The U.S. Department of Labor (DOL) today announced it is moving forward with two regulatory changes that would eliminate barriers to faith-based training and contracting.

The Labor Department announced a notice of proposed rule making (NPRM) that would conform Workforce Investment Act (WIA) job-training funds to rules already governing federal Pell grants and student loans and allow recipients to pursue faith-based careers. Currently, individuals who receive WIA training vouchers are barred from using them to pay for faith-based studies, while individuals who receive Pell grants or federal student loans are allowed to use them to pay tuition in postsecondary faith-based institutions. The department’s proposal would end that inequity and remove this barrier for men and women who want to pursue faith-based training.

The department also announced a direct final rule that amends its rules regarding federal contractors to eliminate the barriers to faith-based institutions contracting with the federal government. The rule implements President Bush’s executive order of Dec. 12, 2002, which mandated that DOL make certain reforms to existing federal contracting rules that affect faith-based organizations.

Currently, faith-based institutions can be barred from competing for federal contracts if they hire staff in accordance with their religious beliefs. The Labor Department will revise the current regulation to conform with Title 7 of the Civil Rights Act of 1964 and make it clear that faith-based institutions that secure government contracts are not barred from hiring members of their own faith.

"Faith-based organizations play a critical role in helping dislocated and unemployed workers find new job opportunities," said Labor Secretary Elaine L. Chao. "The two regulations announced today remove barriers to faith-based organizations and provide a level playing field so they can help people in their communities."