5 U.S.C. § 1506 — Orders; withholding loans or grants; limitations

(a) When the Merit Systems Protection Board finds either of the following, the Board must make and certify to the appropriate Federal agency an order requiring that agency to withhold from its loans or grants to the named State or local agency an amount equal to two years of pay at the rate the officer or employee was receiving when the violation occurred:

(1) A State or local officer or employee was not removed from office or employment within 30 days after notice that the Board determined the person violated section 1502 of this title and that the violation warranted removal; or

(2) The officer or employee was removed and, within 18 months after removal, was appointed to an office or employment in the same State—or, for the District of Columbia, in the District of Columbia—in a State or local agency that does not receive loans or grants from a Federal agency.

If the State or local agency where the appointment was made within 18 months after removal does receive loans or grants from a Federal agency, the Board's order must direct that the withholding come from that State or local agency. This section does not define "warrants removal."

(b) The Board must send notice of the order by registered or certified mail to the State or local agency from which the money will be withheld. After the order becomes final, the Federal agency receiving the certified order must withhold the amount according to the order. Except as provided by section 1508 of this title, a Board determination or order becomes final 30 days after the notice of the determination or order is mailed.

(c) The Board may not require money to be withheld from a loan or grant that a State or local agency pledged as security for its bonds or notes if withholding that money would jeopardize payment of the bonds' or notes' principal or interest. This section does not define "jeopardize."