Unfunded Mandates Accountability and Transparency Act of 2026

The Unfunded Mandates Accountability and Transparency Act of 2026 aims to update and strengthen the Unfunded Mandates Reform Act of 1995. It proposes to close existing loopholes that allow federal agencies to issue regulations without fully accounting for the financial burden they place on state, local, and tribal governments, as well as the private sector. The bill would require agencies to conduct more rigorous cost-benefit analyses for any "major rule"—defined as a regulation likely to have an annual economic impact of $100 million or more.

If enacted, the legislation would expand oversight by including independent regulatory agencies that were previously exempt from certain reporting requirements. It also aims to increase public participation by directing agencies to consult with private sector entities and small businesses early in the rulemaking process. Furthermore, the bill would allow congressional committee leaders to request retrospective reviews of existing regulations to determine their actual economic impact over time.

For everyday citizens and small business owners, this bill could lead to more transparency regarding how federal mandates affect consumer prices and local tax burdens. By requiring agencies to account for indirect costs, such as lost profits or expenses passed on to consumers, the bill seeks to ensure that the federal government considers the full economic consequences of its decisions before they become law.