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1 Andrew Laughlin, et al., CBO Explains Its Principles for Identifying Mandates in Legislation 1 (May 25, 2023)

handle is hein.congrec/cboesisp0001 and id is 1 raw text is: 




























CB O Explains Its Principles for

Identifying Mandates in Legislation


In cost estimates, the Congressional Budget Office provides information to the Congress about the
effects of legislation on the federal budget. As required by the Unfunded Mandates Reform Act of
1995 (UMRA),  the agency also examines some  of the effects of federal legislation on state, local, and
tribal governments and on private-sector entities by identifying what that act defines as mandates.

In general, mandates require a nonfederal entity to take an action or comply with a prohibition. The
federal minimum  wage  is an example of such a mandate on public and private-sector employers, who
are required by federal law to pay a minimum hourly amount to certain employees. As defined in UMRA,
the direct costs of that mandate are the additional amounts paid by employers. (The question of who
ultimately bears those costs is more complicated and beyond the scope of UMRA.)

UMRA   aims to ensure that the Congress receives information about the presence and potential costs
to nonfederal entities of federal mandates as it considers proposed legislation. CBO, through its
Public and Private Mandates Unit, provides such information to the Congress. To promote a thorough
understanding  of the agency's analyses, this primer describes the principles that CBO follows to identify
mandates  in legislation.


Notes: This document is one in a series of primers explaining various elements of CBO's work to support the budget process and to help the Congress make
budget and economic policy. This and other primers in the series are available at www.cbo.gov/topics/budget/budget-concepts-and-process.
For an explanation of key terms used throughout this primer, see Congressional Budget Office, Common Budgetary Terms Explained (December 2021),
www.cbo.gov/publication/57420; for detailed definitions, see CBO's Glossary at www.cbo.gov/publication/42904.