20 U.S.C. § 1234d | Withholding

(a)

Discretionary authority over further payments under applicable program

section 1234c of this titleIn accordance with , 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.

(c)

Hearing

section 1234 of this titleThe hearing shall be held before the Office and shall be conducted in accordance with the rules prescribed pursuant to subsections (f) and (g) of .

(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

(2)

remands the decision of the Office.

Pub. L. 90–247, title IV, § 455 Pub. L. 95–561, title XII, § 1232Nov. 1, 197892 Stat. 2350 Pub. L. 100–297, title III, § 3501(a)Apr. 28, 1988102 Stat. 354 (, as added , , ; amended , , .)

Editorial Notes

Amendments

Pub. L. 100–297 section 1234g of this title1988— amended section generally, substituting provisions relating to withholding for provisions relating to judicial review. See .

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Pub. L. 100–297Apr. 28, 1988section 3501(b) of Pub. L. 100–297 section 1234 of this titleAmendment by effective 180 days after , but not applicable to recipients receiving written notice to return funds prior to that date, see , set out as a note under .