The Administration yesterday eliminated more barriers that have kept faith-based charities from partnering with the Federal government to help Americans in need. Four new regulatory actions previously announced in Philadelphia in December 2002 were finalized and six new regulatory or policy changes were proposed.

Joining Secretary Martinez at the White House for the announcement of regulations governing federal support to faith-based organizations were Labor Secretary Elaine Chao and Jim Towey, director, White House Office of Faith-Based and Community Initiatives.

At a White House event, Secretary Martinez said HUD has finalized regulations that apply to eight HUD programs and will make faith-based groups eligible to compete for $8 billion in HUD grants.

These regulations put into effect the principles set out in the President's Executive Order on Equal Treatment by repealing regulations that prohibited religious organizations from participating in certain programs even those focusing on "secular activities." These final regulations clarify that HUD funds may not be used for the acquisition, construction, or rehabilitation of a sanctuary, chapel, or other room that a religious organization uses as its principal place of worship.

Under the old regulations, for example, when Orange County Rescue Mission in Los Angeles applied for HUD funding, they were told that they needed to form a secular nonprofit, ban all religious activity from their facility, and call their chapel an "auditorium." After the regulations are finalized, groups like Orange County Rescue Mission will be able to apply for HUD funds while maintaining their religious identity. They will be able to expand their work in providing housing and supportive services to the homeless and make increased homeownership a reality.