Subpart D: Post-award requirements 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.339: Remedies for noncompliance

2 CFR 200.339 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies while you manage a federal award.

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What 2 CFR 200.339 requires

1. General

What you must do

Failure to comply with the U.S. Constitution, federal statutes, regulations, or award terms exposes the recipient/subrecipient to escalating remedies: § 200.208 specific conditions first; then temporary payment withholding, cost disallowance, suspension or termination of the award, suspension/debarment proceedings under 2 CFR part 180 (or PTE referral for them), withholding of further federal funds (new awards or continuation funding), and other legally available remedies.

When it applies

Recipient or subrecipient fails to comply with the U.S. Constitution, federal statutes, regulations, or the terms and conditions of the Federal award

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Sections that refer to 2 CFR 200.339

Regulation text of 2 CFR 200.339

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The Federal agency or pass-through entity may implement specific conditions if the recipient or subrecipient fails to comply with the U.S. Constitution, Federal statutes, regulations, or terms and conditions of the Federal award. See § 200.208 for additional information on specific conditions. When the Federal agency or pass-through entity determines that noncompliance cannot be remedied by imposing specific conditions, the Federal agency or pass-through entity may take one or more of the following actions:

(a) Temporarily withhold payments until the recipient or subrecipient takes corrective action.

(b) Disallow costs for all or part of the activity associated with the noncompliance of the recipient or subrecipient.

(c) Suspend or terminate the Federal award in part or in its entirety.

(d) Initiate suspension or debarment proceedings as authorized in 2 CFR part 180 and the Federal agency's regulations, or for pass-through entities, recommend suspension or debarment proceedings be initiated by the Federal agency.

(e) Withhold further Federal funds (new awards or continuation funding) for the project or program.

(f) Pursue other legally available remedies.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.339

What does 2 CFR 200.339 require?

Failure to comply with the U.S. Constitution, federal statutes, regulations, or award terms exposes the recipient/subrecipient to escalating remedies: § 200.208 specific conditions first; then temporary payment withholding, cost disallowance, suspension or termination of the award, suspension/debarment proceedings under 2 CFR part 180 (or PTE referral for them), withholding of further federal funds (new awards or continuation funding), and other legally available remedies.

When does 2 CFR 200.339 apply?

Recipient or subrecipient fails to comply with the U.S. Constitution, federal statutes, regulations, or the terms and conditions of the Federal award.

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.