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AT 10 MILE (810) 976-1377 Mr. Clinton's promise to "fix" parts of last year's welfare reform act cutting off benefits to legal immigrants was good news for Jewish activists here, even though GOP leaders already have ruled out any changes. But some Jewish groups also are pressing hard on a little-re- ported provision of the act that they say represents a significant blow to church-state separation. The Ashcroft amendment al- lows religious institutions, in- cluding churches, synagogues and mosques, to participate ful- ly in the distribution of welfare benefits under the new law, with- out the usual safeguards to en- sure that services and religious activity are not commingled. That represents "the biggest church-state setback in the 104th Congress," according to Michael Lieberman, associate director and counsel for the Anti- Defamation League's Washing- ton office. Jewish groups, he said, are looking for corrective language that would allow organizations such as the Salvation Army and Jewish federations to participate while making sure that "perva- sively sectarian" institutions are not able to mix benefits and reli- gion. The welfare law also includes provisions effectively allowing service providers to discriminate in hiring on the basis of religion, a precedent groups such as ADL find appalling. ADL also is working at the state and local level to convince officials to develop implementa- tion guidelines that are more re- spectful of the church-state line than Congress was. But objections to Ashcroft are not unanimous in the Jewish community; Orthodox groups such as Agudath Israel of America supported the amend- ment. And most Jewish groups are focusing on the benefits question, not the more abstract church- state issue. "It's hard to galvanize people on this," Mr. Lieberman said. "Right now, it's just a few para- graphs in a very big bill. But we need to get this on people's radar screen; it's important to deal with the benefits cuts, but it's also im- portant that we treat this as a very serious church-state con- cern." 0