S. 1518 would preempt state laws that establish standards under which a “Made in America” or “Made in the U.S.A.” label may be affixed to a product. The bill would reiterate that the Federal Trade Commission (FTC) is solely responsible for developing and enforcing those standards.
Based on information from the FTC, CBO expects that implementing S. 1518 would not affect the workload or enforcement activities of the agency, and therefore, would have no effect on the federal budget.
Enacting S. 1518 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting S. 1518 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026.
By preempting state laws, S. 1518 would impose an intergovernmental mandate as defined in the Unfunded Mandates Reform Act (UMRA). At least one state, California, currently has a law setting its own standards for such labels. S. 1518 would preempt that law. The costs, if any, to the state of complying with the mandate would not exceed the annual threshold established in UMRA ($154 million in 2016, adjusted annually for inflation.)
S. 1518 contains no private-sector mandates as defined in UMRA.