Us Code § 1234h - Use of recovered funds
Full text of Us Code United States Code § 1234h — Use of recovered funds, with citation guidance and answers to common questions.
§ 1234h. Use of recovered funds
(a) Repayment to recipient; factors considered
Whenever the Secretary recovers funds paid to a recipient under a grant or cooperative agreement made under an applicable program because the recipient made an expenditure of funds that was not allowable, or otherwise failed to discharge its responsibility to account properly for funds, the Secretary may consider those funds to be additional funds available for that program and may arrange to repay to the recipient affected by that action an amount not to exceed 75 percent of the recovered funds if the Secretary determines that—
(1) the practices or procedures of the recipient that resulted in the violation of law have been corrected, and that the recipient is in all other respects in compliance with the requirements of that program, provided that the recipient was notified of any noncompliance with such requirements and given a reasonable period of time to remedy such noncompliance;
(2) the recipient has submitted to the Secretary a plan for the use of those funds pursuant to the requirements of that program and, to the extent possible, for the benefit of the population that was affected by the failure to comply or by the misuse of funds that resulted in the recovery; and
(3) the use of those funds in accordance with that plan would serve to achieve the purposes of the program under which the funds were originally paid.
(b) Terms and conditions of repayment
Any payments by the Secretary under this section shall be subject to such other terms and conditions as the Secretary considers necessary to accomplish the purposes of the affected programs, including—
(1) the submission of periodic reports on the use of funds provided under this section; and
(2) consultation by the recipient with students, parents, or representatives of the population that will benefit from the payments.
(c) Availability of funds
Notwithstanding any other provisions of law, the funds made available under this section shall remain available for expenditure for a period of time deemed reasonable by the Secretary, but in no case to exceed more than three fiscal years following the later of—
(1) the fiscal year in which final agency action under section 1234a(e) of this title is taken; or
(2) if such recipient files a petition for judicial review, the fiscal year in which final judicial action under section 1234g of this title is taken.
(d) Publication in Federal Register of notice of intent to enter into repayment arrangement
At least 30 days prior to entering into an arrangement under this section, the Secretary shall publish in the Federal Register a notice of intent to enter into such an arrangement and the terms and conditions under which payments will be made. Interested persons shall have an opportunity for at least 30 days to submit comments to the Secretary regarding the proposed arrangement.
(Pub. L. 90–247, title IV, §459, as added Pub. L. 100–297, title III, §3501(a), Apr. 28, 1988, 102 Stat. 356; amended Pub. L. 103–382, title II, §250(b), Oct. 20, 1994, 108 Stat. 3927.)
Editorial Notes
Amendments
1994—Subsec. (a)(1). Pub. L. 103–382, §250(b)(1), inserted before semicolon ", provided that the recipient was notified of any noncompliance with such requirements and given a reasonable period of time to remedy such noncompliance".
Subsec. (c). Pub. L. 103–382, §250(b)(2), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: "Notwithstanding any other provisions of law, the funds made available under this section shall remain available for expenditure for a period of time deemed reasonable by the Secretary, but in no case to exceed more than 3 fiscal years following the fiscal year in which final agency action under section 1234a(e) of this title is taken."
Statutory Notes and Related Subsidiaries
Effective Date
Section 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. 100–297, set out as an Effective Date of 1988 Amendment note under section 1234 of this title.
About This Section
20 U.S.C. § 1234h is part of Title 20 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
This section may be cited in legal writing as 20 U.S.C. § 1234h. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.
How to Read This Statute
Statutes are organized by title, chapter, section, and subsection. Pay attention to words like "shall," "may," "and," and "or," because they determine whether a requirement is mandatory or permissive and whether multiple conditions must all be met. Historical notes and amendments often appear at the end of a section.
Using This Page
This page is intended for research and educational use. Lawyers, students, journalists, and compliance professionals can use it as a starting point, but should always verify the current text through an official government source before relying on it for legal advice, filings, or compliance decisions.