Overview

Title

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.

ELI5 AI

H. R. 2766 is a plan to make sure special districts, like those that manage water or fire services, can get money from the government just like towns and cities do. The boss of a big office called OMB has to tell other government workers how to make this happen properly.

Summary AI

H. R. 2766 is a bill that aims to ensure special districts are recognized as local government units for the purpose of receiving federal financial assistance. It requires the Director of the Office of Management and Budget (OMB) to issue guidance to federal agencies on how to officially recognize these special districts. Agencies must comply with this guidance within a year, adjusting their policies accordingly. Additionally, the Director must report on the implementation and adherence to this guidance within two years of the bill's enactment.

Published

2025-04-09
Congress: 119
Session: 1
Chamber: HOUSE
Status: Introduced in House
Date: 2025-04-09
Package ID: BILLS-119hr2766ih

Bill Statistics

Size

Sections:
2
Words:
663
Pages:
4
Sentences:
14

Language

Nouns: 224
Verbs: 41
Adjectives: 45
Adverbs: 5
Numbers: 20
Entities: 47

Complexity

Average Token Length:
4.59
Average Sentence Length:
47.36
Token Entropy:
4.86
Readability (ARI):
27.47

AnalysisAI

The bill, known as the "Special District Fairness and Accessibility Act," proposes a new approach to how special districts are recognized for the purpose of receiving federal financial assistance. It mandates the Director of the Office of Management and Budget (OMB) to issue guidance that clarifies the recognition of special districts as units of local government. This, in turn, would allow these districts to be eligible for federal financial aid. The bill also defines critical terms, such as "special district," "agency," and "federal financial assistance," establishing the framework for its implementation.

General Summary of the Bill

H.R. 2766 is designed to ensure that special districts, which are political subdivisions created under state laws with specific boundaries and financial independence, are considered local governments when federal financial assistance determinations are made. Within 180 days of enactment, the OMB must issue guidance on this matter, followed by each agency's integration of this guidance within one year. Two years post-enactment, the OMB will report to Congress on the agencies’ adherence to the new guidelines.

Summary of Significant Issues

Several key issues arise from this legislation:

  1. Tight Implementation Timeline: The bill sets a stringent timeline for the OMB and numerous federal agencies to comply. With only 180 days for the issuance of guidance, a year for compliance by agencies, and two years for a final report, the timeline is highly ambitious and may not allow for thorough execution or evaluation. This could lead to inconsistencies and rushed compliance efforts.

  2. Complex Definition of Special Districts: The bill's definition of "special district" involves specific criteria, such as "significant budgetary autonomy or control," which may be vague and lead to different interpretations. This complexity might make it difficult for such entities to prove their eligibility for federal financial assistance uniformly across different states and agencies.

  3. Exclusion of Certain Funding Types: The definition of "Federal financial assistance" excludes reimbursements, potentially affecting existing programs that rely on such financial structures. The impact on programs and funding flows that currently depend on reimbursements needs careful consideration.

Potential Impact on the Public and Stakeholders

Broad Public Impact: The bill aims to bring more inclusive access to federal financial aid for special districts, which can lead to enhanced public services in various communities. However, the quick timeline for implementation might result in uneven application, potentially leading to confusion and varied service levels across districts.

Stakeholder Impact: - Positive Impacts: Special districts across the nation could benefit significantly, as improved access to federal assistance can bolster their resources, improve infrastructure, and enhance community services. This change recognizes the unique roles these districts play in local governance.

  • Negative Impacts: Conversely, federal agencies might face challenges accommodating the proposed changes within the set timelines, risking incomplete implementation. Additionally, the ambiguity in the bill's definitions could lead to disputes or delays in funding to certain districts if eligibility is questioned.

Overall, while the bill aims to bring fairness and accessibility to special districts, the execution of its ambitious goals will require careful planning and flexible application to truly serve its intended purpose. Stakeholders will need to engage actively in the bill’s roll-out to ensure benefits are realized and potential drawbacks mitigated.

Issues

  • The feasibility of the timeline for implementation and reporting is questionable. Section 2(a) mandates a tight schedule with only 180 days for the OMB Director to issue guidance, 1 year for agency compliance, and 2 years for the final report. This rapid timeline may not allow for comprehensive evaluation and compliance across all relevant agencies, potentially leading to rushed and incomplete implementation.

  • The definition of 'special district' in Section 2(b)(4) is complex and may cause difficulties in determining eligibility for Federal financial assistance. The criteria such as 'significant budgetary autonomy or control' are not clearly defined, which could lead to inconsistent interpretations and applications across different states and agencies.

  • The exclusion of 'reimbursement for services rendered' from the definition of 'Federal financial assistance' as outlined in Section 2(b)(3)(B) raises questions about how this exclusion will affect existing agency programs or funding distributions. There might be unintended impacts on programs that rely on reimbursements.

  • Section 1 is essentially a title and lacks the detailed content necessary to assess potential issues related to spending, clarity, or unfair favorability to specific groups, requiring further scrutiny of subsequent sections.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the Special District Fairness and Accessibility Act establishes its short title, allowing it to be referred to simply by this name.

2. Agency financial assistance guidance on special districts Read Opens in new tab

Summary AI

In this section, it explains that within 180 days of the law being enacted, the Office of Management and Budget (OMB) must provide guidelines on how agencies should recognize special districts as eligible for federal financial help. Agencies then have a year to follow these guidelines, and two years after the law is enacted, the OMB must report to Congress on how well the agencies are complying. The section also defines key terms like "agency," "Director," "federal financial assistance," "special district," and "state."