(a) If you fail to comply with any requirement of this part, you may be subject to formal enforcement action under § 26.103 or § 26.105 or appropriate program sanctions by the concerned operating administration, such as the suspension or termination of Federal funds, or refusal to approve projects, grants or contracts until deficiencies are remedied. Program sanctions may include, in the case of the FHWA program, actions provided for under 23 CFR 1.36; in the case of the FAA program, actions consistent with 49 U.S.C. 47106(d), 47111(d), and 47122; and in the case of the FTA program, any actions permitted under 49 U.S.C. chapter 53 or applicable FTA program requirements.
(b) As provided in statute, you will not be subject to compliance actions or sanctions for failing to carry out any requirement of this part because you have been prevented from complying because a Federal court has issued a final order in which the court found that the requirement is unconstitutional.
Notes of Decisions
Kousisis v. United States, 605 U.S. 114 (2025).
“, at 305 (“If [a grant recipient] fail[s] to comply with any requirement mentioned in this rule,” including the DBE re- quirement, “they could be subject to formal enforcement ac- tion or program sanctions such as suspension or termina- tion of federal funds or refusal to…”
C.S. McCrossan Constr., Inc. v. Minnesota Dep't of Transp., 946 F. Supp. 2d 851 (D. Minnesota 2013).
“103 , and if a violation is found, the recipient "may be subject to formal enforcement action by the [Administration]," 49 C.F.R. § 26.101 (emphasis added). These provisions strongly suggest that no private cause of action exists for violations of Part 26.”
Interstate Traffic Control v. Beverage, 101 F. Supp. 2d 445 (S.D.W. Va 2000).
“49 C.F.R. § 26.101 (b). 9 . "Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities.”
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