New Freedom Initiative Announced / New Contractor Responsibility Rule Blocked

1) President Bush sent a proposal to Congress on February 1, 2001 outlining a government program that will help those with disabilities gain greater access to the workplace.
2) The new rule required federal contracting officers to consider a prospective contractor''s adherence to labor and employment laws.
"New Freedom Initiative" Announced / New Contractor Responsibility Rule Blocked

President Bush sent a proposal to Congress on February 1, 2001 outlining a government program that will help those with disabilities gain greater access to the workplace.   Called the "New Freedom Initiative", it is the fulfillment of a Bush campaign promise that was made in June 2000 and came with a $1-billion price tag.

The proposal includes financial assistance for the disabled in the form of low-interest loans for the purchase of home office equipment and a tax incentive for employers so they will buy computer equipment and adaptive technologies for their disabled employees who could then work from home.   Such special equipment would include computer monitors for people with visual impairments, text telephones for the hearing impaired and lighter wheelchairs and prostheses to improve mobility.   According to surveys done by the National Organization on Disability, of the 54 million disabled people in the United States, only one third who are of working age are currently employed.  

Elaine L. Chao, in her confirmation hearing as the new Secretary of Labor, spoke of the key role that the Department of Labor (DOL) is expected to play in this initiative with the creation of a new office for disability policy.   Clinton´s Presidential Task Force on the Employment of Adults with Disabilities proposed the new disability office in December 1999.  

Faith-Based Programs

Under the New Freedom Initiative religious groups will now be able to compete with other organizations for funding for social welfare programs - such programs would include those that receive DOL grants for employment and training for the disadvantaged.   The departments of Labor, Health and Human Services, Housing and Urban Development, Justice, and Education are each responsible for removing any "statutory, regulatory and bureaucratic barriers that stand in the way of effective faith-based and community social programs".   It has been said that the new OSHA ergonomics regulations will be reviewed under this directive.

Contractor Responsibility Rule Blocked

This rule, that we recently reported had "just made it" by coming into effect on Clinton''s last day as President, has been stayed.   A Government Services Administration (GSA) procurement executive has reported that a stay of the rule has been issued.   The GSA representative said that not enough time had been given to meet the new obligations incurred under the rule that came into effect 30 days after it was posted in the Federal Register, on December 20th, 2000.   The new rule required federal contracting officers to consider a prospective contractor''s adherence to labor and employment, environmental and tax laws before awarding federal government contracts.   The GSA''s staying of the rule is in effect until July 19th, 2001.

It is interesting to note that two rules that have received a great deal of resistance from employers'' groups, the new ergonomics regulations and the federal contractor responsibilities rule, have been targeted for review and possible reversal.

See also IR/Legal News Section

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