Fundamental Principle #2 - Federalism (or the Federal System)
Federalism divides the powers of government between the national government (also
called the federal government) and the state governments. It is based on the idea that states have
the right to govern their own citizens, and that the federal (national government) should have
only limited powers over the citizens of each state. Federalism was a unique creation of the
American founding fathers, and was based on the fact that the original thirteen state governments
existed before the U.S. Constitution. Most citizens’ first loyalty was to their state government.
Therefore, the states were hesitant to give a lot of power up to the new national government. The
constitution clearly spells out the things that the federal government is allowed to do, and the
things that the state governments cannot do. The 10th Amendment clearly states that any power
not specifically granted to the federal government remains with the states or with the people.
In our country’s early days, the federal government had much less power than it does
today. Over the years, the federal government’s power has grown stronger compared to the
power of the state governments, but still today, most laws that affect your daily life are state and
local laws (local governments receive their authority from the state government and must follow
their state’s constitution).
Things that only the federal government can do are called delegated powers because they
were delegated, or given, to the new federal government. Things that only the state governments
can do are called reserved powers because they were reserved, or kept, by the states. In addition
to these powers, both the federal government and state governments share some powers. Powers
shared by the federal government and the state governments are called concurrent powers.
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Federal Government
(Delegated Powers)
Print money
Regulate trade and
business between
different states and with
other countries
Make treaties and deal
with other countries
Declare war
Provide an army and
navy
Establish post offices
Shared Powers
(Concurrent Powers)
* Collect taxes
* Build roads
* Borrow money
* Establish courts
* Make and enforce laws
* Spend money for the public
good
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State Governments
(Reserved Powers)
Issue licenses
Regulate trade and
business within the state
Conduct elections
Establish local
governments
Any other power not
specifically granted to the
federal government.
Federalism Review Questions
1. What is federalism?
2. According to this reading, why did the founding fathers create the federal system
– why didn’t they just create one national government that would be able to do everything?
3. Define: reserved powers, concurrent powers, delegated powers.
4. Why do you think some people insisted on having the 10th Amendment added to
the Constitution?
5. How has the balance of power between state governments and the federal
government changed over our history?