45 CFR § 264.2 - What happens if a State does not comply with the five-year limit?

---
identifier: "/us/cfr/t45/s264.2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 264.2 - What happens if a State does not comply with the five-year limit?"
title_number: 45
title_name: "Public Welfare"
section_number: "264.2"
section_name: "What happens if a State does not comply with the five-year limit?"
chapter_name: "OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
part_number: "264"
part_name: "OTHER ACCOUNTABILITY PROVISIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "31 U.S.C. 7501  42 U.S.C. 608, 609, 654, 1302, 1308, and 1337."
regulatory_source: "64 FR 17896, Apr. 12, 1999, unless otherwise noted."
cfr_part: "264"
---


# 264.2 What happens if a State does not comply with the five-year limit?

If we determine that a State has not complied with the requirements of § 264.1, we will reduce the SFAG payable to the State for the immediately succeeding fiscal year by five percent of the adjusted SFAG unless the State demonstrates to our satisfaction that it had reasonable cause, or it corrects or discontinues the violation under an approved corrective compliance plan.