H.R. 7525 would require the Office of Management and Budget to issue guidance to clarify how federal agencies may recognize special districts as units of local government when considering eligibility for federal financial assistance. Special districts provide such public services as fire protection, municipal water and wastewater treatment, and electric power supply. CBO estimates that enacting H.R. 7525 would not affect direct spending or revenues. CBO estimates that implementing the legislation would cost less than $500,000 over the 2025-2029 period; any spending would be subject to the availability of appropriated funds. The legislation contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.