42 U.S.C. § 604a — Services provided by charitable, religious, or private organizations

(a) In general. (1) State^* options. A State may—(A) administer and provide services under the programs in paragraph (2)(A) and (B)(i) through contracts with charitable, religious, or private organizations; and (B) provide beneficiaries of assistance under the programs in paragraph (2)(A) and (B)(ii) with certificates, vouchers, or other forms of disbursement that can be redeemed with those organizations. (2) Programs described. The programs are (A) a State program funded under this part, as amended by section 103(a) of this Act; and (B) any other program established or modified under title I or II of this Act that (i) permits contracts with organizations; or (ii) permits certificates, vouchers, or other forms of disbursement to be provided to beneficiaries as a way to provide assistance. (b) Religious organizations. The purpose is to let States contract with religious organizations, or let religious organizations accept certificates, vouchers, or other forms of disbursement under a program in subsection (a)(2), on the same basis as any other nongovernmental provider. This must not impair those organizations’ religious character or diminish the religious freedom of beneficiaries whose assistance is funded under the program. (c) Nondiscrimination against religious organizations. If a State uses its authority under subsection (a), religious organizations are eligible, on the same basis as any other private organization, to be contractors that provide assistance or to accept certificates, vouchers, or other forms of disbursement under a program in subsection (a)(2), as long as the programs are carried out consistently with the Establishment Clause of the United States^* Constitution. This section does not define the term “Establishment Clause.” Except as provided in subsection (k), neither the Federal Government nor a State receiving funds under these programs may discriminate against an organization that is or applies to be a contractor providing assistance, or that accepts certificates, vouchers, or other forms of disbursement, because the organization has a religious character. (d) Religious character and freedom. (1) Religious organizations. A religious organization with a contract described in subsection (a)(1)(A), or that accepts certificates, vouchers, or other forms of disbursement under subsection (a)(1)(B), keeps its independence from Federal, State, and local governments. This includes the organization’s control over defining, developing, practicing, and expressing its religious beliefs. (2) Additional safeguards. Neither the Federal Government nor a State may require a religious organization to (A) change its form of internal governance; or (B) remove religious art, icons, scripture, or other symbols, in order to qualify to contract to provide assistance or to accept certificates, vouchers, or other forms of disbursement funded under a program in subsection (a)(2). (e) Rights of beneficiaries of assistance. (1) In general. If an individual described in paragraph (2) objects to the religious character of the organization or institution from which the individual receives, or would receive, assistance funded under a program in subsection (a)(2), the State where the individual lives must, if the individual is otherwise eligible, provide assistance within a reasonable period after the objection. The assistance must come from an alternative provider accessible to the individual, and its value must be at least the value of the assistance the individual would have received from that organization. This section does not define “reasonable period.” (2) Individual described. The individual is one who receives, applies for, or requests to apply for assistance under a program in subsection (a)(2). (f) Employment practices^*. A religious organization’s exemption under section 2000e–1 of this title concerning employment practices is not affected by the organization’s participation in, or receipt of funds from, a program in subsection (a)(2). (g) Nondiscrimination against beneficiaries. Unless another law provides otherwise, a religious organization may not discriminate against an individual when providing assistance funded under a program in subsection (a)(2) because of the individual’s religion, religious belief, or refusal to actively participate in a religious practice. (h) Fiscal accountability. (1) In general. Except as provided in paragraph (2), a religious organization that contracts to provide assistance funded under a program in subsection (a)(2) is subject to the same regulations as other contractors for accounting, according to generally accepted auditing principles, for the use of funds provided under those programs. This section does not define “generally accepted auditing principles.” (2) Limited audit. If the organization puts the Federal funds provided under those programs into separate accounts, only the financial assistance provided with those funds is subject to audit. (i) Compliance. A party seeking to enforce rights under this section may bring a civil action for injunctive relief exclusively in an appropriate State court against the entity or agency alleged to have committed the violation. This section does not define “injunctive relief.” (j) Limitations on use of funds for certain purposes. No funds provided directly to institutions or organizations to provide services and administer programs under subsection (a)(1)(A) may be spent on sectarian worship, instruction, or proselytization. (k) Preemption. This section does not preempt any provision of a State constitution or State statute that prohibits or restricts spending State funds in or by religious organizations.