Federalism
Chapter Summary
I. Defining Federalism (66-70)
A. What Is Federalism?
Federalism is a way of organizing a nation so that two or more levels of
government have formal authority over the same area and people. Power is
shared between units of government. Most governments in the world, like
Great Britain, are unitary governments, in which all power resides in the
central government. The American states are unitary governments with
respect to their local governments. A confederation is a governmental
structure in which the national government is weak and most power is in the
hands of its components, or states. The term intergovernmental relations
refers to the interactions among national, state, and local governments.
B. Why Is Federalism So Important?
Federalism decentralizes our politics in many ways. For example, senators are
elected to represent their state, not the nation. With more levels of
government, more opportunities exist for political participation. Judicial power
also is enhanced by federalism. Federalism also decentralizes our policies.
The history of federalism demonstrates the tension between the states and
the national government over who should control policy. The overlapping
powers of the two levels of government mean that most debates over policy
become debates over federalism. States are responsible for most public
policies dealing with social, family, and moral issues. These become national
issues when brought to the national government by an aggrieved group. The
American states are also policy innovators, being responsible for many
reforms, new ideas, and new policies.
II. The Constitutional Basis of Federalism (70-76)
A. The Division of Power
The powers of state and national governments are carefully defined in the
Constitution. States are guaranteed equal representation in the Senate, are
responsible for elections, and cannot be abolished. The national government
must protect states from violence and invasion. The supremacy clause states
that the Constitution, laws of the national government, and treaties are the
supreme law of the land. However, the Tenth Amendment states “powers not
delegated to the United States by the Constitution, nor prohibited by it to the
states, are reserved to the states respectively, or to the people.” This
amendment has led to much controversy over the realm of the states’
powers. The Supreme Court has ruled that the Tenth Amendment did not give
states power superior to that of the national government for activities not
mentioned in the Constitution. The authority of the national government has
been challenged by the states. Federal courts can order states to obey the
Constitution or federal laws and treaties. The Eleventh Amendment prohibits
individual damage suits against state officials and protects state governments
from being sued against their consent by private parties in federal or state
courts.
B. Establishing National Supremacy
Four key events have largely settled the issue of how national and state
powers are related. In the Supreme Court case of McCulloch v. Maryland
(1819) Chief Justice John Marshall established two important constitutional
principles. The first was the supremacy of the national government over the
states, which suggests that federal laws preempt state laws and thus
preclude their enforcement. The second was the principle that the national
government has certain implied powers that go beyond enumerated powers.
The Constitution states that Congress has the power to “make all laws
necessary and proper for carrying into execution the foregoing powers.”
Today implied powers are often stretched to the limit, referring to the
necessary and proper clause as the elastic clause.
In Gibbons v. Ogden (1824) the Supreme Court increased the power of the
federal government to regulate interstate commerce by broadly defining
commerce to encompass virtually every form of commercial activity.
However, the Supreme Court’s interpretation of the federal government’s
power to regulate interstate commerce has fluctuated. In recent years the
Court has placed limitations on the national government’s commerce power.
The Civil War and the struggle for equality have also helped define the
powers of the national and state governments. The Civil War was essentially
a struggle between the power of the states and the power of the national
government. The struggle for equality pitted states’ rights against national
power. The conflict between states and the national government over equality
issues was decided in favor of the national government.
C. States’ Obligations to Each Other
The Constitution outlines certain obligations that each state has to every
other state. Article IV requires that states give full faith and credit to the
public acts, records, and civil judicial proceedings of every other state. This is
essential to the functioning of society and the economy. Usually full faith and
credit is not an issue, although the recent issue over same-sex marriages has
become controversial. Extradition is the constitutional requirement that states
return a person charged with a crime in another state to that state for trial or
imprisonment. The most complicated obligation among the states is the
requirement that citizens of each state receive all the privileges and
immunities of any other state in which they happen to be. There are many
exceptions to this obligation; however the more fundamental the right, the
less likely a state can discriminate against citizens of another state.
III. Intergovernmental Relations Today (77-84)
A. From Dual to Cooperative Federalism
In dual federalism both the national government and the states remain
supreme within their own spheres, each responsible for certain policies.
