^D^e^fi^ne^{s c}^o^m^m^uni^t^y^-b^a^s^e^d^o^r^gaⁿⁱ^z^a^tⁱ^o^{n (}^C^B^O⁾^a^s^a^no^np^r^o^fi^t^c^o^r^p^o^r^a^tⁱ^o^{n o}^r^No^d^e^fⁱⁿ^itioⁿ^.⁽^T^er^m^{is u}^s^ed^oⁿ^lyⁱⁿ^r^e^latioⁿ^to^m^a^terⁿ^ity^g^r^o^u^p^h^o^m^e^s.)
^B^O^a^sso^cⁱ^a^tⁱ^o^{n t}^h^a^t^ha^{s no}^m^o^r^e^t^h^aⁿ^si^x^ful^l^-^tⁱ^m^e^e^q^ui^va^l^e^nt^e^m^p^l^o^y^e^e^s^e^nga^ge^d
ⁱⁿ^p^r^o^vⁱ^dⁱ^{ng so}^cⁱ^a^l^se^r^vⁱ^c^e^s^aⁿ^d^a^c^u^r^r^eⁿ^t^a^nnua^l^b^u^d^g^e^t^fo^r^so^cⁱ^a^l^se^r^vⁱ^c^e^s^o^f
^l^e^s^s^t^h^an^{$450,000. [S}^ectⁱ^oⁿ^801-^804]
^T^y^pes^of^I^d^en^tif^{ies a r}^aⁿ^g^e^o^f^allo^w^a^b^l^e^t^e^c^hⁿⁱ^{cal assistan}^{ce activ}^{ities, in}^clu^dⁱⁿ^g^g^r^an^t^I^d^en^tif^{ies a r}^aⁿ^g^e^o^f^all^o^w^a^b^l^{e activ}^{ities, in}^clu^dⁱⁿ^g^leg^a^{l assistan}^{ce an}^d
ⁿⁱ^cal^w^r^itin^g^an^{d g}^r^an^{t m}^aⁿ^a^g^e^m^eⁿ^t^as^sⁱ^s^t^an^{ce, leg}^a^l^as^sⁱ^s^t^an^ce,^an^dⁱⁿ^f^o^rm^ation^an^d^oth^e^{r bu}^sⁱⁿ^e^s^s^as^sⁱ^s^t^an^{ce, in}^f^o^rm^ati^oⁿ^on^capacity^bu^ildin^g^,ⁱⁿ^f^o^rm^ation
ⁿ^c^e^ref^e^rrals^on^accouⁿ^tin^g^,^law^,^tax^is^s^u^es^{, an}^{d prog}^ram^dev^e^l^o^p^m^eⁿ^{t; als}^o^an^{d as}^sⁱ^s^t^an^{ce in}^iden^tif^yⁱⁿ^g^u^sⁱⁿ^g^bes^t^practices^f^o^{r s}^e^rvⁱⁿ^g^th^{e n}^eedy^,^h^e^lp
ⁱⁿ^f^o^r^m^atioⁿ^oⁿ^cap^acity^b^u^ildⁱⁿ^g^,ⁱ^d^eⁿ^tif^yⁱⁿ^g^an^d^u^sⁱⁿ^g^b^e^{st p}^r^{actices, u}^sⁱⁿ^gⁱⁿ^replⁱ^catⁱⁿ^g^ef^f^ectⁱ^v^e^prog^ram^s^{, an}^{d s}^u^pportⁱⁿ^g^res^earch^on^bes^t^practⁱ^ces^.
^regⁱ^on^{al in}^term^ediary^org^aⁿⁱ^zati^o^ns^{, replicatin}^g^ef^f^ectiv^{e s}^o^{cial s}^e^rv^ice^[S^ectⁱ^oⁿ^301].

