I 119THCONGRESS 1 STSESSION H. R. 2766 To require the Director of the Office of Management and Budget to issue guidance to agencies requiring special districts to be recognized as local government for the purpose of Federal financial assistance determina- tions. IN THE HOUSE OF REPRESENTATIVES APRIL9, 2025 Mr. F ALLON(for himself, Ms. PETTERSEN, Mr. VALADAO, Mrs. KIM, Mr. L AMALFA, Mr. NEWHOUSE, and Mr. OBERNOLTE) introduced the fol- lowing bill; which was referred to the Committee on Oversight and Gov- ernment Reform A BILL To require the Director of the Office of Management and Budget to issue guidance to agencies requiring special districts to be recognized as local government for the purpose of Federal financial assistance determinations. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Special District Fair-4 ness and Accessibility Act’’. 5 VerDate Sep 11 2014 08:06 Apr 22, 2025 Jkt 000000 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2766.IH H2766 mprince on LAP1J3WLY3PROD with $$_JOB 2 •HR 2766 IH SEC. 2. AGENCY FINANCIAL ASSISTANCE GUIDANCE ON 1 SPECIAL DISTRICTS. 2 (a) R EQUIREMENTS FOR AGENCYACKNOWLEDG-3 MENT OFSPECIALDISTRICTS ASGRANTRECIPIENTS.— 4 (1) OMB GUIDANCE.—Not later than 180 days 5 after the date of the enactment of this Act, the Di-6 rector shall issue guidance that clarifies how an 7 agency recognizes a special district as a unit of local 8 government for the purpose of being eligible to re-9 ceive Federal financial assistance. 10 (2) A GENCY REQUIREMENTS .—Not later than 1 11 year after the date on which the guidance is issued 12 pursuant to paragraph (1), the head of each agency 13 shall implement the requirements of such guidance 14 and conform any policy, principle, practice, proce-15 dure, or guideline relating to the administration of 16 the Federal financial assistance programs of the 17 agency. 18 (3) R EPORTING REQUIREMENT .—Not later than 19 2 years after the date of the enactment of this Act, 20 the Director shall submit to the Committee on Over-21 sight and Government Reform of the House of Rep-22 resentatives and the Committee on Homeland Secu-23 rity and Governmental Affairs of the Senate a report 24 that evaluates agency implementation of and con-25 VerDate Sep 11 2014 08:06 Apr 22, 2025 Jkt 000000 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2766.IH H2766 mprince on LAP1J3WLY3PROD with $$_JOB 3 •HR 2766 IH formity to the guidance issued pursuant to para-1 graph (1). 2 (b) D EFINITIONS.—In this section: 3 (1) A GENCY.—The term ‘‘agency’’ has the 4 meaning given the term in section 552 of title 5, 5 United States Code. 6 (2) D IRECTOR.—The term ‘‘Director’’ means 7 the Director of the Office of Management and Budg-8 et. 9 (3) F EDERAL FINANCIAL ASSISTANCE .—The 10 term ‘‘Federal financial assistance’’— 11 (A) means assistance that a non-Federal 12 entity receives or administers in the form of a 13 grant, loan, loan guarantee, property, coopera-14 tive agreement, interest subsidy, insurance, food 15 commodity, direct appropriation, or other as-16 sistance; and 17 (B) does not include an amount received as 18 reimbursement for services rendered to an indi-19 vidual in accordance with guidance issued by 20 the Director. 21 (4) S PECIAL DISTRICT.—The term ‘‘special dis-22 trict’’ means a political subdivision of a State, with 23 specified boundaries and significant budgetary au-24 tonomy or control, created by or pursuant to the 25 VerDate Sep 11 2014 08:06 Apr 22, 2025 Jkt 000000 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2766.IH H2766 mprince on LAP1J3WLY3PROD with $$_JOB 4 •HR 2766 IH laws of the State, for the purpose of performing lim-1 ited and specific governmental or proprietary func-2 tions that distinguish it as a significantly separate 3 entity from the administrative governance structure 4 of any other form of local government unit within a 5 State. 6 (5) S TATE.—The term ‘‘State’’ means each of 7 the several States, the District of Columbia, each 8 commonwealth, territory, or possession of the United 9 States, and each federally recognized Indian Tribe. 10 Æ VerDate Sep 11 2014 08:06 Apr 22, 2025 Jkt 000000 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2766.IH H2766 mprince on LAP1J3WLY3PROD with $$_JOB