What is unfunded mandated?

Answer 1

I'm going to assume that you meant "What is an unfunded mandate" and in the context of government.

This is another one of those politically charged phrases that sounds horrible and oppressive but is not new or unique (either to government or private enterprise).

Broadly speaking, the term "unfunded mandate" covers any action mandated by one entity to be performed by another without compensation, funding or reimbursement. Politically, the term has been used as a pejorative against a government program, policy or expenditure that a political minority dislikes.

But, the general concept of "unfunded mandates" is not new and the phrase mis-characterizes common processes and requirements. The phrase is generally used only against those issue or policy areas a political minority dislikes.

Example (government): Safety standards for drugs, food, cars, toys, bridges, roads, etc. are technically "unfunded mandates" since they impose health, safety, performance and accessibility standards on manufacturers or service providers without compensation or reimbursement for implimentation.

Example (private sector): (i) Mortgage lenders impose requirements on home buyers mandating they obtain title insurance and property insurance for the duration of the loan without the financial institution paying for same; (ii) Insurance companies mandate safety equipment, procedures and practices on manufacturers (without the insurance companies paying for same) before the insurance companies will provide insurance coverage; (iii) employers mandate certain educational achievement levels or certifications without paying for same before employing a person.

Safe to say, "unfunded mandate" is another in a series of focus group-tested buzz phrases designed to agitate certain segments of the electorate over everyday occurrences or requirements that a certain political minority detests.