Types of Federalism
FEDERALISM
MARBLE CAKE
FEDERALISM or
COOPERATIVE
FEDERALISM
CREATIVE
FEDERALISM
COMPETITIVE
FEDERALISM or
NEW FEDERALISM
FISCAL
FEDERALISM
Types of Federalism
A governmental system in which the national government and the
regional (state) governments have power. In the US version of federalism,
some powers are shared or concurrent, some are exclusive to the
national government (enumerated or listed in the Constitution--Article I,
Section 8), and some are reserved to the states. In addition, some powers
are specifically denied either to the states or to the federal government.
This basic system is also known as Dual Federalism. Over time, the
balance of power between the national government and the states has
shifted; today the national government has much more power than it did
in the beginning. The question of how much power the central
government has is the central question in designing a federal system;
therefore the interpretation of the Elastic Clause (or Necessary and
Proper Clause)--Article I, Section 8—has been a key factor in determining
the nature of US federalism. This clause was interpreted in an expansive
way, increasing the power of the central government, in the case
McCulloch v. Maryland. The Tenth Amendment specifies that powers not
denied to the states or given to the national government are reserved to
the states, or the people
During the New Deal era the federal government started to become more
intrusive into what had previously been exclusively state matters, like
agriculture programs, bank regulation, and deposit insurance. Some of
these programs were initially declared unconstitutional until the Supreme
Court changed its mind (the "switch in time that saved nine" during the
time period when FDR was asking to change the rules or "pack the court"
by adding an additional justice for every justice over 70 who refused to
retire) and started to approve these new laws using the Interstate
Commerce Clause (Article I, Section 8) as justification.
The Great Society programs of President Lyndon Johnson created even
greater involvement of the federal government in previously statecontrolled matters, like welfare, medical care for the poor (Medicaid), and
civil rights legislation. These programs led to the states depending on the
federal government for funding to a much greater degree than before.
Programs like welfare (AFDC until 1996, then TANF) and Medicaid were
both administered and funded jointly by the states and the federal
government.
Under President Nixon, some Great Society programs were
decentralized, giving control back to the states. He called this New
Federalism. This trend was continued and expanded under President
Reagan.
Fiscal federalism refers to funding the states receive from the federal
government, in the following categories: categorical grants, block grants,
and revenue sharing. Categorical grants give money to the states for a
certain specific purpose, like putting more police officers on the streets.
Block grants give money to the states for a more general purpose, like
law enforcement. Revenue sharing gives money to the states with no
requirement as to how it will be spent. These were all reduced or
eliminated (revenue sharing) under presidents Reagan and George H. W.
Bush.