EveryLibrary Institute Supports H.R. 2766: Recognizing Special Districts in Federal Law
The House Committee on Oversight and Government Reform recently advanced the Special District Fairness and Accessibility Act of 2026 (H.R. 2766) by a bipartisan vote of 32–8. The legislation would establish, for the first time, a formal federal definition of “special district” and ensure that these entities are eligible for appropriate federal financial assistance.
The EveryLibrary Institute supports H.R. 2766 as a necessary and overdue step toward aligning federal policy with the realities of how essential public services, including many public libraries, are governed and funded across the United States. The absence of a clear federal definition of “special district” continues to limit many public libraries' ability to access federal grant programs on equal footing with municipalities.
As we have been discussing since the last session, this is not an abstract problem. During the COVID-19 pandemic, library districts in a number of states were unable to directly access CARES Act and ARPA relief funds, despite serving on the front lines of community response. While some funding was distributed through state library agencies, most independently governed library districts could not fully benefit from the same direct eligibility afforded to cities, counties, and other units of general-purpose government.
About 30% of public libraries operate as library districts that meet the definition of a district, not a municipality, under current federal law. For these institutions, the lack of federal recognition as local governments has ongoing consequences across a wide range of programs, from disaster recovery to broadband deployment to capital investment.
H.R. 2766 addresses this structural gap by establishing a clear, uniform federal definition of “special district,” consistent with earlier legislative efforts in the previous Congress. The bill affirms that these entities are political subdivisions of a state created to perform specific governmental functions and ensures that they are eligible for federal financial assistance where appropriate.
By codifying this definition, Congress would provide federal agencies with the clarity needed to consistently include special districts in program design and implementation.
Importantly, the legislation does not create new programs or mandates. Instead, it ensures that existing federal opportunities are accessible to all eligible local governments, including those that deliver library services.
H.R. 2766 builds on earlier bipartisan legislation in the previous Congress, including the Special District Grant Accessibility Act (H.R. 7525, 2024), which advanced through committee but did not ultimately become law. The reintroduction of this policy reflects growing consensus that the issue must be addressed.
The policy problem is established, the legislative approach has been tested, and bipartisan support continues to strengthen.
The EveryLibrary Institute has been engaged in this effort across both Congresses and remains the only national library organization participating in the National Special Districts Coalition. Our continued involvement ensures that library district interests are represented as federal policy evolves.
Library districts are a core part of the nation’s civic infrastructure. They provide access to education, workforce development resources, digital connectivity, and community services that are essential to local and regional well-being.
Expanding eligibility for federal programs would create new opportunities for investment in library facilities, broadband access, workforce initiatives, and community-centered services delivered through these districts.
At its core, H.R. 2766 is about equitable access to federal resources. Communities should not be disadvantaged based on the structure of their local governance. Aligning federal policy with the full range of local government models strengthens the ability of public institutions to serve their communities effectively.
Advancing H.R. 2766 represents meaningful bipartisan progress toward modernizing federal policy to reflect how public services are actually delivered across the country. The EveryLibrary Institute supports this legislation as a practical, nonpartisan solution to a longstanding policy gap. Ensuring that library districts and other special-purpose governments can fully participate in federal funding opportunities will better position them to meet the needs of the communities they serve.