(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.

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(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]