Feldman picks at DiIulio’s characterization of the Founders, arguing that DiIulio, in effect, reads them through rose-colored glasses on religious matters. He’s right, though the line he draws is itself a little misleading. Madison did indeed oppose non-preferential aid to religious denominations in Virginia, but I’m not sure that we can conclude from that that he would have opposed non-preferential government contracting with faith-based (and secular) charities. Giving money to churches for "inherently religious" activities is one thing; funding their social service efforts is something else.
My own measured but ultimately unfavorable review of DiIulio’s book will appear in an upcoming CRB.