Section 18.549 - Alternate funds disbursal procedure(a) When VA withholds funds from a recipient under these regulations, the Secretary may disburse the withheld funds directly to an alternate recipient: Any public or non-profit private organization or agency, or State or political subdivision of the State.(b) The Secretary will require any alternate recipient to demonstrate; (1) The ability to comply with these regulations; and(2) The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.50 FR 34133, Aug. 23, 1985, as amended at 68 FR 51372 , Aug. 26, 2003 Authority: 42 U.S.C. 6101 - 1607