604.13—Denial of eligibility.
(a)
If the Secretary finds that there is a failure to comply substantially with the assurances of § 604.10 then the Secretary, after giving a State reasonable notice and the opportunity for a hearing, shall notify the State that it is ineligible to participate in any applicable program.
(b)
To regain eligibility, a State must satisfy the Secretary that the failure to comply has been remedied.