45 CFR § 264.31 - What happens if a State does not comply with the IV-D sanction requirement?

---
identifier: "/us/cfr/t45/s264.31"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 264.31 - What happens if a State does not comply with the IV-D sanction requirement?"
title_number: 45
title_name: "Public Welfare"
section_number: "264.31"
section_name: "What happens if a State does not comply with the IV-D sanction requirement?"
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"
---


# 264.31 What happens if a State does not comply with the IV-D sanction requirement?

(a)(1) If we find that, for a fiscal year, the State IV-A agency did not enforce the penalties against recipients required under § 264.30(c), we will reduce the SFAG payable for the next fiscal year by one percent of the adjusted SFAG.

(2) Upon a finding for a second fiscal year, we will reduce the SFAG by two percent of the adjusted SFAG for the following year.

(3) A third or subsequent finding will result in the maximum penalty of five percent.

(b) We will not impose a penalty if:

(1) The State demonstrates to our satisfaction that it had reasonable cause pursuant to § 262.5 of this chapter; or

(2) The State achieves compliance under a corrective compliance plan pursuant to § 262.6 of this chapter.