CFR > Title 45 - Public Welfare > SUBTITLE B—Regulations Relating to Public Welfare > CHAPTER II—OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES (parts 200 to 288) > PART 261—ENSURING THAT RECIPIENTS WORK > SUBPART E—What Penalties Apply to States Related to Work Requirements? (§261.50 to §261.57) > 261.53—May a State correct the problem before incurring a penalty?

261.53—May a State correct the problem before incurring a penalty?

(a) Yes. A State may enter into a corrective compliance plan to remedy a problem that caused its failure to meet a participation rate, as specified at § 262.6 of this chapter.
(b) To qualify for a penalty reduction under § 262.6(j)(1) of this chapter, based on significant progress towards correcting a violation, a State must reduce the difference between the participation rate it achieved in the year for which it is subject to a penalty and the rate applicable during the penalty year (adjusted for any caseload reduction credit determined pursuant to subpart D of this part) by at least 50 percent.