Penalty for failure to comply with administrative limitation

Section 409(a) of the Social Security Act (42 U.S.C. 409(a)) is amended by adding at the end the following: (17) Penalty for failure to comply with administrative limitation If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 404(b) for the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 5 percent of the State family assistance grant..