I
106TH CONGRESS
1ST SESSION
H. R. 2901
To establish a program of formula grants to the States for programs to
provide pregnant women with alternatives to abortion, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 21, 1999
Mr. PITTS (for himself, Mrs. BONO, Mrs. MYRICK, Mrs. EMERSON, Mrs.
NORTHUP, Ms. ROS-LEHTINEN, Mrs. CHENOWETH, Mr. DELAY, Mr.
CANADY of Florida, Mr. DEMINT, Mr. FLETCHER, Mr. BARCIA, Mr.
SMITH of New Jersey, and Mr. GARY MILLER of California) introduced
the following bill; which was referred to the Committee on Commerce
A BILL
To establish a program of formula grants to the States
for programs to provide pregnant women with alter-
natives to abortion, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Women and Children’s
Resources Act’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds as follows:
(1) Women confronted with unplanned or crisis
pregnancy often are left with the impression that
abortion is the only choice that they have in dealing
with their difficult circumstances.
(2) Women often lack accurate information,
supportive counseling and other assistance regarding
adoption and parenting alternatives to abortion.
(3) Organizations that provide accurate infor-
mation, supportive counseling and other assistance
regarding adoption and parenting alternatives to
abortion often lack sufficient resources to reach
women in need of their services and to provide for
their needs.
(b) PURPOSE.—The purpose of this Act is—
(1) to promote childbirth as a viable and posi-
tive alternative to abortion and to empower those
facing unplanned or crisis pregnancies to choose
childbirth rather than abortion;
(2) to carry out paragraph (1) by supporting
entities and projects that provide information, coun-
seling, and support services that assist women to
choose childbirth and to make informed decisions re-
garding the choice of adoption or parenting with re-
spect to their children; and
(3) to maximize the effectiveness of this Act by
providing funds only to those entities and projects
that have a stated policy of actively promoting child-
birth instead of abortion and that have experience in
providing alternative-to-abortion services.
SEC. 3. FORMULA GRANTS TO STATES FOR ALTERNATIVE-
TO-ABORTION SERVICES PROGRAMS.
In the case of each State that in accordance with sec-
tion 6 submits to the Secretary of Health and Human
Services an application for a fiscal year, the Secretary
shall make a grant to the State for the year for carrying
out the purposes authorized in section 4(a) (subject to
amounts being appropriated under section 11 for the
year). The grant shall consist of the allotment determined
for the State under section 7.
SEC. 4. ESTABLISHMENT AND OPERATION OF STATE PRO-
GRAMS TO PROVIDE ALTERNATIVE-TO-ABOR-
TION SERVICES; ADMINISTRATION OF PRO-
GRAMS THROUGH CONTRACTS WITH ENTI-
TIES.
(a) IN GENERAL.—Grant funds provided under this
Act may be expended only for purposes of the establish-
ment and operation of a State program (carried out pursu-
ant to contracts under subsection (c)) designed to provide
alternative-to-abortion services (as defined in section 9) to
eligible individuals as described in subsection (b).
(b) ELIGIBLE INDIVIDUALS.—
(1) IN GENERAL.—Subject to paragraph (2), an
individual is an eligible individual for purposes of
subsection (a) if—
(A) the individual is pregnant (or has rea-
sonable grounds to believe she may be preg-
nant);
(B) the individual (male or female) is the
parent or legal guardian of an infant under 12
months of age; or
(C) the individual is the spouse or other
partner of an individual described in subpara-
graph (A) or (B).
(2) 
PRIORITY
FOR
LOW-INCOME
INDIVID-
UALS.—Grant funds provided under this Act shall be
awarded only to States that submit a grant applica-
tion that assures that the State program—
(A) will give priority to serving eligible in-
dividuals who are from low-income families; and
(B) will not impose a charge on any eligi-
ble individual from a low-income family except
to the extent that payment will be made by a
third party (including a government agency)
that is authorized or is under legal obligation to
pay such charge.
