Title II of the Unfunded Mandates Reform Act of 1995, (2 U.S.C. §§ 658, 1501-03, 1531-34), establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. The Act requires each Federal agency, not including independent regulatory agencies, to prepare a written assessment of the effects of any proposed or final rule that contains a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year. Section 204(a) of the Act, (2 U.S.C. § 1534(a)), requires the Federal agency to develop an effective process to permit timely input by elected officers (or their designees) of State, local, and tribal governments on such a proposed "significant intergovernmental mandate." (See Federalism; Regulatory Reform.)

Although the Act is enforced in the Presidential Review process, judicial review of agency actions under the Act is quite limited.