Title 42The Public Health and WelfareRelease 119-73

§5052 Suspension and termination of financial assistance; procedures; notice and hearing; emergency situations; refunding applications

Title 42 › Chapter CHAPTER 66— - DOMESTIC VOLUNTEER SERVICES › Subchapter SUBCHAPTER IV— - ADMINISTRATION AND COORDINATION › § 5052

Last updated Apr 6, 2026|Official source

Summary

The Director can stop or end payments under any grant or contract if they find a serious failure to follow the contract rules. The Director must use set procedures to protect recipients. Payments can only be suspended for rule-breaking in emergency situations and only for up to 30 days. If an application for more funding might be denied, the recipient must get notice at least 75 days before the denial, with the reasons, and a chance to explain why it should not be denied. If denial is for noncompliance, the recipient gets an informal hearing before an impartial hearing officer agreed to by both the recipient and the Agency. Payments cannot be terminated for noncompliance unless the recipient has reasonable notice and a full and fair hearing. Any required hearings or meetings must be held in places that are convenient for the recipient so everyone has equal access.

Full Legal Text

Title 42, §5052

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Director is authorized, in accordance with the provisions of this section, to suspend further payments or to terminate payments under any contract or grant providing assistance under this chapter, whenever the Director determines there is a material failure to comply with the applicable terms and conditions of any such grant or contract. The Director shall prescribe procedures to insure that—
(1)assistance under this chapter shall not be suspended for failure to comply with applicable terms and conditions, except in emergency situations for thirty days;
(2)an application for refunding under this chapter may not be denied unless the recipient has been given (A) notice at least 75 days before the denial of such application of the possibility of such denial and the grounds for any such denial, and (B) opportunity to show cause why such action should not be taken;
(3)in any case where an application for refunding is denied for failure to comply with the terms and conditions of the grant or contract award, the recipient shall be afforded an opportunity for an informal hearing before an impartial hearing officer, who has been agreed to by the recipient and the Agency; and
(4)assistance under this chapter shall not be terminated for failure to comply with applicable terms and conditions unless the recipient has been afforded reasonable notice and opportunity for a full and fair hearing.
(b)In order to assure equal access to all recipients, such hearings or other meetings as may be necessary to fulfill the requirements of this section shall be held at locations convenient to the recipient agency.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 93–113, Oct. 1, 1973, 87 Stat. 394, known as the Domestic Volunteer Service Act of 1973, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 4950 of this title and Tables.

Amendments

1986—Subsec. (a). Pub. L. 99–551 substituted “the Director” for “he” before “determines” in first sentence. 1984—Subsec. (a). Pub. L. 98–288 designated existing provisions as subsec. (a), substituted a semicolon for “nor shall an application for refunding under this chapter be denied, unless the recipient has been given reasonable notice and opportunity to show why such action should not be taken; and” in par. (1), added pars. (2) and (3), redesignated former par. (2) as (4), and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–551 effective Oct. 1, 1986, except as otherwise provided, see section 11 of Pub. L. 99–551, set out as an

Effective Date

note under section 4950 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 5052

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73