45 CFR § 261.54 - Is a State subject to any other penalty relating to its work program?

---
identifier: "/us/cfr/t45/s261.54"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 261.54 - Is a State subject to any other penalty relating to its work program?"
title_number: 45
title_name: "Public Welfare"
section_number: "261.54"
section_name: "Is a State subject to any other penalty relating to its work program?"
chapter_name: "OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
part_number: "261"
part_name: "ENSURING THAT RECIPIENTS WORK"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 601, 602, 607, and 609; Pub. L. 109-171."
regulatory_source: "64 FR 17884, Apr. 12, 1999, unless otherwise noted."
cfr_part: "261"
---


# 261.54 Is a State subject to any other penalty relating to its work program?

(a) If we determine that, during a fiscal year, a State has violated section 407(e) of the Act, relating to imposing penalties against individuals, we must reduce the SFAG payable to the State.

(b) The penalty amount for a fiscal year will equal between one and five percent of the adjusted SFAG.

(c) We impose a penalty by reducing the SFAG payable for the fiscal year that immediately follows our final determination that a State is subject to a penalty and our final determination of the penalty amount.