Requires the Office of Management and Budget to issue guidance clarifying how federal agencies treat special districts as units of local government when deciding eligibility for federal financial assistance, and requires agencies to conform their grant policies to that guidance.

• Requires OMB to issue guidance within 180 days after enactment on how an agency recognizes a special district as a unit of local government for federal financial assistance eligibility.
• Requires each agency, within one year after that guidance is issued, to implement it and conform any policy, procedure, or guideline governing its federal financial assistance programs.
• Requires OMB to report to the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs within two years after enactment on agency implementation.
• Defines a special district as a political subdivision of a State with specified boundaries and significant budgetary autonomy, created under state law to perform limited and specific functions.

• Oversight and Government Reform Committee (House)

Government Operations and Politics