Questions about the appropriate relationship between church and state arise perpetually in the United States. Recently, debate about what role religious organizations should play in public life has been spurred in general by a resurgent Protestant evangelicalism and in particular by a set of legal and administrative efforts known as the faith-based initiative. Originally enacted as part of the 1996 Welfare Reform Bill, the faith-based initiative only requires states to assure non-discrimination against religious groups in funding decisions. Yet many states are pursuing faith-based initiatives at levels that go far beyond what they are required to do. How and why are states implementing faith-based initiatives? I will use data collected from Westlaw and in-depth interviews with state faith-based liaisons to answer this question. Although religious organizations have been key players in the social service system, the possibility that certain religious organizations will be preferred over others, or the possibility that religious affiliation or content may themselves become criteria by which social service providers are judged, is something new. By examining how these policies are being implemented on the ground, I will enhance our knowledge and understanding of the role religion plays in society, and the potential consequences of this role.