(c) ADMINISTRATION OF PROGRAMS THROUGH CON-
TRACTS WITH EXPERIENCED ENTITIES
AND SERVICE
PROVIDERS.—Grant funds provided under this Act shall
be awarded only to States that submit a grant application
that assures that the State program will be established
and operated in accordance with the following:
(1) ESTABLISHMENT AND OPERATION OF PRO-
GRAM.—
(A) PRIME CONTRACTOR.—The State shall
enter into a contract with a nonprofit private
entity that, under the contract, shall be des-
ignated as the ‘‘prime contractor’’ and shall
have the principal responsibility for admin-
istering the State program, including subcon-
tracting with service providers.
(B) SUBCONTRACTS WITH SERVICE PRO-
VIDERS.—The prime contractor shall enter into
subcontracts with service providers for reim-
bursement of alternative-to-abortion services
provided to eligible individuals on a fee-for-serv-
ice basis, as provided in paragraph (2)(C)(ii).
(C) 
EXPENDITURES
OF
GRANT.—The
prime contractor shall be authorized to expend
funds to administer the State program, reim-
burse service providers, and to provide addi-
tional supportive services to assist such pro-
viders in providing alternative-to-abortion serv-
ices to eligible individuals consistent with the
purposes of this Act, including but not limited
to providing for a toll-free referral system, ad-
vertising of alternative-to-abortion services, pur-
chase of educational materials, and grants for
new sites and new project development.
(D) REQUIREMENT FOR PRIME CONTRAC-
TORS.—An entity may not become a prime con-
tractor unless, consistent with the overall pur-
pose of this Act, it has a stated policy of ac-
tively promoting childbirth instead of abortion.
(E) 
ADDITIONAL
REQUIREMENTS
FOR
PRIME CONTRACTORS.—An entity may not be-
come a prime contractor unless—
(i) for the five-year period preceding
the date on which the entity applies to re-
ceive the contract, it has been engaged pri-
marily in the provision of core services or
it has operated a project that provides
such services;
(ii) it already serves as a prime con-
tractor pursuant to a State appropriation
designed to fund alternative-to-abortion
services; or
(iii) it is a subsidiary of an entity that
meets the criteria under clause (i) or (ii).
(F) REQUIREMENTS
FOR
SUBCONTRAC-
TORS.—An entity may not become a service
provider unless—
(i) it operates a service provider
project that has a stated policy of actively
promoting childbirth instead of abortion;
(ii) its project has been providing al-
ternative-to-abortion services to clients for
at least one year; and
(iii) its project is physically and finan-
cially separate from any entity that advo-
cates, performs, counsels for or refers for
abortion.
(G) RESTRICTION.—No prime contractor
or service provider project may perform abor-
tion, counsel for or refer for abortion, or advo-
cate abortion.
(2) EXPENDITURES UNDER THE PROGRAM.—
(A) 
EXPENDITURES
FOR
START-UP
COSTS.—For the first full fiscal year in which
a State program has received grant funds pur-
suant to this Act, the State shall disburse grant
funds to the prime contractor for start-up costs,
not to exceed 10 percent of the amount of the
total grant made to the State for that fiscal
year.
(B) EXPENDITURES FOR ADMINISTRATIVE
COSTS.—For the first full fiscal year in which
a State program has received grant funds pur-
suant to this Act and for the two subsequent
fiscal years, the State shall disburse grant
funds to the prime contractor for administrative
costs, not to exceed 20 percent of the amount
of the total grant made to the State for those
fiscal years. For all other fiscal years, the State
shall disburse grant funds for administrative
costs, not to exceed 15 percent of the total
grant made to the State for the fiscal year.
(C) 
EXPENDITURES
FOR
SERVICE
COSTS.—
(i) DISBURSEMENT
TO
PRIME
CON-
TRACTOR FOR SERVICE COSTS.—For each
fiscal year, the State shall disburse to the
prime contractor for service costs all re-
maining grant funds not expended on per-
missible administrative or start-up costs.
