---
kind: "section"
citation: "49 C.F.R. § 674.21"
title: "49"
number: "674.21"
heading: "Withholding of Federal financial assistance for noncompliance."
url: "https://uscodex.org/cfr/49/674.21"
---

# §674.21. Withholding of Federal financial assistance for noncompliance.

- (a) In making a decision to impose financial penalties as authorized by [49 U.S.C. 5329(e)](/usc/49/5329.md?p=e) and determining the nature and amount of the financial penalties, the Administrator shall consider the extent and circumstances of the noncompliance; the operating budgets of the SSOA and the rail fixed guideway public transportation systems that will be affected by the financial penalties; and such other matters as justice may require.
- (b) If a State fails to establish an SSO program that has been approved by the Administrator prior to a rail fixed guideway public transportation system entering the engineering or construction phase of development, FTA will be prohibited from obligating Federal financial assistance authorized under [49 U.S.C. 5338](/usc/49/5338.md) to any entity in the State that is otherwise eligible to receive that Federal financial assistance, in accordance with [49 U.S.C. 5329(e)(3)](/usc/49/5329.md?p=e-3).

## Notes

### Authority

Authority: 49 U.S.C. 5329; 49 CFR 1.91.

### Source

Source: 81 FR 14256, Mar. 16, 2016, as amended at 89 FR 83981, Oct. 18, 2024, unless otherwise noted.