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Title 42, The Public Health and WelfareRelease 119-73not60

§290cc–31 Failure to Comply with Agreements

Title 42 › Chapter 6A— PUBLIC HEALTH SERVICE › Subchapter III–A— SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION › Part C— Projects for Assistance in Transition From Homelessness › § 290cc–31

Last updated Apr 5, 2026|Official source

Summary

The Secretary can make a State pay back money it got under the homeless assistance program if the Secretary finds the State did not spend the funds the way it promised in its application. If the State does not repay, the Secretary can take the money from future payments. The Secretary can also stop sending payments while checking spending. Before forcing a repayment or stopping money, the State must get a hearing. The Secretary cannot withhold funds for small mistakes and must restart payments when given reasonable proof of compliance. A State is not breaking its agreement just because it sometimes, while helping eligible homeless people, also gives services to homeless people who are not eligible.

Full Legal Text

Title 42, §290cc–31

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

(a)(1)The Secretary may, subject to subsection (c), require a State to repay any payments received by the State under section 290cc–21 of this title that the Secretary determines were not expended by the State in accordance with the agreements required to be contained in the application submitted by the State pursuant to section 290cc–29 of this title.
(2)If a State fails to make a repayment required in paragraph (1), the Secretary may offset the amount of the repayment against the amount of any payment due to be paid to the State under section 290cc–21 of this title.
(b)(1)The Secretary may, subject to subsection (c), withhold payments due under section 290cc–21 of this title if the Secretary determines that the State involved is not expending amounts received under such section in accordance with the agreements required to be contained in the application submitted by the State pursuant to section 290cc–29 of this title.
(2)The Secretary shall cease withholding payments from a State under paragraph (1) if the Secretary determines that there are reasonable assurances that the State will expend amounts received under section 290cc–21 of this title in accordance with the agreements referred to in such paragraph.
(3)The Secretary may not withhold funds under paragraph (1) from a State for a minor failure to comply with the agreements referred to in such paragraph.
(c)Before requiring repayment of payments under subsection (a)(1), or withholding payments under subsection (b)(1), the Secretary shall provide to the State an opportunity for a hearing.
(d)Notwithstanding any other provision of this part, a State receiving payments under section 290cc–21 of this title may not, with respect to any agreements required to be contained in the application submitted under section 290cc–29 of this title, be considered to be in violation of any such agreements by reason of the fact that the State, in the regular course of providing services under section 290cc–22(b) of this title to eligible homeless individuals, incidentally provides services to homeless individuals who are not eligible homeless individuals.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1990—Pub. L. 101–645 amended section generally, substituting provisions relating to failure to comply with agreements for provision relating to technical assistance.

Reference

Citations & Metadata

Citation

42 U.S.C. § 290cc–31

Title 42, The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60