(ii) SERVICE
PROVIDER
REIMBURSE-
MENT RATES.—The prime contractor shall
reimburse service providers for alternative-
to-abortion services provided to eligible in-
dividuals at the following fee-for-service
rates: $10 for every 10 minutes of coun-
seling for eligible individuals; $10 for every
10 minutes of referral time spent; $20 per
individual per hour of class instruction
provided; $10 for each self-administered
pregnancy test kit provided; and $10 for
every pantry visit. For fiscal year 2001
and subsequent fiscal years, each of the
dollar amounts specified in the preceding
sentence shall be adjusted to offset the ef-
fects of inflation occurring after the begin-
ning of fiscal year 2000.
(d) ADDITIONAL RESTRICTIONS REGARDING EX-
PENDITURE OF GRANT FUNDS.—A State applying for re-
ceipt of a grant under this Act must provide assurances,
in its grant application, as follows:
(1) No grant funds will be expended for any of
the following:
(A) Performing abortion, counseling for or
referring for abortion, or advocating abortion.
(B) Providing, referring for, or advocating
the use of contraceptive services, drugs, or de-
vices.
(2) Grant funds may not be expended to make
payment for a service that is provided to an eligible
individual if payment for such service has already
been made, or can reasonably be expected to be
made—
(A) under any State compensation pro-
gram, under an insurance policy, or under any
Federal or State health benefits program; or
(B) by an entity that provides health serv-
ices on a prepaid basis.
(3) Grant funds may not be expended—
(A) to provide inpatient hospital services;
(B) to make cash payments to intended re-
cipients of services;
(C) to purchase or improve land, purchase,
construct, or permanently improve (other than
minor remodeling) any building or other facil-
ity; or
(D) to satisfy any requirement that non-
Federal funds be expended as a precondition of
the receipt of Federal funds.
SEC. 5. SERVICES PROVIDED BY RELIGIOUS ORGANIZA-
TIONS.
(a) PURPOSE.—The purpose of this section is to allow
States to contract with religious organizations pursuant
to section 4(c) on the same basis as any other nongovern-
mental provider without impairing the religious character
of such organizations, and without diminishing the reli-
gious freedom of eligible individuals served under the
State program.
(b) NONDISCRIMINATION AGAINST RELIGIOUS ORGA-
NIZATIONS.—Religious organizations are eligible, on the
same basis as any other nongovernmental organization, as
contractors to provide services under a State program de-
scribed in section 4(c) so long as the program is imple-
mented consistent with the Establishment Clause of the
United States Constitution. Neither the Federal Govern-
ment nor a State receiving a grant under this Act shall
discriminate against an organization which is or applies
to be a contractor under section 4(c) on the basis that
the organization has a religious character.
(c) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS
ORGANIZATIONS.—A religious
organization receiving a contract under section 4(c)
shall retain its independence from Federal, State,
and local governments, including such organization’s
control over the definition, development, practice,
and expression of its religious beliefs.
(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State receiving a grant
under section 2 shall require a religious organization
to—
(A) alter its form of internal governance;
or
(B) remove religious art, icons, scripture,
or other symbols;
in order to be eligible for a contract under section
4(c).
(d) EMPLOYMENT PRACTICES.—
(1) TENETS AND TEACHINGS.—A religious or-
ganization that provides services under a program
described in section 4(c) may require that its em-
ployees providing assistance under such program ad-
here to the religious tenets and teachings of such or-
ganization, and such organization may require that
those employees adhere to rules forbidding the use
of drugs or alcohol.
(2) TITLE VII EXEMPTION.—A religious organi-
zation’s exemption provided under section 702 of the
Civil Rights Act of 1964 (42 U.S.C. 2000e–1,
2000e–2(e)(2)) regarding employment practices shall
not be affected by the receipt of a contract under
section 4(c).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
(1) IN GENERAL.—If an eligible individual has
an objection to the religious character of the organi-
zation from which the individual receives, or would
receive, alternative-to-abortion services, the State
shall provide such individual within a reasonable pe-
riod of time after the date of such objection with the
names and addresses of alternative service providers
that offer a range of services similar to those offered
by the original service provider.
(2) NOTICE.—A State receiving a grant under
this Act shall ensure that notice is provided to indi-
viduals described in paragraph (1) of the rights of
such individuals under this section.
