42 CFR § 433.120
Procedures for reduction of FFP after reapproval review
June 11, 2020
(a) If CMS determines after the reapproval review that the system no longer meets the conditions for reapproval in §433.119, CMS may reduce FFP for certain expenditures for system operations.
(b) CMS may reduce FFP from 75 percent to 50 percent for expenditures related to the operations of non-compliant functionality or system components.
[80 FR 75843, Dec. 4, 2015]