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49 CFR § 384.401 - Withholding of funds based on noncompliance.

---
identifier: "/us/cfr/t49/s384.401"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "49 CFR § 384.401 - Withholding of funds based on noncompliance."
title_number: 49
title_name: "Transportation"
section_number: "384.401"
section_name: "Withholding of funds based on noncompliance."
chapter_name: "FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
subchapter_number: "B"
subchapter_name: "FEDERAL MOTOR CARRIER SAFETY REGULATIONS"
part_number: "384"
part_name: "STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "49 U.S.C. 31136, 31301,  and 31502; secs. 103 and 215 of Pub. L. 106-159, 113 Stat. 1748, 1753, 1767; sec. 32934 of Pub. L. 112-141, 126 Stat. 405, 830; sec. 5524 of Pub. L. 114-94, 129 Stat. 1312, 1560; and 49 CFR 1.87."
regulatory_source: "59 FR 26039, May 18, 1994, unless otherwise noted."
cfr_part: "384"
---

# 384.401 Withholding of funds based on noncompliance.

(a) *Following the first year of noncompliance.* An amount up to 4 percent of the Federal-aid highway funds required to be apportioned to any State under 23 U.S.C. 104(b)(1) and (2) shall be withheld from a State on the first day of the fiscal year following such State's first year of noncompliance under this part.

(b) *Following second and subsequent year(s) of noncompliance.* An amount up to 8 percent of the Federal-aid highway funds required to be apportioned to any State under 23 U.S.C. 104(b)(1) and (2) shall be withheld from a State on the first day of the fiscal year following such State's second or subsequent year(s) of noncompliance under this part.

[86 FR 35642, July 7, 2021]