45 CFR § 263.8 - What happens if a State fails to meet the basic MOE requirement?

---
identifier: "/us/cfr/t45/s263.8"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 263.8 - What happens if a State fails to meet the basic MOE requirement?"
title_number: 45
title_name: "Public Welfare"
section_number: "263.8"
section_name: "What happens if a State fails to meet the basic MOE requirement?"
chapter_name: "OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
part_number: "263"
part_name: "EXPENDITURES OF STATE AND FEDERAL TANF FUNDS"
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. 604, 607, 609, and 862a; Pub. L. 109-171."
regulatory_source: "64 FR 17893, Apr. 12, 1999, unless otherwise noted."
cfr_part: "263"
---


# 263.8 What happens if a State fails to meet the basic MOE requirement?

(a) If any State fails to meet its basic MOE requirement for any fiscal year, then we will reduce dollar-for-dollar the amount of the SFAG payable to the State for the following fiscal year.

(b) If a State fails to meet its basic MOE requirement for any fiscal year, and the State received a WtW formula grant under section 403(a)(5)(A) of the Act for the same fiscal year, we will also reduce the amount of the SFAG payable to the State for the following fiscal year by the amount of the WtW formula grant paid to the State.