; and (iv) withhold, suspend, or terminate contracts, cooperative agreements, grants, or other financial assistance when a provider of adoption or foster care placement or related services takes any action permitted under this title. (3) Authority to withhold funds If a State fails to participate in the indirect funding program, develop an appropriate State plan, or to comply with this section in any other respect, the Secretary shall, after appropriate notice and failure to comply, withhold payment to the State of amounts otherwise payable under part B or E of title IV of the Social Security Act ( 42 U.S.C. 621 et seq., 670 et seq.), to the extent that the Secretary deems the withholding necessary to induce compliance. A State may elect not to comply with its duties under this section on condition that it declines Federal financial assistance for adoption and foster care. (d) Private recipients of Federal financial assistance (1) Protection for diverse providers A private organization that is eligible to receive Federal financial assistance through the certificate program prescribed by subsection (c)(1) for providing any adoption or foster care placement or related services may— (A) decline to accept a certificate without being obligated to perform a particular service, despite receiving certificates to perform other covered adoption or foster care services, so long as the provider gives a referral to the certificate holder consistent with section (c)(2)(A)(vi)(II)–(IV)