March 2026 - H.R.2766 Special District Fairness and Accessibility Act set for Markup - Statement by Ann Terry, NSDA Chair
NSDA is excited to announce the House Oversight and Government Reform Committee is scheduled to consider the Special District Fairness and Accessibility Act (H.R. 2766) on March 18, 2026 estimated 10:00 am EST. The bipartisan legislation, led by Pat Fallon (R-TX) and Brittany Pettersen (D-CO), would establish the first formal definition of “special district” in federal law.
The bill, which is NSDA's top federal legislative priority, would also direct the White House Office of Management and Budget (OMB) to issue guidance to federal agencies clarifying that special districts should 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 in 2024, with the exception of the title.
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 National Special Districts Association (NSDA) is grateful to early co-sponsors for their leadership on behalf of the nation’s special districts,” said Ann Terry, Chair of NSDA and Chief Executive Officer of the Special District Association of Colorado. “Special districts provide essential public services to millions of Americans, including fire protection and emergency services, clean water, public transit, hospital, parks and recreation, airport, natural resource conservation, and many more. The bipartisan Special District Fairness and Accessibility Act would establish a formal definition of 'special district' in federal law and ensure that the nearly 40,000 special districts nationwide are eligible to receive all appropriate forms of federal financial assistance. NSDA looks forward to continuing working with Congress as well as our special district partners across the nation, to ensure that this critically important piece of legislation is enacted into law.”
H.R.2766 - 119th Congress (2025-2026): Congress.gov | Library of Congress