The San Francisco organization, STOP AIDS, has been given what is effectively a cease-and-desist order:

The Bush administration yesterday ordered a San Francisco AIDS prevention group to immediately halt a handful of explicit programs that "appear to encourage or promote sexual activity" or risk losing as much as $500,000 a year in federal grants.

...

After a two-day site review last year, CDC investigators concluded that the "design and delivery of STOP AIDS prevention activities was based on current accepted behavioral science theories in the area of health promotion," Gerberding wrote in February.

(http://www.washingtonpost.com/wp-dyn/articles/A56979-2003Jun13.html)
Note that the Post asks for some small boon of demographic information before letting you view their stories.

Shortly after that second quote, the article indicates that CDC Director Julie L. Gerberding (referred to above) had decided that the local review process was no longer sufficient and that she was planning on changing it.

This begs the question of what does warrant funding– abstinence-only programs? Do they think that will be at all effective in stopping the spread of HIV?