Sponsors (4)
Last progress June 10, 2025 (8 months ago)
Introduced on June 10, 2025 by John Cornyn
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Requires the OMB Director to issue guidance that explains when a special district is considered a unit of local government eligible to receive Federal financial assistance, directs federal agency heads to adopt that guidance, and requires OMB to report to two congressional committees on agencies' compliance. The section also defines key terms used in the guidance, including agency, Director, Federal financial assistance, special district, and State.
The Director of the Office of Management and Budget must issue guidance that clarifies how an agency recognizes a special district as a unit of local government eligible to receive Federal financial assistance. This guidance must be issued not later than 180 days after the date of enactment of this Act.
Not later than 1 year after the date the OMB guidance is issued, the head of each agency must implement the requirements of that guidance and conform any policy, principle, practice, procedure, or guideline related to administering the agency's Federal financial assistance programs.
Not later than 2 years after the date of enactment of this Act, the Director must submit a report to the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs evaluating agency implementation of and conformity to the OMB guidance.
The term 'agency' has the meaning given in section 552 of title 5, United States Code.
The term 'Director' means the Director of the Office of Management and Budget.
Who is affected and how:
Special districts: Most directly affected because the guidance will determine when they are treated as "units of local government" eligible for federal financial assistance; clarified criteria may expand or narrow access to federal grants, cooperative agreements, and other assistance.
Federal agencies: Must review, adopt, and apply OMB guidance to their programs. Agencies may need to update internal grant guidance, application review processes, and training for staff who make eligibility determinations.
States and local governments: May see indirect effects because the classification of special districts can change the flow of federal funds and the administrative routing of assistance. State grant administrators may need to coordinate with special districts and federal agencies on eligibility questions.
Applicants and recipients of federal assistance: Entities that interact with or are partnered with special districts (contractors, subgrantees, service recipients) could be affected if eligibility changes alter funding availability or award structures.
Congressional oversight: Committees receiving OMB reports gain a clearer basis to monitor agency compliance and consistency across federal programs.
Overall, the provision is administrative and clarifying in nature. It reduces uncertainty by creating a uniform federal test but shifts administrative work onto OMB and agency staff. The practical effect on funding will depend on the substance of the guidance OMB issues and how strictly agencies apply it; some special districts might gain clearer access to programs, while others could face narrower eligibility depending on the criteria adopted.
Updated 3 days ago
Last progress April 9, 2025 (10 months ago)