28 C.F.R. § 18.5 – Hearings.

(a) Whenever the responsible agency official finds that there has been a substantial failure to comply with:
1. (1) The provisions of the Crime Control Act, the Juvenile Justice Act, or the Victims of Crime Act;
2. (2) Regulations promulgated by the responsible agency pursuant to appropriate statutory authority; or
3. (3) A plan or application submitted in accordance with the provisions of the Crime Control Act; the Juvenile Justice Act, the Victims of Crime Act, or the provisions of any other applicable Federal act, regulation or guideline;
  the responsible agency shall notify the grantee or applicant State that all or part of its grant or subgrant will be terminated or suspended until the responsible agency is satisfied that there is no longer such failure.
(b) The notice shall contain:
1. (1) A statement of facts sufficient to inform the party of the reasons for the agency's proposed action;
2. (2) A statement of the nature of the action proposed to be taken; and
3. (3) A reference of the available appeal rights.
(c) If a block or formula grant applicant or recipient or a categorical grant recipient wishes to appeal any action covered by § 18.5(a) it may request a review of the issues in controversy within 30 days after notice of termination, noncompliance or denial by writing to:
Office of General Counsel, office of Justice Programs, U.S. Department of Justice, 633 Indiana Avenue NW., Room 1268, Washington, DC 20531.
(d) The request for a review shall contain:
1. (1) A factual statement sufficient to inform the responsible agency of the nature of the issues involved;
2. (2) A recital of the relief requested; and
3. (3) A request for an oral hearing, or in the alternative, an opportunity to submit only written information or argument to a hearing officer.
(e) If the responsible agency official determines that basis for the appeal in § 18.5(c) would not, if substantiated, establish a basis for grant award or continuation, the official may take final agency action on the appeal.
(f) The responsible agency or its representative may attempt to informally resolve a controversy arising under this section prior to initiating a hearing. Unless it is expressly agreed otherwise, an agreement to attempt informal resolution does not waive the right to the formal hearing.
(g) If the responsible agency or its representaive does not receive a request for a review within 30 days after notice has been sent, the opportunity for review is waived.
(h) All oral hearings requested under this section shall be held in Washington, DC, unless the hearing officer decides that the hearing could be conducted in a more expeditious, fair, or cost effective manner in another location.
(i) The responsible agency may suspend all or part of the grantee's funding pending the completion of the review process. If, at the conclusion of the review process, the responsible agency determines that the grantee is in compliance, it shall restore all previously suspended funding to the grantee.
(j) Any person may request the responsible agency official to determine whether a grantee has failed to comply with the terms of the statute under which the grant was awarded, agency regulations or the terms and conditions of the grant. The responsible agency may, in its discretion, conduct an investigation into the matter and, if warranted, make a determination of noncompliance. Only a grantee determined to be in noncompliance may request a compliance hearing.