What makes a federal mandate an "unfunded" mandate?

1. Unfunded mandates are federal laws and regulations that impose obligations on state and local governments. 2. What makes them unfunded is that the federal government does not fully compensate the administrative costs the states incur. 3. Mandates carry the threat of penalties, so they work as a stick where grants work as a carrot. 4. A transfer of money with no duties attached describes a grant, the reverse of a mandate. 5. States pushed back with the Unfunded Mandates Reform Act of 1995, though it brought them limited relief. _Source: OpenStax American Government 3e (CC BY 4.0), Ch 3 "American Federalism", section 3.3 Intergovernmental Relationships_