withholding of payments

withholding of payments Sec. 206. Whenever the Secretary, after reasonable notice and opportunity for hearing to the State agency designated as provided in section 204(a)(1), finds— (1) that the State agency is not complying substantially with the provisions required by section 204 to be included in its State plan, or with regulations under this title; (2) that any assurance required to be given in an application filed under section 205 is not being or cannot be carried out; (3) that there is a substantial failure to carry out plans and specifications approved by the Secretary under section 205; or (4) that adequate State funds are not being provided annually for the direct administration of the State plan, the Secretary may forthwith notify the State agency that— (5) no further payments will be made to the State from allotments under this title; or (6) no further payments will be made from allotments under this title for any project or projects designated by the Secretary as being affected by the action or inaction referred to in paragraph (1), (2), (3), or (4) of this section, 77 Stat. 294as the Secretary may determine to be appropriate under the circumstances; anti, except with regard to any project for which the application has already been approved and which is not directly affected, further payments from such allotments may be withheld, in whole or in part, until there is no longer any failure to comply (or to carry out the assurance or plans and specifications or to provide adequate State funds, as the case may be) or, if such compliance (or other action) is impossible, until the State repays or arranges for the repayment, of Federal moneys to which the recipient was not entitled.