Civil Rights & Diversity CRD – 010

Issuance System Date: June 17, 2020 

Office: Office of Civil Rights and Diversity (OCRD) 

Subject: Executive Order 13798, Promoting Free Speech and Religious Liberty, in Department 

of the Treasury Financial Assistance Programs 

1. PURPOSE. This Issuance establishes the Department of the Treasury’s policy under 

Executive Order (EO) 13798, Promoting Free Speech and Religious Liberty, in Treasury’s 

programs administering federal financial assistance. 

2. SCOPE. This Issuance applies to all bureaus, offices, and organizations in the Department 

of the Treasury, with the exception of the Offices of Inspector General. The provisions of this 

Issuance shall not be construed to interfere with or impede the authorities or independence of 

the Offices of Inspector General. 

3. BACKGROUND. 

a. On May 4, 2017, the President signed Executive Order (EO) 13798 “Promoting Free 

Speech and Religious Liberty.” This EO established a policy of promoting religious 

liberty and directed the Attorney General to provide guidance to federal agencies on the 

requirements of laws protecting religious liberty. 

b. On October 6, 2017, the U.S. Attorney General issued a memorandum reminding 

agencies that religious organizations are entitled to compete on equal footing for federal 

financial assistance used to support government programs. Generally, such organizations 

are not required to alter their religious character to participate in a government program, 

cease engaging in explicitly religious activities outside the program, or effectively 

relinquish their federal statutory protections for religious hiring decisions.

1 

1 Attorney General’s memorandum at 6; see also id. at 8 (providing guidance for “Agencies Engaged in Contracting 

and Distribution of Grants”). 
 

 

c. On January 16, 2020, the Office of Budget and Management (OMB) issued guidance 

under memorandum (M-20-09) mandating agencies that administer a federal grant 

program to publish policies detailing how they will administer federal grants in 

compliance with EO 13798, the Attorney General's memorandum, and OMB’s 

Memorandum and advising that States or other public grantees may not condition subawards of federal grant money in a manner that would disadvantage applicants of subgrants based on their religious character. 

d. 2 C.F.R. § 200.300 requires grant awarding agencies “to ensure that Federal funding is

expended...in full accordance with U.S. statutory and public policy requirements: 

including...those...prohibiting discrimination. The Federal awarding agency must

communicate to the non-Federal entity all relevant public policy requirements...and 

incorporate them either directly or by reference in the terms of conditions of the Federal 

award.” The Financial Assistance General Certifications and Representations completed 

by all recipients of federal awards that register and apply for grants through the System 

for Award Management require awardees to certify that they will comply with all 

relevant provisions of federal laws, executive orders, regulations, and public policies 

governing financial assistance awards. 

4. EFFECTIVE DATE. This policy is effective with date of signature. 

5. POLICY. It is the policy of the Department to comply with all nondiscrimination 

requirements applicable to federal financial assistance programs, including EO 13798 to 

ensure religious organizations compete on equal footing for federal financial assistance used 

to support Treasury programs. 

6. DEFINITIONS. The following terms are defined to provide clarification for the purpose of 

this Issuance. 

a. Federal financial assistance is a term used to describe monetary or nonmonetary 

assistance to a recipient to support a public purpose. It includes, but is not limited to, 

grants and loans of federal funds; grants or donations of federal property; details of 

federal personnel; or any agreement, arrangement, or other contract that has as one of its 

purposes the provision of assistance. For instance, Treasury and its bureaus provide 

federal financial assistance by issuing grants; donating surplus computer equipment to 

schools and police departments; providing community development funds to institutions 

serving distressed communities and low-income individuals; and by providing grants to 

organizations to fund low-income taxpayer clinics. 

b. Recipient (of federal financial assistance) is a term used to describe any State, territory, 

possession, the District of Columbia, or Puerto Rico, or any political subdivision thereof, 

or instrumentality thereof, any public or private agency, institution, or organization, or 

other entity, or any individual, in any State, territory, possession, the District of 

Columbia, or Puerto Rico, to whom federal financial assistance is extended, directly or 
 

 

 

through another recipient, including any successor, assignee, or transferee thereof, but 

such term does not include any ultimate beneficiary. 

c. Sub-Recipient (of federal financial assistance) means a non-federal entity that receives a 

sub-award from a pass-through entity to carry out part of a federal program; but does not 

include an individual that is a beneficiary of such program. A sub-recipient may also be a 

recipient of other federal awards directly from a federal awarding agency. 

6. RESPONSIBILITIES. 

a. The OCRD Director has the delegated authority to establish agency civil rights policies 

including the Departmental policy for applying Executive Order 13798 in the Treasury 

financial assistance programs or activities. 

b. The Bureau heads and the Departmental Offices program offices are responsible for 

ensuring religious organizations are given the opportunity to compete for Treasury grants 

or contracts and participate on an equal basis with nonreligious organizations. In 

accordance with the Attorney General’s guidance, absent unusual circumstances, bureaus 

and program offices should not condition receipt of a contract or grant on the effective 

relinquishment of a religious organization’s exemption for religious hiring practices, or 

any constitutional or statutory protection for religious organizations under Section 702 of 

the Title VII of Civil Rights Act, 42 U.S.C. 2000e-1(a). In addition, bureaus and 

program offices shall ensure that the terms of the grants they award include provisions 

that state other public grantees may not condition sub-awards of Treasury grant money in 

a manner that would disadvantage grant applicants based on their religious character, as 

required by OMB Memorandum M-20-09. 

7. AUTHORITIES. 

a. Treasury Directive 12-41, “Delegation of Authority Concerning Equal Employment 

Opportunity (EEO) Programs.”

b. Treasury Order 102-02, “Delegation of Authority Concerning Equal Opportunity 

Programs.”

8. REFERENCES. 

a. Executive Order 13798, Promoting Free Speech and Religious Liberty 

b. 2 C.F.R. § 200.300 

c. 28 C.F.R. § 42.102 

d. Attorney General’s October 6, 2017 Memorandum, Implementation of Federal Law 

Protections for Religious Liberty 

e. OMB January 16, 2020 Memorandum, M-20-09, Guidance Regarding Federal Grants and 

Executive Order 13798 

9. OFFICE OF PRIMARY INTEREST. Office of the Assistant Secretary for Management 

and Office of Civil Rights and Diversity. 
10. POLICY REVIEW. The applicable provision or provisions shall be amended or 

superseded effective on the dates specified in any statutory or regulatory change, and 

OCRD shall issue interim guidance addressing the change as soon as practicable. This 

Issuance will be reviewed after five years. 

____________________________ 

Mariam G. Harvey 

Director 

Office of Civil Rights and Diversity