H.R.2766 Passes House Committee: Special District Fairness and Accessibility Act Advances 32-8

The House of Representatives' Committee on Oversight and Government Reform passed the Special District Fairness and Accessibility Act of 2026 (H.R.2766) on March 18, 2026, with a bipartisan vote of 32-8. This marks a significant milestone in the effort to formally recognize special districts in federal law.

What the Bill Does

H.R.2766 would require the Director of the Office of Management and Budget to issue guidance to federal agencies requiring special districts to be recognized as units of local government for the purpose of federal financial assistance determinations.

Key provisions include:

• OMB Guidance: Within 180 days of enactment, OMB must issue guidance clarifying how agencies recognize special districts as local government for federal financial assistance eligibility.
• Agency Implementation: Within one year of guidance issuance, all agencies must implement the requirements and conform their policies, procedures, and guidelines.
• Reporting Requirement: Within two years, OMB must submit a report to Congress evaluating agency implementation.

The Federal Definition

The bill defines "special district" as:

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.

This definition would apply across all federal programs, ending the inconsistent treatment special districts currently face when seeking federal resources.

Why This Matters

Federal law currently lacks a clear definition of "special district," creating unnecessary barriers to federal resources, emergency funding, and essential grants. Special districts provide critical public services — water, fire protection, healthcare, public transportation, and more — yet they are often overlooked in federal policy discussions.

Since 2020, the National Special Districts Association (NSDA) has led efforts to establish a federal definition. This legislation represents the culmination of that work.

Current Cosponsors

The bill has strong bipartisan support with 26 cosponsors:

Senate

• Sen. John Cornyn (R-TX)
• Sen. Jeff Merkley (D-OR)
• Sen. Ruben Gallego (D-AZ)
• Sen. Bernie Moreno (R-OH)

House

• Rep. Pat Fallon (R-TX) — Lead Sponsor
• Rep. Brittany Pettersen (D-CO)
• Rep. Janelle Bynum (D-OR)
• Rep. Ken Calvert (R-CA)
• Rep. Suzanne Bonamici (D-OR)
• Rep. Julia Brownley (D-CA)
• Rep. Vince Fong (R-CA)
• Rep. John Garamendi (D-CA)
• Rep. Josh Harder (D-CA)
• Rep. Val T. Hoyle (D-OR)
• Rep. Young Kim (R-CA)
• Rep. Doug LaMalfa (R-CA)
• Rep. Sam Liccardo (D-CA)
• Rep. Dan Newhouse (R-WA)
• Rep. Jay Obernolte (R-CA)
• Rep. Emily Randall (D-WA)
• Rep. Raul Ruiz (D-CA)
• Rep. Andrea Salinas (D-OR)
• Rep. Kim Schrier (D-WA)
• Rep. David Valadao (R-CA)
• Rep. Eugene Vindman (D-VA)
• Rep. George Whitesides (D-CA)

What This Means for Your District

If enacted, the Special District Fairness and Accessibility Act would:

• Clarify eligibility: Special districts would be formally recognized as eligible recipients of federal financial assistance across all programs.
• Improve access to funding: Districts could compete fairly for grants and resources currently restricted to cities, counties, and states.
• Reinforce local control: Decision-making stays with the communities special districts serve.
• Strengthen infrastructure: Better access to federal resources means better capacity to maintain critical public services.

Call to Action

The bill now moves to the full House for consideration. NSDA and district advocates are actively soliciting new cosponsors.

What you can do:

• Contact your Congressional representative's district office
• Invite your Congressmember to visit your district or attend an event
• Provide an update on the services your district delivers and why federal recognition matters
• Ask them to cosponsor H.R.2766

Find your representative at house.gov.

Next Steps

The bill must pass the full House, then the Senate, before reaching the President's desk. With strong bipartisan support out of committee, advocates are optimistic about the bill's prospects.

Block Ops will continue to track this legislation and provide updates as it moves through Congress.