Press Releases

WASHINGTON, D.C. – Rep. Pat Fallon (TX-04) introduced the Special District Fairness Act, a bill that would codify a first-ever definition of “special district” in federal law and ensure that districts are eligible for all appropriate forms of federal financial assistance. 

“The consequence of current law is that some communities served by special districts—more than 3,350 of which are located in the State of Texas alone—cannot access certain federal funding opportunities, which has a huge impact on the ability of special districts to provide vital services and meet community needs,” Rep. Fallon said. "Importantly, this bill does not increase government spending. Rather, it levels the playing field by allowing special districts equal access to the same federal funds authorized by Congress that have been made available to other local governments."

“This piece of legislation resets the board and ensures special districts have the resources, autonomy, and flexibility to address the unique challenges and opportunities facing their communities.” 

This bill would require the White House Office of Management and Budget to issue guidance to federal agencies requiring special districts to be recognized as local governments for the purpose of federal financial assistance determinations. Specifically, it would establish the following definition in federal law: 

“The term ‘special district’ means a political subdivision of a State, with specified boundaries and significant budgetary autonomy or control, created by or pursuant to the laws of the State, for the purpose of performing limited and specific governmental or proprietary functions that distinguish it as a significantly separate entity from the administrative governance structure of any other form of local government unit within a State.”