Working with Faith-Based (FBO) and Community-Based (CBO) Organizations under Executive Order 13279

Issuance No: A21
Issuance Date: October 3, 2006
Subject: Working with Faith-Based (FBO) and
Community-Based (CBO) Organizations under Executive Order 13279

President George W. Bush implemented Executive Order 13279 in 2001.  This executive order required federal agencies to review and revise their policies to ensure that faith-based and community-based organizations are able to apply and compete equally with other eligible organizations for federal financial assistance.  In response to this executive order, DOL implemented several changes to its regulations, including 29 CFR part 2, subpart D. DOL developed the Training and Employment Guidance Letter (TEGL 1-05, dated July 6, 2005) which establishes the new rules to allow the use of WIOA Title I financial assistance for religious training and employment activities.  On October 12, 2005, the Missouri Training and Employment Council (MTEC) approved a policy that encourages local Workforce Development Boards to partner with faith-based organizations to provide services, when appropriate.

The Division of Workforce Development (DWD), which is the official grant recipient for the state of Missouri’s WIOA Title I funding allocation, released the approved policy as Issuance 02-06 on July 28, 2006.  This issuance acknowledges that Title 1 funds can be used to employ or train participants in religious activities, as long as this assistance is provided indirectly.  Indirect financial assistance occurs when participants are given a genuine and independent private choice among training providers or program options and can freely elect, from among such options, to receive training in religious activities when these activities satisfy the requirements of the program.  Individual training accounts and other types of support that provide participants with real choices would meet this requirement.  To ensure that a genuine and independent private choice is provided, each participant must be offered at least one option to which the participant has no religious objection.  As a reminder, training services must be provided in a manner that maximizes an informed consumer choice.  In addition, an organization must not be favored for, or denied recognition as, an eligible provider of services (including training) solely on account of religion.

The Northwest Region, with this policy statement, adopts this principle of inclusion for FBOs and CBOs, and requires that all of their subcontractors adhere to the practice described herein.  DWD will be responsible for monitoring compliance with this policy and providing training on the provisions of 29 CFR part 2, subpart D, which defines the responsibilities of faith-based organizations and other entities that receive or administer DOL support under current law, including state and local governments.


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