House and Senate Action

House

The House is not in session this week. House Republicans are spending the week in Doral, Florida, for their annual legislative retreat at Trump National Doral, where President Donald Trump is expected to address lawmakers and help shape the party’s agenda for the year ahead. The retreat will focus heavily on early discussions around a potential second budget reconciliation package. Lawmakers are also expected to discuss national security issues, including Iran, as well as legislative priorities such as the SAVE Act and broader election-related policies as House leadership works to align the conference on its legislative strategy moving forward.

Senate

The Senate is expected to continue consideration of executive branch nominations this week while also working to wrap up discussions on a bipartisan housing supply proposal as lawmakers explore options for moving the legislation forward. At the same time, negotiations are continuing behind the scenes on a path forward to reopen the Department of Homeland Security (DHS).

House Committee to Mark Up Special District Fairness and Accessibility Act

The House Oversight and Government Reform Committee is scheduled to consider the Special District Fairness and Accessibility Act (H.R. 2766) on Wednesday, March 18. 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.

House Democrats Introduce DROUGHT Act

Last week, Congressman Scott Peters, along with several other members of the California congressional delegation, introduced legislation - the Drought Relief Obtained Using Government Help Today (DROUGHT) Act, aimed at expanding federal support for local water infrastructure projects in drought-impacted communities.

Specifically, the measure would allow projects financed through the Water Infrastructure Finance and Innovation Act (WIFIA) program to receive up to 90% federal support (up from the current 80% cap) if they serve areas experiencing extreme drought, disadvantaged communities, or projects of regional significance. Supporters say the change would make it easier for local governments and water agencies to move forward with large-scale water supply and reliability projects by combining WIFIA loans with additional federal funding.

A one-page summary of the DROUGHT Act is available here.

Lawmakers Urge Federal Reforestation Strategy

A bipartisan group of Western lawmakers, led by Representative Doris Matsui (D-CA), recently urged the U.S. Department of the Interior to develop a comprehensive strategy to address a growing reforestation backlog on federally managed lands. In a letter to Interior Secretary Doug Burgum, the members highlighted that millions of acres of public lands - damaged by wildfire, drought, insects, and disease - remain in need of replanting, leaving nearby communities vulnerable to flooding, landslides, and water quality impacts. The lawmakers called on Interior to assess reforestation needs across its agencies, coordinate more closely with the U.S. Forest Service, and prioritize reforestation through the Administration’s conservation initiatives. 

President Trump to Replace DHS Secretary Kristi Noem

Last week, President Donald Trump announced that he will replace Kristi Noem as Secretary of the U.S. Department of Homeland Security, naming Markwayne Mullin (R-OK) as his choice to lead the department. Noem will instead move into a new role as a special envoy focused on Western Hemisphere security cooperation.

The leadership change follows growing frustration within the administration and among some Republican lawmakers over Noem’s management of DHS and recent congressional testimony. According to reports, senior administration officials and advisers had recently urged the White House to make a change.

If confirmed by the Senate, Mullin would take over a department that oversees several agencies, including FEMA, U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement. The leadership transition could have implications for federal disaster programs, homeland security grants, and other federal-local partnerships administered through DHS. It is unclear how the change could affect the administration’s ongoing work through the FEMA Review Council, which has been tasked with developing recommendations to reform federal disaster response and recovery programs.