Whenever the Office, after giving reasonable notice and opportunity for hearing to the State or general local government concerned, finds-
(1) that a program or project has been so changed that it no longer complies with the provisions of this chapter; or
(2) that in the operation of the program or project there is a failure to comply substantially with any such provision;
the Office shall notify the State or general local government of its findings and no further payments may be made to such government by the Office until it is satisfied that such noncompliance has been, or will promptly be, corrected. However, the Office may authorize the continuance of payments to those projects approved under this chapter which are not involved in the noncompliance.
(
This chapter, referred to in text, means the provisions of subchapters I, II, III, and IV of this chapter. See section 4761 of this title.
"Office", meaning Office of Personnel Management, substituted in text for "Commission", meaning Civil Service Commission, pursuant to Reorg. Plan No. 2 of 1978, §102, 43 F.R. 36037,