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2 CFR §200.339

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
The Federal agency or pass-through entity may implement specific conditions if the recipient or subrecipient fails to comply with the U.S. Constitution, Federal statutes, regulations, or terms and conditions of the Federal award. See § 200.208 for additional information on specific conditions. When the Federal agency or pass-through entity determines that noncompliance cannot be remedied by imposing specific conditions, the Federal agency or pass-through entity may take one or more of the following actions:
  1. (a)Temporarily withhold payments until the recipient or subrecipient takes corrective action.
  2. (b)Disallow costs for all or part of the activity associated with the noncompliance of the recipient or subrecipient.
  3. (c)Suspend or terminate the Federal award in part or in its entirety.
  4. (d)Initiate suspension or debarment proceedings as authorized in 2 CFR part 180 and the Federal agency's regulations, or for pass-through entities, recommend suspension or debarment proceedings be initiated by the Federal agency.
  5. (e)Withhold further Federal funds (new awards or continuation funding) for the project or program.
  6. (f)Pursue other legally available remedies.