^prog^ram^s^{, an}^{d en}^cou^r^agⁱⁿ^g^res^earch^on^bes^t^practⁱ^ces^{. [S}^ectⁱ^oⁿ^s^801-^804]

CRS-4
^S^.^{476 (T}^h^e^CARE^{Act of 2003)}^H.R^.^{7 (T}^h^e^C^h^ari^t^ab^l^e^Gⁱ^viⁿ^g^A^c^{t of 2003)}
^a^s^pa^{ssed by}^t^h^{e Sena}^t^e^a^s^pa^{ssed by}^t^h^{e H}^o^use
^C^o^o^r^dⁱⁿ^a^tⁱ^oⁿ^R^e^q^uⁱ^r^e^s^t^h^e^S^e^c^r^e^t^a^rⁱ^e^s^o^f^{HHS an}^d^{HUD, th}^{e A}^tto^rn^ey^G^eⁿ^e^r^a^l^,^aⁿ^d^t^h^e^N^o^provⁱ^sⁱ^oⁿ^.
^Co^r^p^o^r^atioⁿ^f^o^r^Natioⁿ^a^{l an}^d^Co^m^m^uⁿ^ity^Ser^v^{ice to}^co^o^r^dⁱⁿ^a^{te co}^m^p^assioⁿ
^cap^{ital f}^uⁿ^d^activ^{ities to}^en^su^r^eⁿ^oⁿ^d^u^p^licatioⁿ^o^f^activ^{ities an}^d^eq^u^itab^l^e
^di^s^t^ri^bu^tⁱ^oⁿ^of^res^o^u^r^ces^{. [S}^ectⁱ^oⁿ^805]
^a^ternⁱ^t^{y grou}^p^h^o^m^e^s
^P^e^r^mⁱ^t^s^Runa^w^a^y^aⁿ^d^H^o^me^l^e^{ss Y}^o^ut^{h A}^c^t^fund^{s t}^o^b^e^use^d^fo^r^m^a^t^e^rⁿⁱ^t^y^S^a^m^e^as^C^A^R^E^A^c^t^.^[S^ectⁱ^oⁿ^304].
^g^r^ou^{p h}^o^m^e^s^an^{d au}^th^orizes^{appropriation}^s^of^{$33 m}^illion^f^o^{r th}^em^f^o^r
^F^Y^{2003 an}^{d s}^u^ch^s^u^m^s^asⁿ^{eeded f}^o^{r F}^Y^{2004. [S}^ectⁱ^oⁿ^901]
^Defⁱⁿ^e^s^{a m}^a^tern^ity^g^r^ou^{p h}^o^m^e^as^{a com}^m^uⁿ^ity^-^b^as^{ed, adu}^lt-^s^u^perv^is^ed^g^r^ou^p^A^d^d^s^t^o^t^h^e^C^A^R^E^A^c^t^’^s^d^e^fⁱⁿ^itioⁿ^a^p^r^o^vⁱ^s^o^t^h^a^t^a^h^o^m^e^a^l^s^o^p^r^o^vⁱ^d^e
^ho^m^e^t^h^a^t^p^r^o^vⁱ^d^e^s^y^o^{ung m}^o^t^h^e^r^{s a}ⁿ^d^t^h^eⁱ^r^c^hⁱ^l^d^r^e^{n w}ⁱ^t^h^a^su^pportⁱ^v^{e l}ⁱ^vⁱⁿ^g^p^r^e^gna^nt^w^o^m^e^{n w}ⁱ^t^hⁱⁿ^fo^r^m^a^tⁱ^oⁿ^r^e^ga^r^dⁱ^ng^t^h^e^o^p^tⁱ^oⁿ^o^f^p^l^a^cⁱ^{ng c}^hⁱ^l^d^r^eⁿ
ⁱ^{ki/CRS-RS21713}^arran^g^e^m^eⁿ^tⁱⁿ^w^h^ich^th^{e m}^o^th^ers^{are requ}^{ired to learn}^parentⁱ^ng^aⁿ^{d oth}^e^r^f^o^{r adoption}^,^w^ith^as^sⁱ^s^t^an^{ce w}^ith^pren^{atal care an}^{d ch}^ildbⁱ^r^t^h,^an^{d w}^ith
