Fiscal federalism

The term “unfunded federal mandates” is used to challenge federal obligations imposed on states and localities without accompanying funding. When the government imposes new regulations or expectations but doesn’t provide financial assistance or resources, it is what is known as unfunded mandate. Often, when federal laws are passed, they include funding for whatever must happen as a result. When they don’t, the programs they create are unfunded. But they are still mandatory. This is why they are known as unfunded mandates. Familiar examples of federal unfunded mandates in the United States include the Americans with Disabilities Act and Medicaid.