Section 1416 (e) (6)

(6) Nature of withholding

    (A) Limitation

  • If the Secretary withholds further payments pursuant to paragraph (2) or (3), the Secretary may determine—
    • (i) that such withholding will be limited to programs or projects, or portions of programs or projects, that affected the Secretary’s determination under subsection (d)(2); or
    • (ii) that the State educational agency shall not make further payments under this subchapter to specified State agencies or local educational agencies that caused or were involved in the Secretary’s determination under subsection (d)(2).

    (B) Withholding until rectified

  • Until the Secretary is satisfied that the condition that caused the initial withholding has been substantially rectified—
    • (i) payments to the State under this subchapter shall be withheld in whole or in part; and
    • (ii) payments by the State educational agency under this subchapter shall be limited to State agencies and local educational agencies whose actions did not cause or were not involved in the Secretary’s determination under subsection (d)(2), as the case may be.

      • Severe Discrepancy
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      Last modified on November 7, 2019