Chapter Three
Federalism
Chapter Objectives
• Explain the difference between federal and centralized
systems of government, and give examples of each.
• Show how competing political interests at the
Constitutional Convention led to the adoption of a
federal system that was not clearly defined.
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interests
• Outline the ways in which national and state powers
have been interpreted by the courts.
– McCullough v. Maryland, Wicker v. Fillburn,
Concept of selective incorporation
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• Why have federal grants-in-aid to the states been
politically popular? What have proven to be their
pitfalls?
• Distinguish between categorical grants and block
grants.
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• To what extent have federal grants to the states created
• Distinguish between mandates and conditions of aid
with respect to federal grant programs to states and
localities.
uniform national policies comparable to those of
centralized governments.
• The “devolution revolution.” What are the
implications for citizens as taxpayers and as clients of
government programs?
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Governmental Structure
• Federalism: a political system where local
government
unitsi can
make
final
decisions
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• are
Unitary
System:
are
subservient to the national government
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Figure 3.1: Lines of Power in Three
Systems of Government
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Figure 3.1: Lines of Power in Three
Systems of Government
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Figure 3.1: Lines of Power in Three
Systems of Government
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Positives and Negatives of Federalism
• Negative view: Federalism blocks progress and
protects powerful local interests
• Positive view: Federalism contributes to
governmental strength, political flexibility, and
fosters individual liberty
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– Federalist #10: small political units allow all
relevant interests to be heard
– Federalism increases political activity
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THEME A: WHO GOVERNS WHAT?
FEDERALISM AND CONSTITUTIONAL LAW
Federalism: A Bold New Plan
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• No historical precedent
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• Tenth Amendment was added as an
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afterthought
of the
national government’s power
• Elastic language in Article I: Necessary and
Proper Clause expands federal power
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McCulloch v. Maryland
• Could Congress charter a national bank?
– Yes, even though this power is not explicitly in the
Constitution
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• Could
states tax the national bank?
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– No, because “the power to tax is the power to destroy”
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NATIONAL SUPREMACY (states can’t interfere with
• IMPLIED POWERS (Whatever is “necessary and proper”)
constitutional activities of federal gov’t)
• Nullification
– Does the federal gov’t have the right to declare state laws
unconstitutional? Yes. (14th Amendment)
– Settled by the Civil War.
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Wicker v. Filburn
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Federalism Over Time
• Dual federalism: Both national and state
governments are supreme in their own spheres,
which should be kept separate
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• Hard to make distinctions between state and
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– Particular state issues: law enforcement and education
• But Supreme Court has strengthened states’
rights in several recent cases
– US v Lopez--guns in schools
– US v Morrison--Violence Against Women Act
– Printz v. US--background checks on gun purchasers
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THEME A: DISCUSSION QUESTIONS
• Historically power has flowed to the central
government. What reasons exist for the states to
continue exercising independent power? Given
the Supreme Court’s decision in McCulloch, what
prevents the central government from assuming
legal authority over any area of public policy?
• Why doesn’t the federal government always
intervene when states defy its authority?
• Certain areas in Nevada permit prostitution, nine
states have legalized the use of marijuana for
“medical purposes”; Massachusetts has legalized
same-sex marriage. Could the federal
government legally intervene to forbid such
practices in these states? Explain why or why
not?
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WHO GOVERNS NOW?
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THE CONTEMPORARY POLITICS
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OF FEDERALISM
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Grants in Aid: “Fiscal” Federalism
• Dramatically increased in scope in 20th
century (especially 1960s)
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– Grants were a way for federal government to
circumvent strict constructionist reading of
federal power.
– Grants were attractive to state officials for
various reasons
– Required broad congressional coalitions with
wide dispersion of funds, because every state
had incentive to seek grant money
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Categorical Grants v. Revenue Sharing
• Categorical grants for specific purposes defined
by federal law; often require local matching funds
• Block grants (sometimes called special revenue
sharing or broad-based aid) devoted to general
purposes with few restrictions—states preferred
block to categorical grants
• Revenue sharing (sometimes called general
revenue sharing) requires no matching funds and
can be spent on almost any governmental
purpose
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Figure 3.2:
The Changing
Purpose of
Federal
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Local
Governments
Why the
change?
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Budget of the U.S. Government, Fiscal Year 2005, table 12.2.
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Figure 3.3: Federal Grants to State and Local Governments,
1984-2004
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Budget of the U.S. Government, Fiscal Year 2002, Historical Tables, table 6.1, and Budget of the U.S.
Government, Fiscal Year 2005, table 12.1.
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Categorical Grants
• Given by gov’t for specific purposes
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• Examples:
Medicaid, AFDC
(welfare)
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• “Cross-over sanctions”
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– Federal highway funds
– Often require matching funds
• “Cross-cutting requirements
– Must extend to all federally-funded activities
• States complain about restrictions
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Block Grants
• “New Federalism” (Reagan)
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money is used
• Can be victims of “creeping categorization”
• Example: shift from AFDC to TANF
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Federal Aid and Federal Control
• Conditions of aid: rules that state what
governments must do if they wish to
receive grant
money
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• Mandates:
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that states or
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needed
to see
thi aid
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nothing
to do with
federal
– Civil rights
– Environmental protection
– Example: Americans with Disabilities Act
(1990) (an “unfunded” mandate)
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The Devolution Revolution
• Devolution initiatives returned program
management
to the
states,and
withasome
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• Block grants fund entitlements
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The Devolution Revolution
• Devolution proponents harbor a deep-seated
ideological mistrust of federal government and
believe that state governments are more
responsive to the people
• Deficit politics encouraged devolution
• Devolution is supported by public opinion, but the
strength of that support is uncertain
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– Case Study: AFDC to TANF (Welfare)
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Regulated Federalism
• Instituted by Bush Administration
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• are
Prescription
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benefits
for Medicare
bloated
– “No Child Left Behind” (NCLB)
costs
• Return to Federal control caused by 9/11 and
Hurricane Katrina as well
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Congress and Federalism: Will we
become a completely centralized nation?
• Members of Congress represent conflicting
constituencies
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• The
erosion of parties and
“linkage
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increases
political
competition
are needed to see thi s pi cture.
• Americans differ in the extent to which we
like federal versus local decisions
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THEME B: DISCUSSION QUESTIONS
• Does the system of grant-in-aid upset the balance of federalism? Do
grant programs enable Congress to do what it pleases by bribing
states into compliance? Or do these programs merely increase the
likelihood of national policy uniformity? What would be the
consequence if a state refused federal grant money?
• To what extent have interest groups produced grants-in-aid, and to
what extent have grants-in-aid produced interest groups? Who
constitutes a governmental lobby?
• How and why do conservatives and liberals differ over giving aid to
the states without conditions?
• Why can’t federal agencies attack complex problems by producing
and implementing a coherent systematic policy? Why don’t (can’t)
federal bureaucrats issue orders where necessary?
• Does the recent push toward devolution give states too much power?
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Issues connected to federalism
• Gay Marriage
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• Medicinal
Marijuana
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• Civil
Rights
needed to see thi s pi cture.
• are
Education
• Bush v. Gore
• Electoral College
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