# 34 CFR § 300.605: Withholding funds

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-34-300.605

## Section

- **Citation:** 34 CFR § 300.605
- **Heading:** Withholding funds
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 34—Education > Subtitle B—Regulations of the Offices of the Department of Education > CHAPTER III—OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION > PART 300—ASSISTANCE TO STATES FOR THE EDUCATION OF CHILDREN WITH DISABILITIES > Subpart F—Monitoring, Enforcement, Confidentiality, and Program Information > Monitoring, Technical Assistance, and Enforcement

## Text

(a) Opportunity for hearing. Prior to withholding any funds under Part B of the Act, the Secretary provides reasonable notice and an opportunity for a hearing to the SEA involved, pursuant to the procedures in §§ 300.180 through 300.183.
(b) Suspension. Pending the outcome of any hearing to withhold payments under paragraph (a) of this section, the Secretary may suspend payments to a recipient, suspend the authority of the recipient to obligate funds under Part B of the Act, or both, after the recipient has been given reasonable notice and an opportunity to show cause why future payments or authority to obligate funds under Part B of the Act should not be suspended.
(c) Nature of withholding. (1) If the Secretary determines that it is appropriate to withhold further payments under § 300.604(b)(2) or (c)(2), the Secretary may determine—
(i) That the withholding will be limited to programs or projects, or portions of programs or projects, that affected the Secretary's determination under § 300.603(b)(1); or
(ii) That the SEA must not make further payments under Part B of the Act to specified State agencies or LEAs that caused or were involved in the Secretary's determination under § 300.603(b)(1).
(2) Until the Secretary is satisfied that the condition that caused the initial withholding has been substantially rectified—
(i) Payments to the State under Part B of the Act must be withheld in whole or in part; and
(ii) Payments by the SEA under Part B of the Act must be limited to State agencies and LEAs whose actions did not cause or were not involved in the Secretary's determination under § 300.603(b)(1), as the case may be.
(Authority: 20 U.S.C. 1416(e)(4), (e)(6))

## Nearby sections

- [34 CFR § 300.600 § 300.600 State monitoring and enforcement.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.600.md)
- [34 CFR § 300.601 § 300.601 State performance plans and data collection.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.601.md)
- [34 CFR § 300.602 § 300.602 State use of targets and reporting.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.602.md)
- [34 CFR § 300.603 § 300.603 Secretary's review and determination regarding State performance.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.603.md)
- [34 CFR § 300.604 § 300.604 Enforcement.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.604.md)
- [34 CFR § 300.605 § 300.605 Withholding funds.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.605.md)
- [34 CFR § 300.606 § 300.606 Public attention.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.606.md)
- [34 CFR § 300.607 § 300.607 Divided State agency responsibility.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.607.md)
- [34 CFR § 300.608 § 300.608 State enforcement.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.608.md)
- [34 CFR § 300.609 § 300.609 Rule of construction.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.609.md)
- [34 CFR § 300.610 § 300.610 Confidentiality.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.610.md)
- [34 CFR § 300.611 § 300.611 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.611.md)
- [34 CFR § 300.612 § 300.612 Notice to parents.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.612.md)
- [34 CFR § 300.613 § 300.613 Access rights.](https://www.frixlaw.com/law-library/statutes/ecfr-34-300.613.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-34-300.605. Check the current official text before relying on it. Not legal advice.