withholding of payments

withholding of payments Sec. 136. Whenever, the Secretary after reasonable notice and opportunity for hearing to the State agency designated as provided in section 134(a)(1), finds— (1) that the State agency is not complying substantially with the provisions required by section 134 to be included in its State plan or with regulations under this part; (2) that any assurance required to be given in an application filed under section 135 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 135; 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 part; or (6) no further payments will be made from allotments under this part 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, as the Secretary may determine to be appropriate under the circumstances; and, 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.