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HR 7525 Update

We hope you’re curious about HR7525 and have been encouraging your special district partners to sign on. We’re excited to share that over 24,816 special districts and partners are supporting our efforts, with more joining daily. Our goal is to reach 25,000 signatories, so keep up the momentum—we need just 184 more!

Latest Status

The bipartisan Special District Grant Accessibility Act (SDGAA; H.R. 7525) was introduced by Representatives Pat Fallon (R-TX) and Brittany Pettersen (D-CO) on March 5 and passed the House with a 352-27 vote. On July 11, Senators Kyrsten Sinema (I-AZ) and John Cornyn (R-TX) introduced an identical companion bill (S. 4673). The Senate Homeland Security and Governmental Affairs Committee approved it with a 10-1 vote in late July. The SDGAA (H.R. 7525) is now awaiting consideration by the full Senate. Senators Sinema and Cornyn are working to ensure it gets a vote during the upcoming post-election, lame-duck session of Congress.

Key Points of the SDGAA

If you’re new to this issue or need talking points, the SDGAA will:

  1. Establish a formal definition of “special district” in federal law.
  2. Require the White House Office of Management and Budget (OMB) to issue guidance to federal agencies to recognize special districts as local governments for federal financial assistance. Agencies would have one year to implement this guidance.

Why H.R. 7525 is Important

  • COVID-19 Exclusion: Special districts were excluded from pandemic-era legislation that provided direct federal financial assistance to local governments, despite providing essential services like ambulance/EMS, hospital, and open space services.
  • Grant Ineligibility: Special districts face barriers to federal grant programs because the U.S. Census Bureau doesn’t recognize them as geographic units of government. This lack of recognition precludes them from receiving certain formula-driven programs.
  • Formal Definition Benefits: A formal definition will enhance access to federal programs, including those for critical infrastructure. It will also help include special districts in future legislative efforts, especially those creating new grant programs.

Examples of Ineligibility/Barriers

  • Transportation Alternatives / Rails-to-Trails: Many local park districts can’t access the USDOT’s TA program because they aren’t metropolitan planning organizations (MPOs).
  • USDOT’s Reconnecting Communities Program: Special districts aren’t listed as eligible entities, though they might qualify as local governments or non-profits.
  • USDA Rural Housing Preservation Grants: USDA staff are uncertain about special district eligibility.
  • EPA’s Clean-Heavy Duty Vehicles Program: Special districts aren’t explicitly listed as eligible entities.
  • Public Service Loan Forgiveness Program: Employees of certain special districts can’t access benefits intended for government agency workers.

Thank you to Paragon Government Relations for their work with Senators Sinema, Cornyn, and other supporters to ensure the SDGAA is passed by the full Senate and enacted into law.

If you have any questions, contact Chantal Unfug at chantalu@nationalspecialdistricts.org.