MR. FLEISCHER: Good morning. I'm here to report, and we're joined by Jim Towey, who heads the Faith-based Initiative for the President, and wants to share some information with you, as well.

The President this morning called President Lagos of Chile. The President called him to mark the successful conclusion yesterday of the U.S.-Chile free trade agreement negotiations. The two Presidents discussed the significance of this achievement, which not only deepens the U.S.-Chile bilateral relationship, but it is a positive signal to the hemisphere about the importance of free trade, and it's an important way of continuing to create jobs in America.

Then the President had his intelligence briefing, FBI briefing, and now we are on our way to Philadelphia. I'll return to Philadelphia in just a second. Upon returning to the White House, the President will drop by the American Legislative Exchange Council and briefing here at the White House.

In Philadelphia, as part of the President's vision of compassionate care for the poor and those in danger of being left behind, the Office of Faith-based Community Initiatives has identified at-risk youth as one of the target populations where we need to help Americans at risk.

Children of inmates are one of the most endangered groups in America today. There are 1.5 million children across the country who have parents incarcerated in state and federal prisons. These children are six times more likely than their peers to suffer from problems such as juvenile delinquency, alcohol and substance abuse, and poor academic performance. Without effective intervention, 70 percent of these children will likely follow their parent's path into prison or jail.

The program the President is visiting is called the Amachi Mentoring Program, and it's one of the nation's leading programs for mentoring children of prisoners. The President is looking forward to his visit there. And then the President will make remarks, at which time he will sign an executive order that makes it easier for faith-based groups to work with the federal government to compete for and receive federal funds while retaining their religious character.

The executive order -- and Jim is available here to answer any questions about it -- will ensure that agency regulations and procedures are consistent with equal treatment principles. It will direct agencies to change their regulations so that no organization will be discriminated against based on religion, and that no beneficiary of a federally funded social service may be discriminated against based on any grounds.

I want to give you two examples of why the President thinks this is necessary. After the Seattle earthquake, there was a group in Seattle that applied for federal funds under FEMA as a result of the damage done in the course of the earthquake. This group, the Seattle Hebrew Academy, was a private religious school which was denied relief after the earthquake on the grounds that it was a religious institution and, therefore, did not qualify for disaster relief. The President's executive order will change that. The President sees no reason why a group that is damaged by an earthquake should be discriminated against because its mission is religious.

Similarly, another organization I want to cite for you is in Oklahoma, in Tulsa, there's a small faith-based organization that provides great after-school programs for juvenile delinquents. It applied for a $10,000 grant in April of 2001 under a Department of Justice program that was -- Read more Comment (0), Email this.

MR. FLEISCHER: $10,000. It's called the Sharyn Cosby Ministries. It applied for a $10,000 grant in April of 2001 through the Department of Justice for a program that was administered by the Oklahoma Juvenile Justice Division. It's a highly regarded program. And they were notified in June 2001 that they received the award. But then, after the group's bylaws were reviewed, the organization was declared too religious in nature, even though the service the organization was providing was completely secular. The grant decision was then reversed.

The actions the President is taking today will help ensure that groups like this, that very often are the best groups in society to help those who have been left behind, will no longer be denied funds simply because they have a religious nature. The President looks at people in America who have been left behind, they deserve every shot at making it in America, and believes that these barriers serve as an impediment to helping people make it in America.

There are many government programs that do their best to help the poor and the needy. Despite the good intention of those programs, there still remain addicts, children of prisoners and many others who are left behind. And the President wants to extend society's help to all those groups who -- people who fall through the cracks. And he believes the executive orders he will sign today will help bring help to people who have been left behind and have fallen through cracks.

The last item I want to bring to your attention, and then both Jim and I are happy to take your questions, is a very exciting announcement, I'm very pleased to make it. As part of an annual tradition that started with Jackie Kennedy, this morning Mrs. Bush is visiting the Children's National Medical Center for the annual holiday party. She'll be escorted to the party by a young gentleman named Iran Brown and Elise Smith. Iran is the 13-year-old sniper victim who until today has not been seen publicly. Read more Comment (0), Email this.