(f) NONDISCRIMINATION AGAINST BENEFICIARIES.—
A religious organization shall not discriminate against an
eligible individual in regard to providing alternative-to-
abortion services on the basis of religion, a religious belief,
or refusal to actively participate in a religious practice.
(g) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization receiving a con-
tract under section 4(c) shall be subject to the same
regulations as other contractors to account in accord
with generally accepted accounting principles for the
use of such funds under this Act.
(2) LIMITED AUDIT.—If such organization seg-
regates funds received under this Act into separate
accounts, then only such funds shall be subject to
audit by the government.
(h) COMPLIANCE.—Any party which seeks to enforce
its rights under this section may assert a civil action for
injunctive relief exclusively in an appropriate State court
against the entity or agency that allegedly commits such
violation.
(i) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No grant funds obtained pursuant to this
Act shall be expended for sectarian worship, instruction,
or proselytization.
(j) PREEMPTION.—Nothing in this section shall be
construed to preempt any provision of a State constitution
or State statute that prohibits or restricts the expenditure
of State funds in or by religious organizations.
(k) TREATMENT OF SERVICE PROVIDERS.—This sec-
tion applies to awards under section 4(c) made by prime
contractors to service providers to the same extent and
in the same manner as this section applies to awards
under such section by States to prime contractors.
SEC. 6. STATE APPLICATION FOR GRANT.
An application for a grant under this Act is in accord-
ance with this section if—
(1) the State submits the application not later
than the date specified by the Secretary;
(2) the application demonstrates that the State
program for which grant funds are sought will be es-
tablished and operated in compliance with all of the
requirements of this Act; and
(3) the application is in such form, is made in
such manner, and contains such agreements, assur-
ances, and information as the Secretary determines
are necessary to carry out this Act.
SEC. 7. DETERMINATION OF AMOUNT OF STATE ALLOT-
MENT.
(a) IN GENERAL.—The allotment of funds to be
granted to each State for a fiscal year is to be the State-
calculated percentage of the total amount available under
section 11 for the fiscal year.
(b) STATE-CALCULATED PERCENTAGE.—The State-
calculated percentage shall be determined by dividing—
(1) the number of children born in the State to
women who were not married at the time of the
birth plus the number of abortions performed in the
State; by
(2) the number of children born in all States to
women who were not married at the time of the
birth plus the number of abortions performed in all
States as last reported by the Centers for Disease
Control and Prevention.
(c) UNALLOTTED FUNDS FOR FIRST THREE FISCAL
YEARS.—For the first three fiscal years, if excess funds
are available due to the failure of any State to apply for
grant funds under this Act, additional funds shall be allot-
ted to participating States in an amount equal to a per-
centage of the excess funds determined by dividing—
(1) the number of children born in the partici-
pating State to women who were not married at the
time of the birth plus the number of abortions per-
formed in the participating State; by
(2) the number of children born in all partici-
pating States to women who were not married at the
time of the birth plus the number of abortions per-
formed in all participating States as last reported by
the Centers for Disease Control and Prevention.
(d) UNALLOTTED FUNDS FOR SUBSEQUENT FISCAL
YEARS.—For years subsequent to the first three fiscal
years, if excess funds are available due to the failure of
any State to apply for grant funds under this Act, addi-
tional funds shall be allotted to participating States in an
amount equal to a percentage of the total excess funds
determined by dividing—
(1) the amount of service costs expended by an
individual participating State under this Act during
the previous calendar year; by
(2) the total amount of service costs expended
by all participating States under this Act during the
previous calendar year.
SEC. 8. BIENNIAL REPORTS TO CONGRESS.
The Secretary shall submit to the Congress periodic
reports on the State programs carried out pursuant to this
Act. The first report shall be submitted not later than
February 1, 2001, and subsequent reports shall be sub-
mitted biennially thereafter.
SEC. 9. DEFINITIONS.
