Fischer Introduces Bill to Reduce Unfunded Mandates, Spur Job Growth

WASHINGTON - Today, U.S. Senator Deb Fischer (R-NE) introduced the Unfunded Mandates Accountability and Transparency Act (UMATA) to reduce unfunded federal government mandates on local governments and businesses, allowing for more regulatory freedom and job creation. Senator James Lankford (R-OK) joined Fischer as an original cosponsor of the bill.

"The federal government has thrown unfunded mandates on businesses and local governments across the country for far too long," said Fischer. "Overregulating has restrained job growth and created a bureaucracy that only hurts communities back home. This bill breaks open the regulatory process and gives the public a real say in how these decisions are made. The federal government should be in the business of encouraging economic growth, not tying the hands of those who drive it."

This legislation expands a nearly two-decade-old law, the Unfunded Mandates Reform Act (UMRA), which was enacted to prevent the spread of unfunded federal mandates. It would increase accountability by requiring agencies to perform cost analyses and updating the accounting structure to include other undocumented costs to consumers. Specifically, the UMATA will:

• Clarify that all agencies must conduct UMRA analyses unless a law "expressly" prohibits agencies from doing so.
• Direct agencies to consult with the public and the private sector when developing regulations.
• Allow a chairman or ranking member of any standing or select committee of the Senate or House of Representatives to request an agency to conduct a retrospective analysis of an existing federal regulatory mandate.
• Include costs passed on to consumers in the analysis of the mandate's total cost.

The UMATA is supported by the National Federation of Independent Business and the Competitive Enterprise Institute.

Dylan Rosnick, Principal, Federal Government Relations, NFIB, said, "NFIB members continuously rank 'unreasonable government regulation' as one of the top issues facing their business. Regulatory costs exploded under the previous administration, totaling an unprecedented $1.8 trillion. This mountain of red tape disproportionately impacts small businesses, many of which do not have dedicated compliance officers or lawyers to assist with compliance. The Unfunded Mandates Accountability and Transparency Act would assist small businesses by requiring all agencies to properly analyze regulatory costs and allowing Congress the ability to stop new private sector mandates before they are even enacted. NFIB supports this legislation and thanks Senator Fischer for her leadership in reducing red tape for small businesses."

Clyde Wayne Crews Jr., Fellow in Regulatory Studies, Competitive Enterprise Institute, said, "The Unfunded Mandates Accountability and Transparency Act (UMATA) represents a timely and necessary modernization of federal oversight. Nearly three decades ago, the original and overwhelmingly bipartisan Unfunded Mandates Reform Act brought much-needed discipline to Washington. But since then, agencies learned to work around its requirements, leaving Congress, states, and the public without a clear picture of the true costs of federal directives. UMATA restores transparency by strengthening and clarifying requirements for agency regulatory impact analyses. The new reporting will more fully account for regulatory costs imposed on state and local governments, small businesses, and consumers. By requiring more rigorous and consistent analysis of regulatory impacts, this legislation helps policymakers see the trade-offs people face in complying with federal mandates. We commend Senator Fischer for introducing this companion legislation that advances commonsense reforms aimed at increasing transparency, restoring congressional oversight, and helping safeguard taxpayers and local communities from hidden regulatory burdens."

Background

In 1995, the UMRA was signed into law by President Bill Clinton. This law was designed to prevent the spread of unfunded federal mandates by establishing reporting requirements on the cost of mandates. Since that time, the Government Accountability Office has identified 14 loopholes that permit an agency to avoid UMRA analysis requirements.

Rep. Virginia Foxx (NC-05) has introduced companion legislation in the House of Representatives.

See full bill text here.

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