MR. FLEISCHER: His family requested that he escort Mrs. Bush for today's visit. He was treated in the burn, surgery and trauma unit in the hospital and is now an outpatient.

The other part of the announcement, which I was referring to earlier, that I want to share with you, is as part of the program about holiday giving and holiday joy and a season of -- this happy season, Mrs. Bush will debut the Barney Cam before about 50 child patients and their families. The video will be played, and then the real Barney will join Mrs. Bush on stage as she takes questions from the audience. It's an open press event. The Barney Cam is, of course, going to go on the White House webpage. It's just little old Barney wearing a camera that's smaller than the ones that the usual White House cameramen have to carry, as Barney films life at the White House at the holiday season. Read more Comment (0), Email this.

MR. FLEISCHER: Barney is a union buster from way back. Read more Comment (0), Email this.

MR. FLEISCHER: Mrs. Bush's event? Read more Comment (0), Email this.

MR. FLEISCHER: Mrs. Bush's exciting event -- my paperwork on it doesn't indicate time, but I remember from the briefing that I had that it was, I think, around 10:15 a.m. or so. Read more Comment (0), Email this.

MR. TOWEY: He's going to sign it at the end of his remarks today. Read more Comment (0), Email this.

MR. FLEISCHER: But there are other executive orders that are part of today that he did sign at the White House. He'll sign one today in Philadelphia. Read more Comment (0), Email this.

MR. TOWEY: The executive orders dealing with the faith-based initiative -- there are two of them. The one that he will sign on stage is the Equal Protection Executive Order that seeks to end discrimination against faith-based groups. The other one that establishes faith-based centers at the Department of Agriculture and AID is not going to be signed on stage, but is signed today. Read more Comment (0), Email this.

MR. TOWEY: I don't know. Read more Comment (0), Email this.

MR. TOWEY: He's going to sign an executive order that says faith-based organizations have -- we need those organizations, of course, to provide more services to our poor. They have a right to maintain their identity. Congress has five different approaches on hiring rights. It's very confusing. Action Ministries in Atlanta is a good example. They get funds from two different federal grants; one has hiring restrictions, one doesn't. Very confusing. The President hopes Congress clears up that muddle of laws that has been exceedingly difficult for small groups to maneuver with.

The President's executive order today, while not addressing directly hiring rights on federal grants, is going to make clear that these groups are not to be barred from participating in federal grants just because they have a religious name or religious board of directors, or governing articles, mission statements that are faith-based. He wants to see these groups able to compete, make sure they don't discriminate in terms of who they serve -- whatever your religious belief or sexual orientation, there's no discrimination on who walks through the door of a soup kitchen that's federally funded. But he also, I think, wants to make clear the Congress will continue to be addressing the issues; I'm sure they will. Read more Comment (0), Email this.

MR. TOWEY: That's right. What I said was in the context of federal grants. Federal contracts will be included in the executive order. The President will make clear that religious organizations that contract on amounts of $10,000 or more are able to hire on a religious basis, consistent with Title 7 of the Civil Rights Act, that's been in place for 38 years and has worked very well. The President simply feels that this executive order will clarify that these groups keep that civil right they have when they do federal contracting. There was no effort by Congress to pull it back, and as the Chief Executive, it is within his prerogative to do this. And I think it's updating America's approach to social services.

Back when the initial executive order was issued in the '60s, there wasn't federal contracting with faith-based groups. Some might have received grants. They weren't treated as contractors. So the President simply is addressing the reality that nowadays there are some contracts that go out to faith-based groups and they should not have to alter their identity to provide a federal service.

He does stress that they have to follow federal law and federal regulation. And that means that you don't proselytize with federal funds. And that your religious activities are separate and funded separate from your federally funded services or contracted or grant wise. Read more Comment (0), Email this.

