In neutrality theory the recipients of vouchers, grants, and purchase-of-service contracts are eligible to participate as providers in government social service programs without regard to their religious character. Indeed, religious beliefs and practices are prohibited bases for screening out those who want to be welfare program providers. Notable examples of congressional social service legislation conforming to the rule of religious neutrality are the ‘charitable choice‘ feature imbedded in the Welfare Reform Act of 1996 and the Community Services Block Grant Act of 1998, as well as the provision allowing issuance of child care vouchers to indigent parents in the Child Care and Development Block Grant Program of 1990. Likewise, federal grants-in-aid programs, for example the Church Arson Prevention Act of 1996, the Telecommunication Act of 1996, and the President's Values-Based Violence Prevention Initiative to reduce youth violence and gang activity, adhere to the principle of religious neutrality.
Carl H. Esbeck, Myths, Miscues, and Misconceptions: No-Aid Separationism and the Establishment Clause, 13 Notre Dame J.L. Ethics & Pub. Pol'y 285 (1999)