42 U.S.C. § 15027 — Withholding of payments for planning, administration, and services

This section lets the Secretary stop paying a State under section 15022. First, the Secretary must give the Council and the designated State agency reasonable notice and a chance for a hearing. Then, the Secretary can act if either of these is true: (1) the Council or agency substantially failed to follow the State-plan rules required by section 15024 — especially the rules on plan goals in section 15024(c)(4)(A) and on the 20% service-demonstration limit in section 15024(c)(5)(B)(vii) — or the Council-membership rules in section 15025(b)(3); or (2) the Council or agency substantially failed to follow the Secretary's regulations for this part. If either happens, the Secretary must tell the Council and agency that no further payments will be made under section 15022 — either to the whole State or just for the activities that failed to comply, at the Secretary's discretion. Payments stay stopped until the Secretary is satisfied the failure is fixed. Until then, the Secretary either makes no more payments to the State, or limits payments to activities that are still in compliance.