MR. TOWEY: Very simple. Since 1996, when President Clinton signed the first charitable choice legislation, federal groups have -- federal programs have been made available, such as welfare to work, so we're talking tens of billions of dollars -- to faith-based organizations with the express permission that they could hire with federal funds according to their religious beliefs. There aren't any horror stories and, since 1996, the programs are working well. And at no point has Congress ever repealed the Title VII exemption that has stood for 38 years to protect religious organizations' rights to hire.

So I don't think what President Bush is doing today is anything novel. And certainly, the President respects the importance of the Constitution prohibition of funding religion. The wall he wants to tear down is the wall that separates the poor from effective programs. He wants to see our drug addicts receive the best possible services. And what you'll hear today, I think, is the President cite examples of where the poor have been denied access to effective programs simply because that organization might have had a religious character. So he opposes the funding of religion; always has. This initiative is about better care for the poor. MR. FLEISCHER: I think that the burden is on the critics to explain why the Hebrew Academy, for example, should not receive funding after an earthquake. The burden on the critics is to explain why a program in Oklahoma that helps juvenile delinquents should be denied help because they are effective and they can bring help to those who have been left behind. Read more Comment (0), Email this.

MR. FLEISCHER: Let me do this. Let's stay with faith-based for a second. If there's anything else you need, I'll take them, but you've got Jim here now. Read more Comment (0), Email this.

MR. FLEISCHER: I want to reiterate, the President thought what Trent Lott said was wrong. And Trent Lott has apologized. The President feels very strongly about this. The President knows that we're a nation that has been improved as a result of the civil rights movement, the civil rights changes that were made to our country. We're a better nation. We were a worse nation when we were a segregated nation. Read more Comment (0), Email this.

MR. FLEISCHER: No, the President does not think that Trent Lott should resign. Read more Comment (0), Email this.

MR. FLEISCHER: The statement that North Korea made, that it plans to resume the operation and construction of its nuclear facilities, is regrettable. The announcement flies in the face of international consensus that the North Korean regime must fulfill all its commitments, and in particular, dismantle its nuclear weapons program.

We seek a peaceful resolution to the situation that North Korea has created. As the President said, we have no intentions of invading North Korea. The international community has made it clear that North Korea's relations with the outside world hinge on the elimination of its nuclear weapons program. The next step is for North Korea to dismantle its nuclear weapons program in a visible and verifiable manner. We will consult with friends and allies regarding an appropriate response to this latest move by the North Korean regime.

Finally, the United States has always been open to dialogue in principle, and was prepared for a comprehensive approach to improving U.S. -North Korean relations before the disclosure of North Korea's clandestine uranium enrichment program. However, the United States will not enter into dialogue in response to threats or broken commitments, and we will not bargain or offer inducements for North Korea to live up to the treaties and agreements it has signed. Read more Comment (0), Email this.

MR. FLEISCHER: I think the statement speaks for itself. Read more Comment (0), Email this.

MR. FLEISCHER: I'd refer you to the final item that I said. Read more Comment (0), Email this.

MR. FLEISCHER: To say that we have longstanding had concerns about Iraq providing weaponry to al Qaeda, and of course we know that al Qaeda is seeking -- Read more Comment (0), Email this.

MR. FLEISCHER: Good afternoon. Let me give you a report on the President's day. The President began this morning with an intelligence briefing. Then he was briefed by the FBI. And then, in the morning he had a meeting with the President-elect of Brazil, President-elect Lula, which was a very constructive and positive meeting from the President's point of view. The two had a very good discussion about areas of mutual interest between the United States and Brazil that focused on trade and economic relations between our two nations, and the importance of fighting hunger and poverty.

The President then departed and made a speech at the Chamber of Commerce where he focused on business strengthening America as he announced his support for a program to encourage more businesses to allow their employees to take paid time off to volunteer in their communities to bring help to those in need.

And then the President met with the Chairman of Turkey's AK party, Chairman Erdogan, to talk about regional security vis-a-vis the United States and Turkey, and a variety of issues dealing with economic conditions in Turkey and Turkey's ascension potentially into the European Union. It was a very cordial and positive meeting.

And that is the events on the President's public schedule today. I'm happy to take your questions. Ron. Read more Comment (0), Email this.

