Special District Fairness and Accessibility Act

This bill makes sure “special districts” are treated like local governments when the federal government decides who can get federal financial assistance. It tells the Office of Management and Budget (OMB) to publish clear guidance so all federal agencies recognize special districts for these funding decisions. A special district is a local unit created by a state, with set boundaries and its own budget, to handle limited, specific public services. The bill also says “State” includes the 50 states, D.C., U.S. territories and possessions, and federally recognized Indian Tribes.

Key points:

• Who is affected: Special districts and federal agencies that run financial assistance programs.
• What changes: OMB must issue guidance so agencies treat special districts as local governments for funding eligibility; agencies must update their policies to match; OMB must later review and report on how well agencies followed the guidance.
• When: OMB issues guidance within 180 days after the bill becomes law; agencies have 1 year after that to comply; OMB reports back within 2 years of the law’s start.