^g/w^sk^illsⁱⁿ^o^r^d^e^r^to^p^r^o^m^o^t^{e th}^eir^loⁿ^g^-^ter^m^ecoⁿ^o^mⁱ^{c in}^d^e^p^eⁿ^d^en^{ce an}^d^th^eir^pre-^an^{d pos}^t-^placem^en^{t adoption}^couⁿ^s^elin^g^.^[S^ection^304]
^s^.or^chⁱ^l^d^ren^’^s^w^e^l^l^-^beiⁿ^g^.^[S^ectⁱ^oⁿ^901]
^le^ak^R^e^qu^ires^th^{e HHS Secretary}^{to co}^nt^r^a^c^t^{for an}^ev^alu^a^tion^of^th^{e m}^a^tern^ity^S^a^m^e^as^C^A^R^E^A^c^t^.^[S^ectⁱ^oⁿ^304]
^://wiki^g^r^ou^p^h^o^m^e^s^s^u^pport^e^{d by}^f^uⁿ^d^s^uⁿ^d^{er t}^h^{e A}^c^t^.^T^h^{e report}^m^u^s^tⁱⁿ^cl^u^d^e
^h^ttp^ch^aracteris^tics^ofⁱⁿ^divⁱ^du^als^w^h^{o ben}^e^f^{it f}^r^om^th^e^h^o^m^e^s^an^d^w^h^ich^s^e^rv^ices^{are m}^o^s^t^ben^e^fⁱ^{cial. R}^e^qu^ires^th^{e Secretary}^{to s}^u^bm^{it a re}^p^o^r^t^t^o^C^oⁿ^g^r^es^s
^w^ithⁱⁿ^tw^o^y^ear^{s af}^ter^eⁿ^t^e^rⁱⁿ^gⁱⁿ^to^th^{e co}ⁿ^t^r^{act an}^d^bⁱ^enⁿⁱ^ally^th^er^eaf^ter^.
^[S^ectⁱ^oⁿ^901]
^f^Co^ng^{ress reg}^a^r^ding^co^rpo^r^a^t^{e do}^na^tⁱ^oⁿ^{s t}^o^f^a^it^h-^ba^{sed o}^r^g^aⁿ^iza^t^io^ns
^No^prov^is^ion^.^Ex^pres^s^e^s^th^{e s}^eⁿ^s^{e of}^C^oⁿ^g^r^es^s^th^{at corp}^o^r^a^tⁱ^oⁿ^s^{are im}^portan^t^partn^e^rs
^w^ith^g^o^v^e^rn^m^eⁿ^tⁱⁿ^ef^f^o^rts^{to ov}^ercom^e^dif^fⁱ^cu^{lt s}^o^{cietal problem}^s^an^d^th^at
ⁿ^o^co^r^p^o^r^atioⁿ^sh^o^u^ld^ad^o^p^t^p^o^{licies p}^r^o^h^ib^itin^g^coⁿ^t^rⁱ^b^u^tioⁿ^s^to^an
^org^aⁿⁱ^zation^th^{at is}^s^u^cces^s^f^u^lly^ad^va^ncⁱⁿ^g^{a ph}^ilan^t^h^r^{opic cau}^s^e^m^e^rely
^becau^s^e^th^{e org}^aⁿⁱ^zation^is^f^a^ith^-^b^as^{ed. [S}^ection^303]
^N^o^provⁱ^sⁱ^oⁿ^.^Ca^l^l^s^oⁿ^c^o^r^p^o^r^a^tⁱ^o^ns^t^o^m^a^ke^g^r^eat^{er con}^t^ri^bu^tⁱ^oⁿ^s^t^o^f^aⁱ^t^h-b^a^se^d
^org^aⁿⁱ^zatⁱ^oⁿ^s^{. [S}^ectⁱ^oⁿ^303]