S. 4673 – Special District Grant Accessibility Act

AI-Generated Summary

Updated January 20, 2026 at 5:53 PM UTC

The bill requires the Director of the Office of Management and Budget to issue guidance so that federal agencies treat special districts as local governments when deciding eligibility for federal grants and other financial assistance. It sets a 180‑day deadline for the guidance, obligates agencies to adopt the guidance within a year, and mandates a report on implementation within two years. The rule would affect special districts—state‑created entities that provide specific services—and the federal agencies that award them money.

Key Provisions

OMB must issue guidance within 180 days of the law’s enactment explaining how agencies should recognize special districts as local governments for grant eligibility.
Each federal agency must adopt the guidance and adjust its policies, procedures, and guidelines within one year of the guidance’s release.
The OMB Director must submit a report to the House Oversight Committee and the Senate Homeland Security and Governmental Affairs Committee within two years evaluating agency implementation of the guidance.
The bill defines “special district” as a political subdivision of a state with its own budget and specific functions, and clarifies what counts as federal financial assistance.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

July 11, 2024

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SenateIntro Referral

Introduced in Senate

July 11, 2024

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

July 11, 2024

Bill Text

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Introduced in SenateIssued July 11, 2024

II

118th CONGRESS

2d Session

S. 4673

IN THE SENATE OF THE UNITED STATES

July 11 (legislative day, July 10), 2024

Ms. Sinema (for herself and Mr. Cornyn) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

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.

1.

Short title

This Act may be cited as the Special District Grant Accessibility Act.

2.

Agency financial assistance guidance on special districts

(a)

Requirements for agency acknowledgment of special districts as grant recipients

(1)

OMB guidance

Not later than 180 days after the date of the enactment of this Act, the Director shall issue guidance that clarifies how an agency recognizes a special district as a unit of local government for the purpose of being eligible to receive Federal financial assistance.

(2)

Agency requirements

Not later than 1 year after the date on which the guidance is issued pursuant to paragraph (1), the head of each agency shall implement the requirements of such guidance and conform any policy, principle, practice, procedure, or guideline relating to the administration of the Federal financial assistance programs of the agency.

(3)

Reporting requirement

Not later than 2 years after the date of the enactment of this Act, the Director shall submit to the Committee on Oversight and Accountability of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report that evaluates agency implementation of and conformity to the guidance issued pursuant to paragraph (1).

(b)

Definitions

In this section:

(1)

Agency

The term agency has the meaning given the term in section 552 of title 5, United States Code.

(2)

Director

The term Director means the Director of the Office of Management and Budget.

(3)

Federal financial assistance

The term Federal financial assistance—

(A)

means assistance that a non-Federal entity receives or administers in the form of a grant, loan, loan guarantee, property, cooperative agreement, interest subsidy, insurance, food commodity, direct appropriation, or other assistance; and

(B)

does not include an amount received as reimbursement for services rendered to an individual in accordance with guidance issued by the Director.

(4)

Special district

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.

(5)

State

The term State means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.