**§18.546 Compliance procedure.**

\(a\) VA may enforce the Act and these regulations through:

\(1\) Termination of Federal financial assistance from VA with respect
to a recipient's program or activity that has violated the Act or these
regulations. The determination of the recipient's violation may be made
only after a recipient has had an opportunity for a hearing on the
record before an administrative law judge. Therefore, cases which are
settled in mediation, or prior to a hearing, will not involve
termination of a recipient's Federal financial assistance from VA.

\(2\) Any other means authorized by law including but not limited to:

\(i\) Referral to the Department of Justice for proceedings to enforce
any rights of the United States or obligations of the recipient created
by the Act or these regulations.

\(ii\) Use of any requirement of or referral to any Federal, State, or
local government agency that will have the effect of correcting a
violation of the Act or these regulations.

\(b\) VA will limit any termination under paragraph (a)(1) of this
section to the particular program or activity or part of such program or
activity of a recipient that VA finds to be in violation of the Act or
these regulations. VA will not base any part of a termination on a
finding with respect to any program or activity of the recipient which
does not receive Federal financial assistance from VA.

\(c\) VA will take no action under paragraph (a) of this section until:

\(1\) The Secretary has advised the recipient of its failure to comply
with the Act and these regulations and has determined that voluntary
compliance cannot be obtained.

\(2\) Thirty days have elapsed after the Secretary has sent a written
report of the circumstances and grounds of the action to the committees
of the Congress having legislative jurisdiction over the program or
activity involved. The Secretary will file a report whenever any action
is taken under paragraph (a) of this section.

\(d\) VA also may defer granting new Federal financial assistance from
VA to a recipient when a hearing under paragraph (a)(1) of this section
is initiated.

\(1\) New Federal financial assistance from VA includes all assistance
for which VA requires an application or approval, including renewal or
continuation of existing activities, or authorization of new activities
during the deferral period. New Federal financial assistance from VA
does not include increases in funding resulting solely from a change in
the formula or method of computing awards, nor does it include
assistance approved prior to the beginning of a hearing under paragraph
(a)(1) of this section.

\(2\) VA will not begin a deferral until the recipient has received a
notice of an opportunity for a hearing under paragraph (a)(1) of this
section. VA will not continue a deferral for more than 60 days unless a
hearing has begun within that time or the time for beginning the hearing
has been extended by mutual consent of the recipient and the Secretary.
VA will not continue a deferral for more than 30 days after the close of
the hearing, unless the hearing results in a finding against the
recipient. (Authority: 42 U.S.C. 6101--6107)

\[45 FR 63268, Sept. 24, 1980, as amended at 68 FR 51372, Aug. 26,
2003\]

**Supplement *Highlights* reference**: 58(1)