---
kind: "section"
citation: "42 U.S.C. § 300x–65"
title: "42"
title_heading: "The Public Health and Welfare"
number: "300x–65"
heading: "Services provided by nongovernmental organizations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/300x-65"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter XVII — Block Grants"
  - "Part B — Block Grants Regarding Mental Health and Substance Use"
  - "Subpart iii — general provisions"
---

# §300x–65. Services provided by nongovernmental organizations

- (a) **Purposes—** The purposes of this section are—
  - (1) to prohibit discrimination against nongovernmental organizations and certain individuals on the basis of religion in the distribution of government funds to provide [substance abuse services](/usc/42/290cc–34.md?p=4) under this subchapter and subchapter III–A, and the receipt of [services](/usc/42/201.md?p=a) under such subchapters; and
  - (2) to allow the organizations to accept the funds to provide the [services](/usc/42/201.md?p=a) to the individuals without impairing the religious character of the organizations or the religious freedom of the individuals.
- (b) **Religious organizations included as nongovernmental providers—**
  - (1) **In general—** A [State](/usc/42/201.md?p=f) may administer and provide [substance abuse services](/usc/42/290cc–34.md?p=4) under any [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A through grants, contracts, or cooperative agreements to provide assistance to [beneficiaries](/usc/42/300gg–91.md?p=d-2) under such subchapters with nongovernmental organizations.
  - (2) **Requirement—** A [State](/usc/42/201.md?p=f) that elects to utilize nongovernmental organizations as provided for under [paragraph (1)](#b-1) shall consider, on the same basis as other nongovernmental organizations, religious organizations to provide [services](/usc/42/201.md?p=a) under substance abuse [programs](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A, so long as the [programs](/usc/42/274l–1.md?p=4) under such subchapters are implemented in a manner consistent with the Establishment Clause of the first amendment to the Constitution. Neither the Federal Government nor a [State](/usc/42/201.md?p=f) or local government receiving funds under such [programs](/usc/42/274l–1.md?p=4) shall discriminate against an organization that provides [services](/usc/42/201.md?p=a) under, or applies to provide [services](/usc/42/201.md?p=a) under, such [programs](/usc/42/274l–1.md?p=4), on the basis that the organization has a religious character.
- (c) **Religious character and independence—**
  - (1) **In general—** A religious organization that provides [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A shall retain its [independence](/usc/42/242q–4.md?p=1-B) from Federal, [State](/usc/42/201.md?p=f), 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](/usc/42/201.md?p=f) or local government shall require a religious organization—
    - (A) to alter its form of internal governance; or
    - (B) to remove religious art, icons, scripture, or other symbols,

    in order to be eligible to provide [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A.

- (d) **Employment practices—**
  - (1) **Substance abuse—** A religious organization that provides [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A may require that its [employees](/usc/42/300gg–91.md?p=d-5) providing [services](/usc/42/201.md?p=a) under such [program](/usc/42/274l–1.md?p=4) adhere to rules forbidding the use of [drugs](/usc/42/11851.md?p=4) or alcohol.
  - (2) **Title VII exemption—** The exemption of a religious organization provided under section 702 or 703(e)(2) of the Civil Rights Act of 1964 ([42 U.S.C. 2000e–1](/usc/42/2000e–1.md), 2000e–2(e)(2)) regarding employment [practices](/usc/42/17061.md?p=19) shall not be affected by the religious organization’s provision of [services](/usc/42/201.md?p=a) under, or receipt of funds from, any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A.
- (e) **Rights of beneficiaries of assistance—**
  - (1) **In general—** If an individual described in [paragraph (3)](#e-3) has an objection to the religious character of the organization from which the individual receives, or would receive, [services](/usc/42/201.md?p=a) funded under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A, the appropriate Federal, [State](/usc/42/201.md?p=f), or local governmental entity shall provide to such individual (if otherwise eligible for such [services](/usc/42/201.md?p=a)) within a reasonable period of time after the date of such objection, [services](/usc/42/201.md?p=a) that—
    - (A) are from an alternative [provider](/usc/42/299b–21.md?p=8) that is accessible to the individual; and
    - (B) have a value that is not less than the value of the [services](/usc/42/201.md?p=a) that the individual would have received from such organization.
  - (2) **Notice—** The appropriate Federal, [State](/usc/42/201.md?p=f), or local governmental entity shall ensure that notice is provided to individuals described in [paragraph (3)](#e-3) of the rights of such individuals under this section.
  - (3) **Individual described—** An individual described in this paragraph is an individual who receives or applies for [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A.
- (f) **Nondiscrimination against beneficiaries—** A religious organization providing [services](/usc/42/201.md?p=a) through a grant, contract, or cooperative agreement under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A shall not discriminate, in carrying out such [program](/usc/42/274l–1.md?p=4), against an individual described in [subsection (e)(3)](#e-3) on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to actively participate in a religious practice.
- (g) **Fiscal accountability—**
  - (1) **In general—** Except as provided in [paragraph (2)](#g-2), any religious organization providing [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A shall be subject to the same [regulations](/usc/42/201.md?p=d) as other nongovernmental organizations to account in accord with generally accepted accounting principles for the use of such funds provided under such [program](/usc/42/274l–1.md?p=4).
  - (2) **Limited audit—** Such organization shall segregate government funds provided under such substance abuse [program](/usc/42/274l–1.md?p=4) into a separate account. Only the government funds shall be subject to audit by the government.
- (h) **Compliance—** Any party that seeks to enforce such party’s rights under this section may assert a civil action for injunctive relief exclusively in an appropriate Federal or [State](/usc/42/201.md?p=f) court against the entity, [agency](/usc/42/8262.md?p=1) or official that allegedly commits such [violation](/usc/42/2000e–16a.md?p=c).
- (i) **Limitations on use of funds for certain purposes—** No funds provided through a grant or contract to a religious organization to provide [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A shall be expended for sectarian worship, instruction, or proselytization.
- (j) **Effect on State and local funds—** If a [State](/usc/42/201.md?p=f) or local government contributes [State](/usc/42/201.md?p=f) or local funds to carry out any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A, the [State](/usc/42/201.md?p=f) or local government may segregate the [State](/usc/42/201.md?p=f) or local funds from the Federal funds provided to carry out the [program](/usc/42/274l–1.md?p=4) or may commingle the [State](/usc/42/201.md?p=f) or local funds with the Federal funds. If the [State](/usc/42/201.md?p=f) or local government commingles the [State](/usc/42/201.md?p=f) or local funds, the provisions of this section shall apply to the commingled funds in the same manner, and to the same extent, as the provisions apply to the Federal funds.
- (k) **Treatment of intermediate contractors—** If a nongovernmental organization (referred to in this subsection as an “intermediate organization”), acting under a contract or other agreement with the Federal Government or a [State](/usc/42/201.md?p=f) or local government, is given the authority under the contract or agreement to select nongovernmental organizations to provide [services](/usc/42/201.md?p=a) under any substance abuse [program](/usc/42/274l–1.md?p=4) under this subchapter or subchapter III–A, the intermediate organization shall have the same duties under this section as the government but shall retain all other rights of a nongovernmental organization under this section.

## Source credit

(July 1, 1944, ch. 373, title XIX, § 1955, as added Pub. L. 106–310, div. B, title XXXIII, § 3305, Oct. 17, 2000, 114 Stat. 1212.)