Special District Fairness and Accessibility Act

H.R. 2766 would create the first-ever federal definition of special districts in U.S. law. Special districts are local government entities that provide essential services like fire protection, water, wastewater, libraries, flood control, and emergency services across the country. Currently, federal law does not clearly recognize these districts, which prevents them from accessing federal funding and programs that are available to cities, counties, and other local governments. This bill would require the Office of Management and Budget to issue guidance ensuring special districts are recognized as local governments for federal financial assistance purposes.

If enacted, the bill would place special districts on equal footing with other local governments when applying for federal grants and assistance programs. The legislation does not authorize new federal spending or create new special districts, but rather removes barriers that currently prevent existing special districts from accessing federal programs Congress has already authorized. The bill has received strong bipartisan support, having passed the House Oversight and Government Reform Committee with a 32-8 vote and is now eligible for a full House floor vote.