Charitable Choice Expansion Act of 1998

Charitable Choice Expansion Act of 1998 - Requires the Federal Government, or a State or local government receiving Federal funds, when authorized to use a nongovernmental organization to provide assistance to beneficiaries under a program, to consider religious organizations on the same basis as other nongovernmental organizations to provide such assistance, so long as the program is implemented in a manner consistent with the Establishment Clause of the Constitution. Excepts from such requirement activities carried out under: (1) Federal programs providing education to children eligible to attend elementary or secondary schools (except for activities to assist students in obtaining the recognized equivalents of secondary school diplomas); (2) the Higher Education Act of 1965; (3) the Head Start Act; and (4) the Child Care and Development Block Grant Act of 1990.

Declares that a religious organization that provides assistance under such a program shall retain its independence from Federal, State, and local governments and shall not be required to alter its form of internal governance or remove religious art, icons, scripture, or other symbols.

Requires the appropriate governmental entity, if a beneficiary or applicant for assistance under such a program has an objection to the religious character of the organization providing the assistance, to provide such assistance through an alternative organization. Requires the governmental entity to ensure that notice is provided to beneficiaries and applicants of the right to make such objection.

Prohibits a religious organization from discriminating against a beneficiary or applicant in rendering assistance based on religion or religious belief.

Requires any religious organization providing assistance under such a program to segregate government funds provided under such program into a separate account. Subjects only such funds to audit by the government.

Authorizes civil actions by parties alleging that their rights under this Act have been violated by the Federal Government or by a State or local government.

Prohibits any funds provided through a grant or contract to a religious organization to provide assistance under any such program from being expended for sectarian worship, instruction, or proselytization.