NAEFO-supported legislation to define “special district” in federal law and reduce barriers to access federally-funded resources for local government infrastructure is near the finish line – and America’s special districts are called to act in support of H.R. 7525 (Fallon) / S. 4673 ("Sinema-Cornyn"), the Special District Grant Accessibility Act.

The post-election, Lame Duck session is shaping up to be a complicated but packed period of time, as Congress must weigh next steps on Fiscal Year 2025 appropriations, Farm Bill reauthorization, the 2024 Water Resources Development Act, the National Defense Reauthorization Act, and more.

Now, as the 118th Congress moves toward a close - all special districts are encouraged to act in support of the Special District Grant Accessibility Act. If the bill does not pass prior to the adjournment of this Congress, then it will die and efforts must begin anew in 2025.

Click here to get started and receive resources for your advocacy.

The Special District Grant Accessibility Act offers a simple bipartisan solution to a complex problem that would not authorize any new federal funding, would not alter any existing funding structures, and does not impact states’ rights to authorize special district structures. It is a three-page (click here to read) bill that would, for the first-time, establish in U.S. Code a standard definition of “special district” to foster consistency in reference and to better recognize special districts as eligible for federal programs intended for local governments.

Click here for a one-pager on the Special District Grant Accessibility Act.

Simply put, this bill will guarantee federal agencies’ recognition of special districts as local governments providing critical infrastructure and essential community services, and better safeguard districts from getting “washed out” of programs as federal programs are administered through states and to the local level. Further, the codified definition would serve as the cornerstone to resolve other issues impacting special districts, such as the current inability for federal agencies to certify Census/population/household statistics.

The bill earned House of Representatives approval, 352-27, on May 6. A bipartisan companion bill for the Special District Grant Accessibility Act – S. 4673 (Sinema) – was introduced in June, setting the stage for further action. In the time since, H.R. 7525 was favorably reported, 10-1, out of the Senate Homeland Security and Governmental Affairs Committee on July 31.

The Special District Grant Accessibility Act is set for final Senate passage, and all special districts are encouraged to support his landmark legislation for America's special districts and to communicate that support to their senators.

Advocate!

Receive a template letter of support along with the proper contacts to send your letter:

Please register your district’s support using this link.

Implementing the Special District Definition Policy

H.R. 7525 and S. 4673 define the term “special district” as:

Special District – “a political subdivision of a State, with specified boundaries and significant budgetary autonomy or control, created by or pursuant to the laws of the State, for the purpose of performing limited and specific governmental or proprietary functions that distinguish it as a significantly separate entity from the administrative governance structure of any other form of local government unit within a State.”

The Office of Management and Budget (OMB) would be required within six months of the bill’s enactment to direct all federal agencies to adopt the definition for program guidance. The action would underscore special districts’ status as unit of local government. OMB would report back to Congress within two years on the policy’s implementation.

For questions and support for your advocacy, please contact Cole Arreola-Karr, NAEFO Executive Director, at cole@naefo.org.