Mingled responsibilities and blurred distinctions between the levels of
government characterize cooperative federalism. Powers, policy, costs,
administration, and blame are shared between the national government and
the states. Before the national government began to assert its dominance
over state governments, the American federal system leaned toward dual
federalism. Gradually, the national role expanded until today the federal
government’s presence is felt almost everywhere. Cooperative federalism
rests on three standard operating procedures: shared costs, federal
guidelines, and shared administration. The cooperation between the national
and state governments is such an established feature that it persists even
when the two levels of government are in conflict on certain matters. Most
Americans see the national government as more capable of handling some
issues and the state and local governments as better at others. The
Republican majority that captured Congress in 1995 passed bills to give the
states more authority over social and environmental programs once seen as
the realm of the national government. However, Republicans also found the
federal government was the most effective way to achieve many of their
policy objectives.
B. Fiscal Federalism
Fiscal federalism is the pattern of spending, taxing, and providing grants in
the federal system. There are two major types of federal aid to the states.
Categorical grants are the main source of federal aid. They can be used only
for one of several hundred specific purposes. Categorical grants often have
strings attached, such as a nondiscrimination provision. The federal
government may employ cross-over sanctions to use federal dollars in one
program to influence state and local policy in another. Cross-cutting
requirements occur when a condition on one federal grant is extended to all
activities supported by federal funds regardless of their source. There are two
types of categorical grants. Project grants are awarded on the basis of
competitive applications. Formula grants are distributed according to a
formula, often based on population, income, percentage of rural population,
or other factors. The second major type of federal aid to the states is block
grants, which are given more or less automatically to states or communities,
which then have discretion in deciding how to spend the money. Block grants
are now on the increase.
A general rule of federalism is that the more money there is at stake, the
more fervently people will argue about its distribution. Consequently, states
and localities often act as interest groups, competing with each other for
federal dollars. On the whole, however, federal grant distribution tends to
follow the principle of universalism, something for everybody.
Sometimes federal aid puts an unwanted burden on state governments. Most
federal grants require the states to pay for a percentage of the costs; thus
they have to budget funds for the project just to receive federal grant money.
Requirements that direct states or local governments to comply with federal
rules under threat of penalties or as a condition of receipt of a federal grant
are called mandates. Unfunded mandates occur when Congress passes a law
creating financial obligations for the states but provides no funds to meet
these obligations. The Republican Congress has tried to limit the use of
unfunded mandates, but federal courts and regulatory rules continue to
impose financial burdens on the states.
IV. Understanding Federalism (84-90)
A. Federalism and Democracy
The founders established a federal system in part to allay the fears of those
who believed that a powerful and distant central government would tyrannize
the states and limit their voice in government. Federalism has many
advantages for democracy. It creates more opportunities for participation in
politics. It increases access to government. Citizens and interest groups have
more places to bring their grievances. Federalism allows the diversity of
opinion within the country to be reflected in different public policies among
the states. By handling most disputes over policy at the state and local level,
federalism also reduces decision-making and conflict at the national level.
Federalism can also have disadvantages for democracy. States differ in the
resources they can devote to services; thus, quality of services can vary
widely between the states. Diversity in policy can also discourage states from
providing services that would otherwise be available. Federalism may also
have a negative effect on democracy insofar as local interests are able to
thwart national majority support of certain policies, as occurred with civil
rights policies. Finally, the sheer number of governments in the United States
can be a burden to democracy.
B. Federalism and the Growth of the National Government
Throughout our history the national government has responded to needs and
problems with new public policies, especially in the area of the economy.
Relevant interests tend to turn to the national government for help. The
states usually do not have the authority and resources to deal with most
problems. Although it is constitutionally permissible for the states to handle a
wide range of issues (except defense policy) it is usually not a sensible
alternative. It would not be logical for the states, for example, to have their
own space program, energy policy, retirement program, etc. Accordingly, the
national government’s share of American governmental expenditures has
grown rapidly since 1929. Although states have not been supplanted by the
national government, the national government has taken on many new
responsibilities.