This is getting some big news across the nation. See from the Tulsa paper Catholic Charities forgoes government funding, stays true to values
The Illinois adoption controversy is in the news of course and that is mentioned. But also in that article concrete examples are give dealing with undocumented ( illegal) aliens in the past. So from all factions of political sphere there is tension with the taking of GOVT money.
Now I am not saying that there is no role for the Govt using funds through faith base charities. I am very George W Bush on that. The recent BP oil spill shows the wisdom of the GOVT using and contracting through Faith based agencies. The recent Tornadoes in the South are another example. In fact perhaps the Diocese of Tulsa faced with a similar disaster of such scope might make an rational exception to their policy in that regard.
However it's becoming clearer that many factions might want to use Govt funding as a tool to that would make Catholic Charities goes against their mandate. So I expect we shall see more of this in the future perhaps.
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