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An executive order President Obama signed Monday prohibiting sexual orientation discrimination in federal hiring may not immediately affect many religious organizations, but leaders are still raising their eyebrows.

The executive order amends a 1965 order prohibiting some forms of discrimination by federal contractors. The old text forbade contractors from discriminating "against any employee or applicant for employment because of race, color, religion, sex, or national origin." Obama's revision adds "sexual orientation" and "gender identity" between "sex" and "national origin."

Many religious organizations, such as World Vision, World Relief, and Catholic Charities partner with the federal government, but often receive grants, not contracts, so are not affected by the order, said Stanley Carlson-Thies, director of the Institutional Religious Freedom Alliance.

Religious organizations with federal grants are currently protected: A 2007 religious exemption memo from the federal attorney general's office says the Religious Freedom Restoration Act "is reasonably construed" to exempt World Vision (and other religious organizations that administer federal funds through social services programs) from religious nondiscrimination requirements on other federal grantees.

The executive order also lets stand a George W. Bush-era provision allowing religious contractors to hire employees "of a particular religion," said Thomas Berg, a professor of law and public policy at the University of St. Thomas (Minn.).

"Several federal courts have held that this language, incorporated from elsewhere in antidiscrimination law, allows religious organizations ...

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