CFR > Title 31 - Money and Finance: Treasury > SUBTITLE B—Regulations Relating to Money and Finance > CHAPTER II—FISCAL SERVICE, DEPARTMENT OF THE TREASURY (parts 200 to 391) > SUBCHAPTER A—FINANCIAL MANAGEMENT SERVICE (parts 200 to 285) > PART 205—RULES AND PROCEDURES FOR EFFICIENT FEDERAL-STATE FUNDS TRANSFERS > SUBPART B—Rules Applicable to Federal Assistance Programs Not Included in a Treasury-State Agreement (§205.32 to §205.35) > 205.35—What is the result of Federal Program Agency or State non-compliance?

205.35—What is the result of Federal Program Agency or State non-compliance?

We may require a State and a Federal Program Agency to make the affected Federal assistance programs subject to subpart A of this part, consistent with Federal assistance program purposes and regulations, notwithstanding any other provision of this part, if:
(a) A State demonstrates an unwillingness or inability to comply with this subpart B; or
(b) A Federal Program Agency demonstrates an unwillingness or inability to make Federal funds available to a State as needed to carry out a Federal assistance program.