House Oversight panel advances bill to clarify federal recognition of special districts

The House Committee on Oversight and Accountability voted to report HR 2766, the Special District Fairness and Accessibility Act, after agreeing to an amendment in the nature of a substitute and completing a recorded vote that produced 32 ayes and 8 nays.

Committee Chair (Chair) framed the bill as a technical but consequential change that would direct the Office of Management and Budget to issue guidance to federal agencies clarifying that special districts are units of local government eligible to compete for federal financial assistance. The chair said there are about 35,000 special districts nationwide and that the bill ‘‘doesn’t increase government spending’’ but ‘‘puts them on equal footing’’ with counties and cities.

Representative Pat Fallon, the bill’s sponsor, entered letters of support into the record from the National Special Districts Association and the North Texas Municipal Water District and described examples of special districts in Texas, saying the measure would ‘‘establish the first ever formal federally recognized definition for special districts.’’

Ranking Member (Ranking Member) and other members described the bill as bipartisan and said it would help rural and urban communities by clarifying eligibility for existing federal programs. Representative Bridial (Miss Bridal) said special districts in her district provide utilities, broadband and emergency services and urged the committee to support the bill.

The committee agreed to the substitute by voice vote and later reconvened to record final passage of the committee report on HR 2766; the clerk reported 32 ayes and 8 nays. The bill was ordered favorably reported to the House.

The committee recessed and said it will reconvene to consider final floor action and any further proceedings as required by committee rules.