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) > 261.54—Is a State subject to any other penalty relating to its work program?

261.54—Is a State subject to any other penalty relating to its work program?

(a) If we determine that, during a fiscal year, a State has violated section 407(e) of the Act, relating to imposing penalties against individuals, we must reduce the SFAG payable to the State.
(b) The penalty amount for a fiscal year will equal between one and five percent of the adjusted SFAG.
(c) We impose a penalty by reducing the SFAG payable for the fiscal year that immediately follows our final determination that a State is subject to a penalty and our final determination of the penalty amount.