§1232i Limitations on withholding of Federal assistance

Summary

Schools, colleges, local education agencies, preschools, and similar educational places must not lose federal money just because they refuse to give out personal information about students or their families to a federal office or other third party on privacy grounds, except where another federal privacy rule allows sharing. That refusal also cannot be used to deny, delay, or cut future funding in later fiscal years. If there is a disagreement, the school must get fair notice and a chance for a hearing. It is also not allowed for the Secretary to cut or limit federal aid because a college did not use quotas or numerical rules that act like quotas in admitting students. The Secretary may only limit, delay, or stop federal aid for failure to follow civil‑rights laws after giving due process. Due process must include at least 30 days’ written notice naming the program involved; a hearing before an administrative law judge within 60 days (unless both sides agree to more time); the judge must finish the hearing and decide within 90 days (with one possible extension of up to 60 days); any deferral of funds may last no more than 15 days after that decision unless the record shows noncompliance; and procedures must be in place to make needed funds available to follow the judge’s decision.