	Few Grantees Certified They Were Exempt from Statutory Restrictions on Religious-Based Hiring

		Nine DOJ Grantees Certified They Were Exempt from Statutory Restrictions on Religious- Based Hiring

From 2007 to 2015, HHS, DOL, and DOJ awarded funding to at least  2,586 grantees through at least 53 grant programs that were subject to  statutory restrictions on religious-based hiring. The number of relevant grant programs could be  higher. Of the 117 potential FBOs we identified across the three agencies, nine  faith-based grantees, all of which were awarded DOJ grants, certified that  they were exempt from statutory restrictions on religious-based hiring  (see figure 1). Each of the 6 grantees that we  interviewed stated that: hiring individuals who share their religious beliefs to assist with grant  activities was critical to their mission and organizational success;  they include a “statement of faith” on their organization’s job  application form and ask the applicant to attest to the statement of  faith, or hired individuals of the same faith already employed within  their organization; and had the RFRA exemption not been available to them, they likely would  not have sought the grant or they would have had to seek executive- level approval within their organization to apply for the grant. As discussed earlier, we also selected 35 potential faith-based grantees  that received funding in fiscal years 2014 and 2015 and that agencies  reported had not filed a self-certification to be exempted from religious- based hiring restrictions. Federal Agencies Primarily Use Grant Documentation to Notify Grantees of Restrictions on Religious-Based Hiring and Requirements for Demonstrating Eligibility for Exemptions

		Agencies Notify Grantees of Statutory Restrictions on Religious-Based Hiring through Grant Materials that Identify Relevant Regulations

DOJ, DOL, and HHS inform grant applicants and recipients of statutory  restrictions on religious-based hiring and processes for obtaining an  exemption from such restrictions through grant announcements. Agencies Rely on Grantees to Self-Certify that They Meet Eligibility Requirements for Exemptions from Statutory Restrictions on Religious- Based Hiring

DOJ, DOL, and HHS all require grantees that seek to make employment  decisions based on religion to self-certify that they meet requirements to  be eligible for an exemption from statutory restrictions on religious-based  hiring, but vary in how they review and approve requests for exemptions. The Assistant Secretary’s office then reviews exemption requests and  approves them or provides a reason for denial. DOL  implemented this process in response to the 2007 OLC opinion. We did not identify  any faith-based recipients of grants from this program from fiscal years  2007 through 2015, and HHS officials confirmed that no nonprofit entities  received any grants from the program during this time. Agency Comments

We provided a draft of this report to the Departments of Labor, Justice,  and Health and Human Services.
Why GAO Did This Study

The federal government provides billions of dollars in grant funding to organizations offering social services, including FBOs. In carrying out their mission, some FBOs prefer to hire individuals who share their religious beliefs. Although the 1964 Civil Rights Act prohibits employment discrimination based on religion, section 702(a) of the Act exempts FBOs from this prohibition, thereby allowing them to hire based on religion. However, some federal grant programs contain statutory restrictions prohibiting this practice. Since a 2007 DOJ legal opinion, federal agencies allow faith-based grantees to use RFRA as a basis for seeking an exemption to allow religious-based hiring.
GAO was asked to review the extent to which faith-based grantees have sought RFRA exemptions from statutory restrictions on religious-based hiring. This report describes (1) what is known about faith-based grantees that have certified exemption from statutory restrictions on religious-based hiring, per RFRA, since 2007; and (2) how agencies inform grantees of statutory restrictions on religious-based hiring and requirements for demonstrating their eligibility for an exemption.
GAO reviewed information from DOJ, HHS, and DOL grantees from fiscal years 2007 to 2015 that were subject to statutory restrictions on religious-based hiring. GAO interviewed faith-based grantees that certified as exempt and a selection of those that did not. GAO also reviewed agency grant documentation and guidance provided to grantees and interviewed cognizant officials to understand the processes FBOs must follow to certify as exempt.

What GAO Found

From fiscal years 2007 through 2015, few faith-based grantees sought an exemption based on the Religious Freedom Restoration Act of 1993 (RFRA) from nondiscrimination laws related to religious-based hiring. Specifically, GAO found that the Department of Justice (DOJ), Department of Health and Human Services (HHS), and Department of Labor (DOL) awarded funding to at least 2,586 grantees through at least 53 grant programs containing nondiscrimination hiring restrictions during this time. The number of relevant grant programs could be higher, because GAO could not identify all such programs due to data limitations. Across the 3 agencies, GAO identified 117 grantees that were potential Faith-Based Organizations (FBOs). Of the 117 potential FBOs, 9 DOJ grantees were FBOs that certified as being exempt from statutory restrictions on religious-based hiring. GAO interviewed 6 of these FBOs, all of which stated that hiring individuals who share their religious beliefs was critical to their mission, and that had the RFRA exemption not been available to them, they likely would not have sought the grant.
DOJ, DOL, and HHS inform grant applicants and recipients of statutory restrictions on religious-based hiring and processes for obtaining an exemption from such restrictions generally through grant materials. DOJ and DOL also provide relevant information on their web sites. All three agencies require grantees that seek to make employment decisions based on religion to self-certify that they meet requirements to be eligible for an exemption, but vary in how they review and approve requests for exemptions. For example, DOJ, DOL, and HHS have policies requiring grantees to submit their exemption self-certification, but only DOL reviews exemption requests and either approves them or provides a reason for denial.