Please find the detailed talking points linked below. We encourage you to review them carefully and use them to engage with stakeholders and your communities.

Talking Points:

Talking Points H.R.2766.docxTalking Points S.2014.docx

Defining Special Districts in Federal Law 

August 2026

Background and Context

NSDA is currently working with our congressional partners on legislative efforts designed to establish a first-ever, formal definition of “special district” in the U.S. Code. 

To date the Bill has 30 early CoSponsors and we are seeking additional support.

NSDA’s Legislative Objectives:

This legislation aims to:

1. Establish a first-ever, formal definition of “special district” in federal law
2. Direct OMB to issue guidance to federal agencies requiring special districts to be recognized as local governments for the purpose of federal financial assistance determinations. Federal agencies would have one year to implement OMB’s guidance.

A formal definition of “special district” would foster consistency and enhance special districts’ access to a number of federal programs. Moreover, having a formal definition of special district codified in law would help facilitate the inclusion of special districts in future legislative proposals on Capitol Hill.