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‘‘(1) ELIGIBILITY.—No individual who is an
alien shall be eligible to receive benefits under a
State plan approved under subsection (e)(4) if the
individual is not eligible to participate in the food
stamp program due to the alien status of the indi-
vidual.
‘‘(2) INCOME.—The State plan shall provide
that the income of an alien shall be determined in
accordance with section 5(i).
‘‘(h) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK REQUIREMENTS.—No individual or
household shall be eligible to receive benefits under
a State plan funded under this section if the individ-
ual or household is not eligible to participate in the
food stamp program under subsection (d) or (o) of
section 6.
‘‘(2) WORK PROGRAMS.—Each State shall im-
plement an employment and training program in ac-
cordance with the terms and conditions of section
6(d)(4) for individuals under the program and shall
be eligible to receive funding under section 16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor
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State compliance with this section and the State
plan approved under subsection (e)(4).
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If the Secretary, after
reasonable notice to a State and opportunity for
a hearing, finds that—
‘‘(i) there has been a failure by the
State to comply substantially with any pro-
vision or requirement set forth in the State
plan approved under subsection (e)(4); or
‘‘(ii) in the operation of any program
or activity for which assistance is provided
under this section, there is a failure by the
State to comply substantially with any pro-
vision of this section;
the Secretary shall notify the State of the find-
ing and that no further grants will be made to
the State under this section (or, in the case of
noncompliance in the operation of a program or
activity, that no further grants to the State will
be made with respect to the program or activ-
ity) until the Secretary is satisfied that there is
no longer any failure to comply or that the non-
compliance will be promptly corrected.
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‘‘(B) OTHER PENALTIES.—In the case of a
finding of noncompliance made pursuant to
subparagraph (A), the Secretary may, in addi-
tion to, or in lieu of, imposing the penalties de-
scribed in subparagraph (A), impose other ap-
propriate penalties, including recoupment of
money improperly expended for purposes pro-
hibited or not authorized by this section and
disqualification from the receipt of financial as-
sistance under this section.
‘‘(C) NOTICE.—The notice required under
subparagraph (A) shall include a specific identi-
fication of any additional penalty being imposed
under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
‘‘(A) receiving, processing, and determin-
ing the validity of complaints made to the Sec-
retary concerning any failure of a State to com-
ply with the State plan or any requirement of
this section; and
‘‘(B) imposing penalties under this section.
‘‘(j) GRANT.—
‘‘(1) IN GENERAL.—For each fiscal year, the
Secretary shall pay to a State that has an applica-
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tion approved by the Secretary under subsection
(e)(4) an amount that is equal to the grant of the
State under subsection (m) for the fiscal year.
‘‘(2) METHOD OF GRANT.—The Secretary shall
make a grant to a State for a fiscal year under this
section by issuing 1 or more letters of credit for the
fiscal year, with necessary adjustments on account
of overpayments or underpayments, as determined
by the Secretary.
‘‘(3) SPENDING OF GRANTS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a grant to a State deter-
mined under subsection (m)(1) for a fiscal year
may be expended by the State only in the fiscal
year.
‘‘(B) CARRYOVER.—The State may reserve
up to 10 percent of a grant determined under
subsection (m)(1) for a fiscal year to provide
assistance under this section in subsequent fis-
cal years, except that the reserved funds may
not exceed 30 percent of the total grant re-
ceived under this section for a fiscal year.
‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, not more than
6 percent of the Federal and State funds required
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to be expended by a State under this section shall
be used for administrative expenses.
‘‘(5) PROVISION
OF
FOOD
ASSISTANCE.—A
State may provide food assistance under this section
in any manner determined appropriate by the State,
such as electronic benefit transfer limited to food
purchases, coupons limited to food purchases, or di-
rect provision of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating
in the program established under this section shall main-
tain a system in accordance with, and shall be subject to
section 16(c), including sanctions and eligibility for incen-
tive payment under section 16(c), adjusted for State spe-
cific characteristics under regulations issued by the Sec-
retary.
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN
GENERAL.—The Secretary shall not
provide financial assistance for any program,
project, or activity under this section if any person
with responsibilities for the operation of the pro-
gram, project, or activity discriminates with respect
to the program, project, or activity because of race,
religion, color, national origin, sex, or disability.
‘‘(2) ENFORCEMENT.—The powers, remedies,
and procedures set forth in title VI of the Civil