Federal bill would force agencies to recognize special districts as local governments
In markupH.R. 2766Latest action
Sponsor: Pat Fallon · Representative · TX
AIDecoded by AI · checked against the recordRead the official text
Official title: Special District Fairness and Accessibility Act
119th Congress
Topics: Government & democracy
Introduced:
Read the official bill on Congress.govIn plain words
The plain-language version comes first. The official text is always the reference.
HR 2766 directs OMB to require federal agencies to treat special districts as local governments eligible for federal funding.
55-second read · 5 questions answered below
What does this do?
HR 2766 requires the Office of Management and Budget (OMB) to issue guidance clarifying that special districts qualify as local governments for federal funding purposes. OMB would have 180 days to issue that guidance, and federal agencies would then have one year to update their own rules accordingly. Two years after enactment, OMB must report to Congress on agency compliance.
Who does it affect?
The bill directly affects the thousands of special districts operating across the country, including water, fire, hospital, and transit districts. The communities those districts serve are also indirectly affected by whether these entities can access federal funding.
Why does it matter?
Some federal agencies currently do not consistently recognize special districts as local governments, which can block them from applying for grants and other federal funds. When special districts are shut out of federal funding, local residents may face higher taxes or fees to cover costs that federal grants might otherwise help offset.
What does it cost, and who pays?
The summary does not specify a dollar amount, but notes that local residents may pay more through taxes or fees if special districts cannot access federal grants.
AI-drafted summary. Check it against the official text before you act on it.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedApr 9, 2025
- House committeeYou are here · Mar 18, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Ordered to be Reported (Amended) by the Yeas and Nays: 32 - 8.