(a) Discretionary authority over further payments under applicable program
In accordance with section
1234c of this title, the Secretary may withhold from a recipient, in whole or in part, further payments (including payments for administrative costs) under an applicable program.
(b) Notice requirements
Before withholding payments, the Secretary shall notify the recipient, in writing, of—
(1)the intent to withhold payments;
(2)the factual and legal basis for the Secretary’s belief that the recipient has failed to comply substantially with a requirement of law; and
(3)an opportunity for a hearing to be held on a date at least 30 days after the notification has been sent to the recipient.
The hearing shall be held before the Office and shall be conducted in accordance with the rules prescribed pursuant to subsections (f) and (g) ofsection
1234 of this title.
(d) Suspension of payments, authorities, etc.
Pending the outcome of any hearing under this section, the Secretary may suspend payments to a recipient, suspend the authority of the recipient to obligate Federal funds, or both, after such recipient has been given reasonable notice and an opportunity to show cause why future payments or authority to obligate Federal funds should not be suspended.
(e) Findings of fact
Upon review of a decision of the Office by the Secretary, the findings of fact by the Office, if supported by substantial evidence, shall be conclusive. However, the Secretary, for good cause shown, may remand the case to the Office to take further evidence, and the Office may thereupon make new or modified findings of fact and may modify its previous action. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.
(f) Final agency action
The decision of the Office in any hearing under this section shall become final agency action 60 days after the recipient receives written notice of the decision unless the Secretary either—
(1)modifies or sets aside the decision, in whole or in part, in which case the decision of the Secretary shall become final agency action when the recipient receives written notice of the Secretary’s action; or
1988—Pub. L. 100–297amended section generally, substituting provisions relating to withholding for provisions relating to judicial review. See section
1234g of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–297effective 180 days after Apr. 28, 1988, but not applicable to recipients receiving written notice to return funds prior to that date, see section 3501(b) ofPub. L. 100–297, set out as a note under section
1234 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.