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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 10:51:44 -04:00

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LegalText 20 U.S.C. § 1234d Withholding us united_states_code code_section 20 EDUCATION 31 GENERAL PROVISIONS CONCERNING EDUCATION 1234d 20 U.S.C. § 1234d current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc20@119-100.zip /us/usc/t20/s1234d data/legal/raw/us/code/title-20/usc20.xml 7c85c37c161e95596fca78c01db5ab87df06d73ddc4613d1a17cc1e7e673f745 6022872c5d6a3398d1728f82f8cefcb58db9f5ff548e2a636450be1e4a8bb052 1d467479f0189bb6409a5c0f56517886ccf34fb0b3da00c391ef08ce7d75d310 2026-07-04 official
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20 U.S.C. § 1234d - Withholding

Text

(a) Discretionary authority over further payments under applicable program In accordance with section 1234c of this title, the Secretary may withhold from a recipient, in whole or in part, further payments (including payments for administrative costs) under an applicable program.

(b) Notice requirements Before withholding payments, the Secretary shall notify the recipient, in writing, of—

(1) the intent to withhold payments;

(2) the factual and legal basis for the Secretarys belief that the recipient has failed to comply substantially with a requirement of law; and

(3) an opportunity for a hearing to be held on a date at least 30 days after the notification has been sent to the recipient.

(c) Hearing The hearing shall be held before the Office and shall be conducted in accordance with the rules prescribed pursuant to subsections (f) and (g) of section 1234 of this title.

(d) Suspension of payments, authorities, etc. Pending the outcome of any hearing under this section, the Secretary may suspend payments to a recipient, suspend the authority of the recipient to obligate Federal funds, or both, after such recipient has been given reasonable notice and an opportunity to show cause why future payments or authority to obligate Federal funds should not be suspended.

(e) Findings of fact Upon review of a decision of the Office by the Secretary, the findings of fact by the Office, if supported by substantial evidence, shall be conclusive. However, the Secretary, for good cause shown, may remand the case to the Office to take further evidence, and the Office may thereupon make new or modified findings of fact and may modify its previous action. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.

(f) Final agency action The decision of the Office in any hearing under this section shall become final agency action 60 days after the recipient receives written notice of the decision unless the Secretary either—

(1) modifies or sets aside the decision, in whole or in part, in which case the decision of the Secretary shall become final agency action when the recipient receives written notice of the Secretarys action; or

(2) remands the decision of the Office.

(Pub. L. 90247, title IV, § 455, as added Pub. L. 95561, title XII, § 1232, Nov. 1, 1978, 92 Stat. 2350; amended Pub. L. 100297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 354.)

Notes

Editorial Notes

Amendments1988—Pub. L. 100297 amended section generally, substituting provisions relating to withholding for provisions relating to judicial review. See section 1234g of this title.

Statutory Notes and Related Subsidiaries

Effective Date of 1988 AmendmentAmendment by Pub. L. 100297 effective 180 days after Apr. 28, 1988, but not applicable to recipients receiving written notice to return funds prior to that date, see section 3501(b) of Pub. L. 100297, set out as a note under section 1234 of this title.