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The US Government has always given money to charities that have a religious affiliation; it's just that they were required to abide by some rules that basically prevented them from proselytizing. This whole notion of "Faith-Based Initiatives" is really just a way to undermine those restrictions.

I'll just point out that some do "the right thing." There was a gal at work that was organizing some Katrina relief stuff by putting together some care packages. She posted a url that was very clearly to a religious organization. I had a fairly extensive anti-using-diaster-relief-for-proselytization rant email formulated, and then took a look at the website, which eplicitly said not to put any religious articles in the care kits. That impressed me.