MR. FLEISCHER: The two did discuss the situation in Iraq. they both agreed that Iraq is a threat to peace, and the importance of Saddam Hussein disarming. They discussed the United Nations process, which is -- both recognized as a very constructive process in terms of making certain that Saddam Hussein conforms to his international obligations. We have a variety of mutual interests with Turkey as we work closely on how to address this threat.

As you know, my longstanding policy is not to get into any operational specifics. They did discuss ways that we could cooperate, and I leave it at that. Read more Comment (0), Email this.

MR. FLEISCHER: Well, the President -- and I'm not going to do this as a comparison because the President doesn't make appointments on the basis of comparison. The President makes appointments on the basis of the qualities of the people that he appoints at this moment. And the President, as he said, believes that Mr. Donaldson's long experience, his record in dealing both in the private sector and in academia, makes him very qualified to be chairman of the Securities and Exchange Commission. He's widely respected by people in both parties as a man of outstanding integrity, and the President was very pleased to appoint him. Read more Comment (0), Email this.

MR. FLEISCHER: Well, actually, I think the Securities and Exchange Commission is performing very ably on behalf of the American people. That when you take a look at the substantive -- the actions that they've taken in terms of the record enforcement decisions they have made, the amount of disgorging or taking money back from corporate executives who were defrauding their investors, it's very positive and very encouraging. It's the signs of an agency that is doing the people's business. Read more Comment (0), Email this.

MR. FLEISCHER: I think when people look at the track record of the Securities and Exchange Commission, they do see those results. I think a change has been made at the helm. This new leader, the President believes, is going to be able to carry out the mission of the Securities and Exchange Commission with ability and with confidence. Read more Comment (0), Email this.

MR. FLEISCHER: Right. Read more Comment (0), Email this.

MR. FLEISCHER: The biggest challenge is exactly as the President has outlined it, which is to restore investor confidence. And I think that investor confidence when they see just what the Securities and Exchange Commission is doing, just what the Attorney General's office is doing, or the Department of Justice is doing, in terms of taking action against corporate wrongdoers, it does give investors more confidence. Read more Comment (0), Email this.

MR. FLEISCHER: David, go ahead, and last question. Read more Comment (0), Email this.

Q Just the question about funding. The President announced more funding for the SEC. There's been some criticism in the past, recent past, from Democrats about the White House holding back on what was originally called for in the Sarbanes bill. Why a decision now to give more money? ... Read more Comment (0), Email this.

MR. FLEISCHER: No, I said nothing about any outcome of that nature. It would not be in my position to describe anything -- Read more Comment (0), Email this.

MR. FLEISCHER: It was. Read more Comment (0), Email this.

MR. FLEISCHER: That's correct. But I would not say anything more concrete than that. It is not my place to report for other nations. Read more Comment (0), Email this.

MR. FLEISCHER: And I'm not answering the question, Helen. (Laughter.) It was a positive meeting. And I don't want you to read into that. But the fact of the matter is -- Read more Comment (0), Email this.

MR. FLEISCHER: Because I'm not giving you the specificity of what cooperation means in that context. Read more Comment (0), Email this.

MR. FLEISCHER: Helen, I know you have seen diplomatic relations for many years, but often countries look at issues and want to work together because they have mutual agreement about policy. Do not presume that I am indicating what Turkey may or may not do. That is for Turkey, a sovereign government, to decide. And I give you no inclination one way or another about any future decisions that Turkey may or may not make.

But certainly, the President makes very clear in his meetings the threat that he believes the world faces from Saddam Hussein. And the President also believes very strongly that the stronger the world is, the greater the chance of averting war, because Saddam Hussein will indeed react to that strength of pressure to disarm. Read more Comment (0), Email this.

MR. FLEISCHER: Well, except for develop weapons of mass destruction, hide them from inspectors and full the world. Read more Comment (0), Email this.

MR. FLEISCHER: Well, not every country has invaded their neighbors the way Iraq has. Read more Comment (0), Email this.