Whenever the Secretary has reason to believe that any recipient of funds under any applicable program is failing to comply substantially with any requirement of law applicable to such funds, the Secretary may—
(1) withhold further payments under that program, as authorized by section 1234d of this title;
(2) issue a complaint to compel compliance through a cease and desist order of the Office, as authorized by section 1234e of this title;
(3) enter into a compliance agreement with a recipient to bring it into compliance, as authorized by section 1234f of this title; or
(4) take any other action authorized by law with respect to the recipient.
Any action, or failure to take action, by the Secretary under this section shall not preclude the Secretary from seeking a recovery of funds under section 1234a of this title.
(Pub. L. 90–247, title IV, § 454, as added Pub. L. 95–561, title XII, § 1232, Nov. 1, 1978, 92 Stat. 2349; amended Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 354.)