What law applies when federal funds are provided through vouchers to non-government agencies, including faith-based ones?
Because federal funds are involved, the rights and responsibilities of all parties–the participating ex-offender clients, the Fiscal Agent, Reentry Coordinator, USAO, State and Local Government, private service providers, including faith-based and other community organizations–are governed in part by a federal regulation: Equal Treatment For Faith-Based Organizations, 28 CFR Part 38 (1/21/04). This regulation specifically addresses vouchers and other indirect funding mechanisms.1 It comports with the Supreme Courts ruling in 2002, which held that the First Amendments ban on government establishment of religion is not violated when government includes faith-based social service providers in a voucherized funding program pursuing a secular purpose like reducing crime.2 2. What are the essentials of a legally-valid, voucher-based system of reentry assistance? a. Choice of Providers A voucher- or choice-based delivery system for reentry services only exists if the beneficiaries have a “g