This is a very big deal from the Trump Administration and progressive activists are spitting mad about it. Under previous Obama era interpretations of law, religious organizations could not help the government if the organizations maintained Biblical world views on sexual ethics for their staff.
Put another way, a church run non-profit could not enter into a contract with the government to provide a good or service if the church run non-profit insisted on Biblically based marriage and rejected secular notions of gender.
If a church wanted to help the federal government feed the poor, the church had to allow its employees to embrace transgenderism and gay marriage. The result is that many faith based organizations that do great work were prohibited from serving the public. The gay rights activists decided it was far more important to force Christian and Muslim organizations to abandon their faith teachings then to feed the poor.
The Trump Administration is changing this with new rules. “Today’s proposed rule helps to ensure the civil rights of religious employers are protected,” Acting U.S. Secretary of Labor Patrick Pizzella remarked. “As people of faith with deeply held religious beliefs are making decisions on whether to participate in federal contracting, they deserve clear understanding of their obligations and protections under the law.”
This decision is consistent with recent Supreme Court precedent and values the First Amendment over leftwing social-engineering. The Trump Administration should be applauded.