BUSH ESTABLISHES FAITH-BASED OFFICE AT WHITE HOUSE

WASHINGTON (Reuters) - President George W. Bush established a White House
office dedicated to encouraging religious organizations to seek billions in
federal dollars for helping address alcoholism, drug addiction,
homelessness and other social ills.

By doing so, Bush drew the wrath of advocates of a strict separation
between church and state. They warned they might file a legal challenge on
grounds that it violates the First Amendment to the U.S. Constitution.

Appearing Monday with 35 religious leaders, Bush signed an executive order
setting up the White House Office of Faith-Based and Community Initiatives.
And he appointed University of Pennsylvania political science professor
John DiIulio to head it.

Secondly, Bush signed an executive order he said would clear away
regulatory barriers ``that make private groups hesitate to work with
government.''

He directed the departments of Justice, Housing and Urban Development,
Health and Human Services, Labor and Education to open faith-based centers
within 45 days to help eliminate regulatory and other obstacles to
faith-based participation in providing social services.

``Government will never be replaced by charities and community groups. Yet
when we see social needs in America, my administration will look first to
faith-based programs and community groups, which have proven their power to
save and change lives,'' Bush said.

``We will not fund the religious activities of any group, but when people
of faith provide social services, we will not discriminate against them,''
he said.

Bush said he would offer legislation on Tuesday to Congress to further his
faith-based initiative.

Break For Taxpayers

This was expected to include extending to all taxpayers the federal
charitable tax deduction, which allows people who itemize on their taxes to
deduct money given to charity from their taxable income.

The White House had no figure on the cost of Bush's proposals. During the
presidential campaign Bush had proposed spending $23.9 billion over 10
years for compassionate causes.

The idea behind Bush's focus is that there are some problems government
cannot solve and to give money to organizations that are steeped in ways to
address ills like substance abuse, alcoholism, homelessness and gang violence.

Bush's action drew a swift response from groups like the Americans United
for Separation of Church and State.

``We think it's a misguided public policy, and from a constitutional
perspective, it's a nightmare,'' said a spokesman for the group, Steve
Benen. ``It's creating a new government bureaucracy created to funnel tax
dollars to religious institutions. It is merging church and state at an
unprecedented level.''

He said the group might file suit against the plan on grounds it violates
the strict constitutional separation between church and state.

Laura Murphy, director of the Washington national office of the American
Civil Liberties Union, said the plan raises civil rights question as well.

She said, for example, there would be nothing to force a Jewish-run mental
health program to treat members of other religions.

Rabbi David Saperstein, director of the Religious Action Center of Reform
Judaism, said: ``While constitutionally permissible in theory, in practice
this office is woefully unwise. It signifies unprecedented government
endorsement of religion.''

Asked about the criticism, Bush said: ``I am convinced that our plan is
constitutional, because we will not fund a church or synagogue or mosque or
any religion, but instead we'll be funding programs that affect people in a
positive way.''