---
kind: "section"
citation: "42 U.S.C. § 1396c"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1396c"
heading: "Operation of State plans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1396c"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter XIX — Grants to States for Medical Assistance Programs"
---

# §1396c. Operation of State plans


If the [Secretary](/usc/42/1301.md?p=a-6), after reasonable notice and opportunity for hearing to the [State agency](/usc/42/629a.md?p=a-3) administering or supervising the [administration](/usc/42/1301.md?p=a-10) of the [State](/usc/42/619.md?p=5) plan approved under this subchapter, finds—

- (1) that the plan has been so changed that it no longer complies with the provisions of [section 1396a of this title](/usc/42/1396a.md); or
- (2) that in the [administration](/usc/42/1301.md?p=a-10) of the plan there is a failure to comply substantially with any such provision;

the [Secretary](/usc/42/1301.md?p=a-6) shall notify such [State agency](/usc/42/629a.md?p=a-3) that further payments will not be made to the [State](/usc/42/619.md?p=5) (or, in his discretion, that payments will be limited to categories under or parts of the [State](/usc/42/619.md?p=5) plan not affected by such failure), until the [Secretary](/usc/42/1301.md?p=a-6) is satisfied that there will no longer be any such failure to comply. Until he is so satisfied he shall make no further payments to such [State](/usc/42/619.md?p=5) (or shall limit payments to categories under or parts of the [State](/usc/42/619.md?p=5) plan not affected by such failure).


## Source credit

(Aug. 14, 1935, ch. 531, title XIX, § 1904, as added Pub. L. 89–97, title I, § 121(a), July 30, 1965, 79 Stat. 351.)

## Notes

### Editorial Notes

### Constitutionality

For information regarding the constitutionality of section 121(a) of Pub. L. 89–97, enacting this section, see the Table of Laws Held Unconstitutional in Whole or in Part by the Supreme Court on the Constitution Annotated website, constitution.congress.gov.