WASHINGTON -- President Bush is enacting key pieces of his faith-based initiative, giving churches and religious organizations a leg up in the competition for federal money, according to The Associated Press.

Under Bush's directive, religious organizations refusing to hire people of any faith can still win federal contracts. New regulations from the departments of Health and Human Services and Housing and Urban Development also preserve the right of religious groups providing certain government-financed services to hire based on religion.

The executive order calls for religious groups to be treated equally with others in all respects, according to government officials who spoke to the AP on condition of anonymity. Federal contractors also can no longer be denied federal money for displaying religious icons, such as a cross or menorah.

Bush's faith-based initiative won favor early in his term with the House, but the Senate refused to give even a watered-down version that focused on tax breaks for charitable giving, according to the AP.

The executive order restates that organizations cannot use federal funds to preach a particular faith, worship or provide religious instruction.

Joe Conn, a spokesman for Americans United for Separation of Church and State, said religious groups would be allowed to discriminate in hiring while other groups could not.

"It's not equal treatment," he said. "It's special treatment for religious groups. ... In essence, the government is going to be funding religious discrimination."

In other administrative changes being announced by Bush, the Federal Emergency Management Agency will now allow religious nonprofits such as schools and soup kitchens to get federal aid after natural disasters. The change was made retroactive to the beginning of Bush's term.