Retention of recaptured funds by States

Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended— (1) in the second sentence, by striking The officials and inserting the following: (3) Prohibition The officials; (2) in the first sentence— (A) by redesignating paragraphs (1) through (9) as subparagraphs (A) through (I), respectively; and (B) by striking section 17(n): Provided, That the Secretary and inserting the following: “section 17(n). (2) Administration on Indian reservations and in Native villages (A) In general The Secretary; (3) in paragraph (2) (as so designated)— (A) in subparagraph (A), by striking 35 percent and inserting 50 percent; and (B) by adding at the end the following: (B) Use of retained amounts for fraud investigations The value of funds or allotments recovered or collected pursuant to sections 6(b) and 13(c) that are retained by a State under subparagraph (A) in excess of 35 percent shall be used by the State for investigations of fraud in the supplemental nutrition assistance program.; and (4) by striking the subsection designation and all that follows through Subject to in the matter preceding paragraph (2) (as so designated) and inserting the following: (a) Administrative cost-Sharing (1) In general Subject to.