Why CARE?

Supporters of the Charity Aid and Recovery Act (CARE), which passed the Senate Finance Committee in June, are hoping Senate leaders can work out an agreement to bring the bill to the floor soon. Senate Minority Leader Trent Lott (R-MS) was quoted as saying an agreement limiting the number of amendments that can be offered in a floor debate is crucial, or "probably time was going to pass it by." Majority Leader Tom Daschle (D-SD) has been working on a "unanimous consent agreement," which may limit amendments to one or two for each party, thereby limiting the amount of floor time needed to consider the bill. On the Republican side, Sen. Phil Gramm (R-TX) is pushing an amendment that would expand a 25 percent capital gains exclusion for sales of land to conservation groups to apply to all types of charitable organizations. Sen. Kay Bailey Hutchinson (R-TX) has expressed interest in an amendment exempting state and local political committees from reporting under the Stealth PAC law that passed in 2000. Several Democrats have expressed interest in offering amendments, although the issues were not clear. These include Sens. Jack Reed (D-RI), Paul Wellstone (D-MN) and Blanche Lincoln (D-AR). The issue of discrimination in hiring by faith-based entities that receive federal funds remains a key area of concern. Currently, the CARE Act is silent on this point. Yet the administration appears to be pursuing implementation through administrative actions, prompting several Senators to see a need to address this issue through the CARE Act. Even if the bill passes the Senate, it must still be reconciled with the House bill or accepted by the House. The House bill, H.R. 7, is much broader, with an extreme faith-based component and a minimal nonitemizer deduction. See our letter to Congress opposing H.R. 7.
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