---
kind: "section"
citation: "49 C.F.R. § 384.401"
title: "49"
number: "384.401"
heading: "Withholding of funds based on noncompliance."
url: "https://uscodex.org/cfr/49/384.401"
---

# §384.401. Withholding of funds based on noncompliance.

- (a) **Following the first year of noncompliance.** An amount up to 4 percent of the Federal-aid highway funds required to be apportioned to any State under 23 U.S.C. [104(b)(1)](/usc/23/104.md?p=b-1) and [(2)](/usc/23/104.md?p=b-2) shall be withheld from a State on the first day of the fiscal year following such State's first year of noncompliance under this part.
- (b) **Following second and subsequent year(s) of noncompliance.** An amount up to 8 percent of the Federal-aid highway funds required to be apportioned to any State under 23 U.S.C. [104(b)(1)](/usc/23/104.md?p=b-1) and [(2)](/usc/23/104.md?p=b-2) shall be withheld from a State on the first day of the fiscal year following such State's second or subsequent year(s) of noncompliance under this part.

## Notes

### Amendments

[86 FR 35642, July 7, 2021]

### Authority

Authority: 49 U.S.C. 31136, 31301, et seq., and 31502; secs. 103 and 215 of Pub. L. 106-159, 113 Stat. 1748, 1753, 1767; sec. 32934 of Pub. L. 112-141, 126 Stat. 405, 830; sec. 5524 of Pub. L. 114-94, 129 Stat. 1312, 1560; and 49 CFR 1.87.

### Source

Source: 59 FR 26039, May 18, 1994, unless otherwise noted.

### Amendments

[86 FR 35642, July 7, 2021]