Defining Special Districts: Strengthening Local Control & Access

Federal law currently lacks a clear definition of “special district,” creating unnecessary barriers to federal resources, emergency funding, and essential grants. Special districts provide critical public services—water, fire protection, healthcare, public transportation, and more—yet they are often overlooked in federal policy discussions.  Since 2020, the National Special Districts Association (NSDA) has led efforts to establish a federal definition. This work has resulted in proposed legislation to amend U.S. Code Title 13, ensuring that special districts are formally recognized and equitably included in federal programs.

Proposed Federal Definition: Why Special Districts Matter

Empowering Local Communities

Special districts are the purest expression of local control. Created by communities to meet their specific needs, they operate with direct accountability to residents. Whether managing water infrastructure, maintaining fire protection, or ensuring public health, these districts respond swiftly and effectively to local demands without layers of bureaucracy.

Ensuring Fair Access to Federal Resources

The absence of a federal definition has resulted in special districts being excluded from critical programs such as COVID-19 relief funding, infrastructure investments, and disaster recovery aid. Establishing a definition will eliminate these barriers, ensuring that special districts receive the support they need to continue serving their communities.

Delivering Efficiency & Specialization

Unlike general-purpose governments, special districts focus solely on one service area, leading to operational efficiencies, cost-effective management, and innovative solutions. This specialization allows them to deliver high-quality services without competing priorities, ultimately benefiting taxpayers and service users.

Strengthening Infrastructure & Public Safety

From maintaining clean drinking water systems to wildfire mitigation, special districts manage the essential infrastructure that keeps communities safe and thriving. Recognizing these districts in federal law enhances their ability to plan, invest, and maintain resilience in the face of growing challenges.

Call to Action: Support the Special Districts Recognition Act

We urge Congress to support and cosponsor the Special Districts Fairness Act to establish a federal definition in Title 13 of U.S. Code. This legislation will:

Clarify the Role of Special Districts 

Ensuring they are formally recognized as vital units of local government.
Improve Access to Federal Funding – Allowing special districts to compete fairly for grants and resources.
Reinforce Local Control & Accountability – Keeping decision-making in the hands of the communities they serve. 

Support Critical Public Services

Strengthening infrastructure, emergency response, and essential operations.
Now is the time to ensure that special districts receive the recognition and resources they deserve. Join us in championing local control, efficiency, and community-driven solutions for a stronger, more resilient future!