For purposes of this Act, the following terms shall
have these meanings:
‘‘Administrative costs’’. Expenditures for costs
associated with administration of the State program
by the prime contractor, including salaries of admin-
istrative office staff, taxes, employee benefits, job
placement costs, postage and shipping costs, travel
and lodging for administrative staff, office rent, tele-
phone and fax costs, insurance and office supplies,
professional development for administrative staff
and ongoing legal, accounting, and computer con-
sulting for the program. Such term does not include
expenditures for start-up costs or service costs.
‘‘Alternative-to-abortion services.’’ Core services
and support services as defined in this section.
‘‘Core services.’’ The provision of information
and counseling that promotes childbirth instead of
abortion and assists pregnant women in making an
informed decision regarding the alternatives of adop-
tion or parenting with respect to their child.
‘‘Low-income family.’’ Such term has the mean-
ing given such term under section 1006(c) of the
Public Health Service Act.
‘‘Support services.’’ Additional services and as-
sistance designed to assist eligible individuals to
carry their child to term and to support eligible indi-
viduals in their parenting or adoption decision.
These support services include the provision of (A)
self-administered pregnancy testing; (B) baby food,
maternity and baby clothing, and baby furniture; (C)
information and education, including classes, regard-
ing prenatal care, childbirth, adoption, parenting,
chastity (or abstinence); and (D) referrals for serv-
ices consistent with the purposes of this Act.
‘‘Pantry visit.’’ A visit by an eligible individual
to a service provider during which baby food, mater-
nity or baby clothing, and/or baby furniture are
made available to the individual free of charge.
‘‘Referral time.’’ The time taken to research
and set up an appointment on behalf of an eligible
individual to secure support through a referral.
‘‘Referrals.’’ Action taken on behalf of an eligi-
ble individual to secure additional support from a so-
cial service agency or other entity. Referral may be
for services, items and assistance regarding physical
and 
mental 
health 
(prenatal, 
postnatal, 
and
postpartum), food, clothing, housing, education, vo-
cational training, and for other services designed to
assist pregnant women and infants in need.
‘‘Secretary.’’ The Secretary of Health and
Human Services.
‘‘Service costs.’’ Expenditures for costs incurred
by the prime contractor to provide support for serv-
ice provider projects, including salaries for technical
support staff, taxes, employee benefits, job place-
ment costs, professional development and ongoing
training, educational and informational material for
eligible individuals and counselors, advertising costs,
operation of a toll-free referral system, travel for
technical support staff, billing and database com-
puter consulting, seminars for counseling training,
meetings regarding program compliance require-
ments, minor equipment purchases for service pro-
vider projects, new project development, and service
provider reimbursements for alternative-to-abortion
services.
‘‘Service provider.’’ A nongovernmental entity
that operates a service provider project and which
enters into a subcontract with the prime contractor
that provides for the reimbursement for alternative-
to-abortion services provided to eligible individuals.
‘‘Service provider project.’’ A project or pro-
gram operated by a service provider that provides al-
ternative-to-abortion services. All service provider
projects must provide core services and may also
provide support services.
‘‘Start-up costs.’’ Expenditures associated with
the initial establishment of the State program, in-
cluding the cost of obtaining furniture, computers
and accessories, copy machines, consulting services,
telephones, and other office equipment and supplies.
‘‘State.’’ Each of the several States, the Dis-
trict of Columbia, the Commonwealth of Puerto
Rico, American Samoa, Guam, the Commonwealth
of the Northern Mariana Islands, the Virgin Islands,
and the Trust Territory of the Pacific Islands.
SEC. 10. DATE CERTAIN FOR INITIAL GRANTS.
The Secretary shall begin making grants under this
Act not later than 180 days after the date on which
amounts are first appropriated under section 11, subject
to the receipt of State applications in accordance with sec-
tion 6.
SEC. 11. FUNDING.
For the purpose of carrying out this Act, there is au-
thorized to be appropriated $85,000,000 for each of the
fiscal years 2000 through 2004.
SEC. 12. OFFSET.
It is the sense of the House of Representatives that
overall funding for the Department of Health and Human
Services should not be increased under this Act.
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