Congressional Budget Office Estimates for ADS for Mental Health Services Act and Related Legislation

Strategic Insights -

The Congressional Budget Office (CBO) has released a cost estimate for the ADS for Mental Health Services Act (S. 414), as well as two other bills, S. 289 and S. 389. These bills were reported on June 24, 2025, by the Senate Committee on Commerce, Science, and Transportation. The CBO estimates the costs of the legislation, which falls within budget functions 370 (commerce and housing credit) and 550 (health).

Key Takeaways:

  • S. 414, the ADS for Mental Health Services Act, would require digital advertising platforms to report annually to the Federal Trade Commission (FTC) about advertising on their platforms for certain mental health services. CBO estimates that enacting S. 414 would cost less than $500,000 over the 2025-2030 period.
  • S. 289, the Youth Poisoning Protection Act, would ban the sale of products containing 10 percent or more by weight of sodium nitrite covered under the Consumer Product Safety Act. CBO estimates that implementing S. 289 would cost $2 million over the 2025-2030 period.
  • S. 389, the Setting Consumer Standards for Lithium-Ion Batteries Act, would require the Consumer Product Safety Commission to adopt certain voluntary safety standards for rechargeable lithium-ion batteries used in electric bicycles, scooters, and other micromobility devices. CBO estimates that implementing S. 389 would cost $8 million over the 2025-2030 period.
  • All three bills would impose private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). However, the costs of the mandates would not exceed the private-sector threshold established in UMRA ($206 million in 2025, adjusted annually for inflation).
  • The legislation would create new reporting requirements for digital advertising platforms and the Federal Trade Commission, highlighting the importance of mental health advertising transparency.
  • The estimates do not include any effects of interactions among the bills, and the CBO expects any differences to be small if the bills were combined and enacted as a single piece of legislation.

Statistics:

  • Estimated federal cost of S. 414: less than $500,000 over 2025-2030 period
  • Estimated federal cost of S. 289: $2 million over 2025-2030 period
  • Estimated federal cost of S. 389: $8 million over 2025-2030 period
  • Private-sector threshold established in UMRA: $206 million in 2025, adjusted annually for inflation
  • Scope of digital advertising platforms affected by S. 414: includes social media platforms, public-facing websites, online services, and mobile applications with more than 100 million unique monthly users

Sources:

  • Congressional Budget Office, "Cost Estimate for the ADS for Mental Health Services Act (S. 414)" (July 2025)
  • Congressional Budget Office, "Cost Estimate for the Youth Poisoning Protection Act (S. 289)" (July 2025)
  • Congressional Budget Office, "Cost Estimate for the Setting Consumer Standards for Lithium-Ion Batteries Act (S. 389)" (July 2025)
  • Unfunded Mandates Reform Act (UMRA) of 1995