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Bill would formalize a federal statutory definition of special district.

Last week, Representatives Pat Fallon (R-TX) and Brittany Pettersen (D-CO) introduced legislation (H.R. 2766) that would establish a first-ever formal definition of “special district” in federal law. The bipartisan bill – which is NSDA's number one federal legislative priority – also would direct the White House Office of Management and Budget (OMB) to issue guidance to federal agencies requiring special districts to be recognized as local governments for purposes of ensuring that districts have access to all appropriate forms of federal financial assistance. 

It should be noted that H.R. 2766 is identical to legislation that was overwhelmingly approved by the full House of Representatives last year, with the exception of the title. This year’s bill is known as the Special District Fairness and Accessibility Act.

Pursuant to H.R. 2766, federal agencies would have one year to implement OMB’s guidance and to conform any agency policy, principle, practice, procedure, or guideline relating to the administration of federal financial assistance programs. Implementation of the bill’s requirements would result in special districts being formally recognized as units of local government across the federal bureaucracy, thus ensuring that special districts are adequately included in federal-state-local planning processes and have access to all relevant funding streams and grant programs.

The Fallon-Pettersen bill has been referred to the House Oversight and Government Reform Committee. It is unclear when the legislation will be considered by the committee. In the upper chamber, Senators John Cornyn (R-TX) and Jeff Merkley (D-OR) are expected to introduce a companion version of the Special District Fairness and Accessibility Act in the near future.