What does the Unfunded Mandates Reform Act require the congressional budget office to do?

The Unfunded Mandates Reform Act (UMRA), enacted in 1995, requires the Congressional Budget Office (CBO) to estimate the costs of unfunded mandates on state and local governments as well as the private sector. This act was designed to increase awareness of the financial implications that unfunded federal mandates impose on these entities. By requiring cost estimates, the CBO helps ensure that legislators are aware of potential financial burdens that their proposed legislation might create, particularly when the federal government imposes obligations without providing corresponding funding. This fosters a more informed legislative process and encourages consideration of the fiscal impact on state and local governance.

The other options do not accurately reflect the requirements set forth by the UMRA. For example, the act does not mandate that all congressional mandates are funded, nor does it limit the number of mandates introduced in Congress. Additionally, while identifying sponsors of bills is an important function of Congress, it is not part of the CBO's responsibilities under the UMRA.