(A) In general Except in the case of exceptional circumstances, as determined by the Administrator, or as described in subparagraph (B), to receive a full allotment under subsection (f) a State apprenticeship agency shall use matching funds from non-Federal resources to carry out the activities of the agency under this Act in an amount not less than 25 percent of such allotment. (B) Transition period The requirement under subparagraph (A) shall take effect with respect to a State apprenticeship agency described in clause (i) of subsection (a)(3)(C) on the date that is 1 day after the date on which the 4-year period described in clause (ii) of such subsection ends with respect to such a State apprenticeship. (e) Derecognition of State Apprenticeship Agencies (1) In general The Secretary may withdraw recognition of a State apprenticeship agency before the end of the 4-year recognition period of the State apprenticeship agency under subsection (a)(3)(B) if the Secretary determines, after notice and an opportunity for a hearing, that the State apprenticeship agency has failed for one of the reasons described in paragraph (2) and has not been in compliance with the performance improvement plan under paragraph (3)(A) to remedy such failure. (2) Derecognition criteria The recognition of a State apprenticeship agency under subsection (a) may be withdrawn under paragraph (1) in a case in which the State apprenticeship agency fails to— (A) adopt or properly enforce a State plan