--- kind: "section" citation: "42 U.S.C. § 300x–55" title: "42" title_heading: "The Public Health and Welfare" number: "300x–55" heading: "Failure to comply with agreements" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/42/300x-55" units: - "Chapter 6A — Public Health Service" - "Subchapter XVII — Block Grants" - "Part B — Block Grants Regarding Mental Health and Substance Use" - "Subpart iii — general provisions" --- # §300x–55. Failure to comply with agreements - (a) **Suspension or termination of payments—** Subject to [subsection (e)](#e), if the [Secretary](/usc/42/201.md?p=c) determines that a [State](/usc/42/201.md?p=f) has materially failed to comply with the agreements or other conditions required for the receipt of a grant under the [program involved](/usc/42/300x–64.md?p=a-1), the [Secretary](/usc/42/201.md?p=c) may in whole or in part suspend payments under the grant, terminate the grant for cause, or employ such other remedies (including the remedies provided for in subsections [(b)](#b) and [(c)](#c)) as may be legally available and appropriate in the circumstances involved. - (b) **Repayment of payments—** - (1) **In general—** Subject to [subsection (e)](#e), the [Secretary](/usc/42/201.md?p=c) may require a [State](/usc/42/201.md?p=f) to repay with interest any payments received by the [State](/usc/42/201.md?p=f) under section [300x](/usc/42/300x.md) or [300x–21](/usc/42/300x–21.md) of this title that the [Secretary](/usc/42/201.md?p=c) determines were not expended by the [State](/usc/42/201.md?p=f) in accordance with the agreements required under the [program involved](/usc/42/300x–64.md?p=a-1). - (2) **Offset against payments—** If a [State](/usc/42/201.md?p=f) fails to make a repayment required in [paragraph (1)](#b-1), the [Secretary](/usc/42/201.md?p=c) may offset the amount of the repayment against the amount of any payment due to be paid to the [State](/usc/42/201.md?p=f) under the [program involved](/usc/42/300x–64.md?p=a-1). - (c) **Withholding of payments—** - (1) **In general—** Subject to subsections [(e)](#e) and [(g)(3)](#g-3), the [Secretary](/usc/42/201.md?p=c) may withhold payments due under section [300x](/usc/42/300x.md) or [300x–21](/usc/42/300x–21.md) of this title if the [Secretary](/usc/42/201.md?p=c) determines that the [State](/usc/42/201.md?p=f) involved is not expending amounts received under the [program involved](/usc/42/300x–64.md?p=a-1) in accordance with the agreements required under the [program](/usc/42/274l–1.md?p=4). - (2) **Termination of withholding—** The [Secretary](/usc/42/201.md?p=c) shall cease withholding payments from a [State](/usc/42/201.md?p=f) under [paragraph (1)](#c-1) if the [Secretary](/usc/42/201.md?p=c) determines that there are reasonable assurances that the [State](/usc/42/201.md?p=f) will expend amounts received under the [program involved](/usc/42/300x–64.md?p=a-1) in accordance with the agreements required under the [program](/usc/42/274l–1.md?p=4). - (d) **Applicability of remedies to certain violations—** - (1) **In general—** With respect to agreements or other conditions for receiving a grant under the [program involved](/usc/42/300x–64.md?p=a-1), in the case of the failure of a [State](/usc/42/201.md?p=f) to maintain material compliance with a condition referred to in [paragraph (2)](#d-2), the provisions for noncompliance with the condition that are provided in the section establishing the condition shall apply in lieu of subsections [(a)](#a) through [(c)](#c) of this section. - (2) **Relevant conditions—** For purposes of [paragraph (1)](#d-1): - (A) In the case of the [program](/usc/42/274l–1.md?p=4) established in [section 300x of this title](/usc/42/300x.md), a condition referred to in this paragraph is the condition established in [section 300x–1(d) of this title](/usc/42/300x–1.md?p=d) and the condition established in [section 300x–4(b) of this title](/usc/42/300x–4.md?p=b). - (B) In the case of the [program](/usc/42/274l–1.md?p=4) established in [section 300x–21 of this title](/usc/42/300x–21.md), a condition referred to in this paragraph is the condition established in [section 300x–26 of this title](/usc/42/300x–26.md) and the condition established in [section 300x–30 of this title](/usc/42/300x–30.md). - (e) **Opportunity for hearing—** Before taking action against a [State](/usc/42/201.md?p=f) under any of subsections [(a)](#a) through [(c)](#c) (or under a section referred to in [subsection (d)(2)](#d-2), as the case may be), the [Secretary](/usc/42/201.md?p=c) shall provide to the [State](/usc/42/201.md?p=f) involved adequate notice and an opportunity for a hearing. - (f) **Requirement of hearing in certain circumstances—** - (1) **In general—** If the [Secretary](/usc/42/201.md?p=c) receives a complaint that a [State](/usc/42/201.md?p=f) has failed to maintain material compliance with the agreements or other conditions required for receiving a grant under the [program involved](/usc/42/300x–64.md?p=a-1) (including any condition referred to for purposes of [subsection (d)](#d)), and there appears to be reasonable evidence to support the complaint, the [Secretary](/usc/42/201.md?p=c) shall promptly conduct a hearing with respect to the complaint. - (2) **Finding of material noncompliance—** If in a hearing under [paragraph (1)](#f-1) the [Secretary](/usc/42/201.md?p=c) finds that the [State](/usc/42/201.md?p=f) involved has failed to maintain material compliance with the agreement or other condition involved, the [Secretary](/usc/42/201.md?p=c) shall take such action under this section as may be appropriate to ensure that material compliance is so maintained, or such action as may be required in a section referred to in [subsection (d)(2)](#d-2), as the case may be. - (g) **Certain investigations—** - (1) **Requirement regarding Secretary—** The [Secretary](/usc/42/201.md?p=c) shall in fiscal year 1994 and each subsequent fiscal year conduct in not less than 10 [States](/usc/42/201.md?p=f) investigations of the expenditure of grants received by the [States](/usc/42/201.md?p=f) under section [300x](/usc/42/300x.md) or [300x–21](/usc/42/300x–21.md) of this title in order to evaluate compliance with the agreements required under the [program involved](/usc/42/300x–64.md?p=a-1). - (2) **Provision of records, etc., upon request—** Each [State](/usc/42/201.md?p=f) receiving a grant under section [300x](/usc/42/300x.md) or [300x–21](/usc/42/300x–21.md) of this title, and each entity receiving funds from the grant, shall make appropriate books, documents, papers, and records available to the [Secretary](/usc/42/201.md?p=c) or the [Comptroller General](/usc/42/300x–64.md?p=b-1), or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor. - (3) **Limitations on authority—** The [Secretary](/usc/42/201.md?p=c) may not institute proceedings under [subsection (c)](#c) unless the [Secretary](/usc/42/201.md?p=c) has conducted an investigation concerning whether the [State](/usc/42/201.md?p=f) has expended payments under the [program involved](/usc/42/300x–64.md?p=a-1) in accordance with the agreements required under the [program](/usc/42/274l–1.md?p=4). Any such investigation shall be conducted within the [State](/usc/42/201.md?p=f) by qualified investigators. ## Source credit (July 1, 1944, ch. 373, title XIX, § 1945, as added Pub. L. 102–321, title II, § 203(a), July 10, 1992, 106 Stat. 405.)