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A note to our readers: Congress is on recess for the next two weeks in observance of the Easter holiday. You'll receive the next newsletter when both chambers reconvene on April 28. In the meantime, please don’t hesitate to reach out with any questions.

Special District Fairness and Accessibility Act Introduced in the House

Bill would formalize a federal statutory definition of special district

Last week, Representative Pat Fallon (R-TX) and Brittany Pettersen (D-CO) introduced legislation (H.R. 2766) that would establish a first-ever formal definition of “special district” in federal law. The bipartisan bill – which is NSDA's number one federal legislative priority – also would direct the White House Office of Management and Budget (OMB) to issue guidance to federal agencies requiring special districts to be recognized as local governments for purposes of ensuring that districts have access to all appropriate forms of federal financial assistance. 

It should be noted that H.R. 2766 is identical to legislation that was overwhelmingly approved by the full House of Representatives last year, with the exception of the title. This year’s bill is known as the Special District Fairness and Accessibility Act.

Pursuant to H.R. 2766, federal agencies would have one year to implement OMB’s guidance and to conform any agency policy, principle, practice, procedure, or guideline relating to the administration of federal financial assistance programs. Implementation of the bill’s requirements would result in special districts being formally recognized as units of local government across the federal bureaucracy, thus ensuring that special districts are adequately included in federal-state-local planning processes and have access to all relevant funding streams and grant programs.

The Fallon-Pettersen bill has been referred to the House Oversight and Government Reform Committee. It is unclear when the legislation will be considered by the committee. In the upper chamber, Senators John Cornyn (R-TX) and Jeff Merkley (D-OR) are expected to introduce a companion version of the Special District Fairness and Accessibility Act in the near future.

 House Republicans Pass Senate’s Budget Resolution Framework, Unlocking Reconciliation

Last week, the House of Representatives narrowly approved the Senate’s budget framework on a 216-214 vote, effectively unlocking the filibuster-proof reconciliation process. Only two Republicans – Representatives Thomas Massie (R-KY) and Victoria Spartz (R-IN) – voted against the resolution, while two Republicans – Representatives David Valadao (R-CA) and Bob Onder (R-MO) – abstained from the vote.

While the House vote represents a significant victory for Speaker Mike Johnson (R-LA), passage of the resolution was far from certain. Ahead of the floor vote, GOP leaders scrambled to win over conservatives who had initially opposed the measure. For their part, members of the House Freedom Caucus were concerned that the resolution would not ensure adequate spending cuts. However, after the vote, they received assurances from Speaker Johnson, Senate Majority Leader John Thune (R-SD), and the White House that a minimum of $1.5 trillion in spending cuts would be included in the final budget reconciliation package. Conversely, for their part, moderate Republicans took issue with the budget blueprint’s potential reductions to Medicaid and other key social programs.

The resolution’s passage completes the first step of the reconciliation process, which enables the Senate to bypass the 60-vote filibuster and proceed without Democratic support. The next phase, however, will be more complex. Specifically, committees in both chambers must write legislation that adheres to the spending levels in the resolution and address contentious issues such as the extent of spending cuts, the duration of tax cuts, and the cap on the state-and-local tax deduction. Of particular concern to moderates is the directive for the House Energy and Commerce Committee to identify at least $880 billion in cuts, which they fear could heavily impact Medicaid. After House and Senate committees mark up their respective titles of the reconciliation bill, the chambers must find consensus and pass a final version of the legislation.

Looking ahead, Speaker Johnson is aiming to pass the final bill by Memorial Day, working under the pressure of a looming debt ceiling deadline. Notably, the Congressional Budget Office estimates the U.S. could hit its borrowing limit as early as August or September. The final budget resolution would allow Congress to raise the debt ceiling by as much as $5 trillion.

 Bipartisan Senate Coalition Unveils Revised Fix Our Forests Act

A bipartisan group of senators – including Senators Alex Padilla (D-CA), John Curtis (R-UT), John Hickenlooper (D-CO), and Tim Sheehy (R-MT) – recently introduced legislation (S. 1462) that seeks to restore forest health, increase resiliency to catastrophic wildfires, and protect communities in the wildland-urban interface. The comprehensive bill, which is a companion to the House-passed Fix Our Forests Act (FOFA; H.R. 471), reflects months of bipartisan negotiations to find consensus on how to best accelerate and improve vegetation management practices, streamline environmental reviews, and strengthen partnerships between federal agencies and local stakeholders.

Like the House version, S. 1462 includes language spearheaded by NSDA that would formally define special districts and clarify that they are, in fact, an eligible local government partner in the forest management policy space. It also expands the Good Neighbor Authority (GNA) to include special districts – enabling them to partner with the U.S. Forest Service and Bureau of Land Management on cross-jurisdictional restoration work.

While both bills share other key elements – such as expanded categorical exclusions under NEPA, strengthened stewardship contracting tools, and litigation reform provisions – the Senate bill includes several notable additions. Chief among them is the creation of a Wildfire Intelligence Center, modeled after the National Weather Service, to serve as a centralized hub for real-time data, predictive modeling, and interagency coordination. The Center is designed to improve situational awareness and support faster, more informed federal, state, and local response. In addition, the Senate bill expands opportunities for local government engagement, including new cooperative authorities for mitigation work and fireshed assessments. It also enhances the Community Wildfire Defense Grant Program, creates new community-focused wildfire research initiatives, and broadens watershed protection efforts to include state, local, and private lands adjacent to federal forest areas.

Although the House-passed version received some bipartisan support, a number of Democratic lawmakers have expressed concerns that the package could weaken bedrock environmental laws. Both bills aim to reduce legal delays for high-priority mitigation projects. The House version would limit injunctions unless substantial environmental harm is shown, impose a 120-day deadline for legal challenges, and require litigants to have participated in public comment to establish standing. These reforms aim to prevent frivolous lawsuits from stalling forest health projects while preserving legitimate legal recourse in cases of clear environmental harm.

The Senate bill pursues similar litigation reforms but incorporates additional procedural guardrails to ensure continued compliance with NEPA and maintain environmental protections, particularly when emergency authorities are used.

Looking ahead, and with bipartisan support in both chambers – as well as growing national attention on wildfire risk – the Fix Our Forests Act is gaining traction as a potential vehicle for meaningful reform. However, differences between the House and Senate versions, particularly on litigation reform and environmental safeguards, will need to be resolved before a unified package can advance.

A one-pager on the bill is available here, and a section-by-section on the bill is available here.