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July 3, 2026 - Going into July 4th Weekend, NSDA Reflects on the Importance of Special Districts and Intergovernmental Partnerships

As Americans celebrate Independence Day, we are reminded that the strength of our nation has always rested in the thousands of local governments that serve our communities every day. Nearly two centuries ago, French political philosopher Alexis de Tocqueville observed that "Local institutions are to liberty what primary schools are to science; they bring it within the people's reach." His insight remains as relevant today as when he wrote Democracy in America—our democracy is strongest when decisions are made close to the people they affect.

In fact, did you know in 1736, Benjamin Franklin helped organize Philadelphia's Union Fire Company — one of America's earliest community-based public service organizations. It was established decades before nearly every municipal government in colonial America, reflecting a long tradition of neighbors coming together to serve their communities.

That principle is embodied by America's almost 40,000 special districts. Governed by locally elected or appointed officials, these independent units of local government provide essential public services ranging from fire protection, water, ports, airports, parks, libraries, healthcare, conservation, transit, and more. While these services are delivered locally, many of the policies that shape their future are developed in Washington, D.C.

That is why the National Special Districts Association (NSDA) remains actively engaged on Capitol Hill as critical intergovernmental partners,  and with federal agencies—ensuring that the voices of special districts are heard as Congress and the Administration consider legislation and regulations affecting communities across the country.  From regulatory reform and federal funding to wildfire resilience and recognition of special districts in federal law, NSDA continues to advocate for practical, locally driven solutions that strengthen the essential services special districts provide across America.

See here for what's been happening this past month, and consider joining this National Movement today:

Protecting Federal Funding for Local Governments

NSDA is currently reviewing the Office of Management and Budget's (OMB) proposed revisions to the Uniform Guidance governing nearly $1 trillion in federal grants. After gathering feedback from members nationwide, several significant concerns have emerged, including provisions that could allow grants to be terminated at any time, increase political involvement in grant decisions, create new administrative bottlenecks, and potentially affect municipal bond ratings and project delivery.

NSDA has submitted comments on the proposal and continues to work with national local government organizations seeking additional time for public review. Members are encouraged to continue sharing concerns and submitting comments as the rulemaking process moves forward.

Improving Digital Accessibility Requirements

NSDA also provided recommendations to the U.S. Small Business Administration's Office of Advocacy regarding implementation of the Department of Justice's web accessibility requirements under the Americans with Disabilities Act. Our recommendations focused on practical compliance solutions for local governments, including reasonable remediation periods, flexibility for accessible document formats, common-sense approaches to captioning and social media accessibility, and protections for archived public records.

Supporting Fire Protection Districts

As fire districts across the country continue facing unprecedented increases in the cost of fire apparatus, NSDA has been working with national fire service organizations to elevate the issue before Congress and federal agencies. Rising equipment costs are straining local budgets and reducing purchasing power under existing federal grant programs. NSDA supports efforts to increase Assistance to Firefighters Grant funding and encourages districts experiencing significant price increases or delivery delays to share their experiences to strengthen the case for federal action.

Advancing Wildfire Resilience

NSDA applauds the introduction of the bipartisan FIRE SMART Act, legislation that would allow greater flexibility within the Drinking Water State Revolving Fund to support projects that improve both drinking water infrastructure and wildfire suppression capabilities in high-risk rural communities. The legislation recognizes the important role many special districts play in delivering both safe drinking water and fire protection and represents a practical investment in community resilience.

Building Bipartisan Support for Federal Recognition of Special Districts

Momentum also continues to grow for the Special District Fairness and Accessibility Act (H.R. 2766/S. 2014), with bipartisan congressional support now reaching 28 cosponsors. This landmark legislation would, for the first time, establish a federal definition for special districts, ensuring they are consistently recognized throughout federal law and have a seat at the table as federal policies and programs are developed.

Federal advocacy remains one of NSDA's highest priorities. Whether protecting access to federal funding, improving regulatory implementation, advancing wildfire preparedness, or securing long-overdue recognition of special districts in federal law, NSDA continues working every day to ensure the interests of special districts are represented in Washington. We will continue providing members with timely updates and opportunities to engage as these important federal initiatives move forward.