41 CFR § 101-8.725
Alternate funds disbursal
June 9, 2020
If GSA withholds Federal financial assistance from a recipient under this regulation, the Administrator may disburse the assistance to an alternate recipient; any public or nonprofit private organization; or agency or State or political subdivision of the State. The Administrator requires any alternate recipient to demonstrate:
(a) The ability to comply with this regulation; and
(b) The ability to achieve the goals of the Federal Statutes authorizing the Federal financial assistance.