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UMRA allows the United States Congress to decline unfunded federal mandates within legislation if such mandates are estimated to cost more than the threshold amounts estimated by the Congressional Budget Office.UMRA does not apply to "conditions of federal assistance; duties stemming from participation in voluntary federal programs; rules issued by independent regulatory agencies; rules issued without a general notice of proposed rulemaking; and rules and legislative provisions that cover individual constitutional rights, discrimination, emergency assistance, grant accounting and auditing procedures, national security, treaty obligations, and certain elements of Social Security".The Clean Air Act was passed in 1963 to support the United States Environmental Protection Agency (EPA), established on December 2, 1970, in developing research programs looking into air pollution problems and solutions.The EPA received authority to research air quality.In the United States, federal mandates are orders that induce "responsibility, action, procedure or anything else that is imposed by constitutional, administrative, executive, or judicial action" for state and local governments and/or the private sector.An unfunded mandate is a statute or regulation that requires a state or local government to perform certain actions, with no money provided for fulfilling the requirements.

The official legislation summarizes the bill as being: "An Act: To curb the practice of imposing unfunded Federal mandates on States and local governments; [...] and to ensure that the Federal Government pays the costs incurred by those governments in complying with certain requirements under Federal statutes and regulations, and for other purposes." It also allowed the Congressional Budget Office to estimate the cost of mandates to SLTGs and to the private sector, and allows federal agencies issuing mandates to estimate the costs of mandates to the entities that said mandates regulate.The Act was written to amend UMRA by having the CBO compare the authorized level of funding in legislation to the costs of carrying out any changes.It was done by also amending the Congressional Budget Act of 1974.An agency enforcing the mandate must also choose the least-costly option that still achieves the goals of the mandate, as well as consult with elected officials of the SLTG to allow for their input on the implementation of the mandate and its goals.Section 203 of UMRA is a bit more extensive in that it applies to all regulatory requirements that significantly affect small governments, and requires federal agencies to provide notice of the requirements to the government(s), enable the officials of the government(s) to provide their input on the mandate, and inform and educate the government(s) on the requirements for implementation of the mandate.

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