I. Federalism
Federalism
A. What is Federalism
[This word is not in the
constitution]?
B. Why Is Federalism So
Important?
C. Dual Federalism
a. The Framers sought to create a central government strong enough to meet the
nation’s needs and still preserve the strength of the States.
b. The National Government has only those powers delegated to it by the
constitution.
c. The States are governments of reserved powers-powers that the Constitution
does not grant to the national Government.
d. Most of the powers of the National Government are exercised by the National
Government alone.
e. The concurrent powers are possessed by both the National Government and the
States.
f. The Constitution stands above all other forms of law in the United States.
Federalism: a way of organizing a nation so that two or more levels of government
have formal authority over the land & people.
1. Decentralizes our politics
 More opportunities to participate
2. Decentralizes our policies
 Federal and state governments handle different problems.
 States regulate drinking ages, marriage, and speed limits.
 States can solve the same problem in different ways and tend to be policy
innovators.
D. The Division of
Powers
a system of government in which both the states and the national government
remain supreme within their own spheres, each responsible for some policies. It
is like a layer cake and ended in the 1930s.
Delegated Powers
E. The powers that
are delegated and
denied to the National
Government.
F. The powers are
delegated and are
denied to the States.
G. McCulloch v.
Maryland (1819) and
Implied Powers
coin money
regulate interstate and foreign trade
declare war
govern U.S. territories and admit new
states
conduct foreign relations
Delegated Powers
regulate trade and business within the
State
establish public schools
pass license requirements for
professionals
regulate alcoholic beverages
conduct elections
establish local governments
Denied powers
regulate trade and business within the
State
establish public schools
pass license requirements for
professionals
regulate alcoholic beverages
conduct elections
establish local governments
Denied powers
coin money
regulate interstate and foreign trade
declare war
govern U.S. territories and admit new
states
conduct foreign relations
Background of the case
 Congress chartered the second National Bank of the United States in 1816.
 In 1818, the Maryland legislature passed a law imposing a substantial tax on
the operation of the Baltimore branch of the bank.
 James McCulloch, cashier of the Baltimore branch, refused to pay the tax.
 When the Maryland state courts ruled against him, McCulloch appealed to
the United States Supreme Court.
2. Constitutional questions
 Does the Constitution permit Congress to charter a bank?
 Does a state have a constitutional right to tax an agency of the United States
Government?
3. The Courts Decision
 Led by Chief Justice John Marshall, the Supreme Court ruled that creating a
national bank was within the implied powers of Congress. Marshall
acknowledged that the word bank is not in the Constitution. However, the
Constitution does specifically grant Congress the power to impose taxes,
issue a currency, and borrow money. Although the Constitution does not
specifically enumerate creating a bank, it does grant Congress the power to
“make all laws necessary and proper for carrying into execution the
foregoing powers.” Congress may thus reasonably decide that chartering a
national bank is a ”necessary and proper” way to carry out its expressed
powers.
 The Court also held that Maryland law was unconstitutional because it
violated the principle of the supremacy of the national government over the
states. Marshall ruled that “the government of the United States, though
limited in its power, is supreme within its sphere of action.”
4. Significance
 McCulloch v. Maryland confirmed the right of Congress to utilize implied
powers to carry out its expressed powers. Federal programs to build
interstate highways, regulate labor-management relations, and inspect food
and drugs are all justified as implied powers of Congress.
 The decision validated the supremacy of the national government over the
states by declaring that states cannot interfere with or tax the legitimate
activities of the federal government.
H. Gibbons v.
Ogden(1824) and the
Commerce Clause
1. Background of the case
 The New York legislature granted Aaron Ogden an “exclusive license” to
run a ferry service on the Hudson River between New York and New Jersey.
 Thomas Gibbons obtained a license from the federal government to operate
a competing New York-New jersey ferry service.
 Ogden claimed that Gibbons infringed on the monopoly rights granted to
him by the New York legislature
 When the New York courts ruled against him, Gibbons appealed to the
United States Supreme Court.
2. Constitutional Questions
 Did New York law violate the Constitution by attempting to regulate
interstate commerce?
 Does Congress have the exclusive right to regulate interstate commerce
3. The Courts Decision
 Led by Chief Justice John Marshall, the Supreme Court defined commerce
as all commercial business dealings. Commerce thus includes the
production, buying, selling, renting and transporting of goods, services and
properties.
 Because Congress regulates all interstate commerce, the Court upheld
Gibbons’ right to operate a ferry service in competition with Ogden.
4. Significance
 Marshall’s broad definition of commerce enabled Congress to promote
economic growth by supporting the construction of roads, canals and
railroad lines.
Vocabulary
1. federalism- a system of government in which a written constitution divides the
powers of a government between national, states and local governments
2. division of powers- the division of powers between the national government and
the states
3. delegated powers- the national government only has those powers granted to it
it in the constitution.
4. expressed powers- Those delegated powers of the National Government that are
given to it in so many words by the United States Constitution; also sometimes
called the "enumerated powers."
5. implied powers- Powers not explicitly stated in the Constitution but which are
suggested or implied by the "general welfare," "necessary & proper," and
commerce clauses in the Constitution.
6. inherent powers- Those delegated powers of the National Government that
belong to it simply because it is the national government of a sovereign state.
7. reserved powers- Powers retained by the states, as dictated by the 10th
Amendment.
8. exclusive powers- powers that are exercised by the National Government alone
9. concurrent powers- powers that both the National Government and the States
possess.
II. The National
Government and
the 50 States
A. Layer Cake Federalism
a. The National Government guarantees the States a representative form of
government, protection against
invasion and internal disorder, and respect for their territorial integrity.
b. Congress has the power to admit new states.
c. The American federal system involves a broad range of powers shared between
the National Government and
the States.
– after Civil War, this was an extension of Dual Federalism. Here, the national
government exercised its power independently from State governments.
Reconstruction dictated this approach.
B. Marble Cake
Federalism
- 1932-1960s. This was a cooperative federalism that developed during the New
Deal and until the Great Society. It resulted in greater growth of the federal
government. The federal government becomes more intrusive in State
government affairs. Public policy became more of a sharing between the two,
with the national government providing the money and the State governments
administering the programs.
Vocabulary
1. enabling act- an act directing the people of a territory to frame a proposed State
constitution
2. act of admission- an act creating a new state
3. revenue sharing- Active during the years 1972 to 1987 where Congress gave an
annual share of the huge federal tax revenue to the States and local governments
with almost no strings attached; only where discrimination based on race, sex,
national origin, age, religious beliefs or physical disability was evident
4. categorical grant- grant for a specific purpose. school lunches, roads, airports .
Made with strings attached…must pitch in, must go to that purpose only, provide
an agency to administer, set guidelines
5. block grant- broad use for purposes like health care, social services or welfare.
few strings attached. States and local government have greater freedom of where
and how the money is allocated.
6. project grant- grants made to states and local governments and sometimes
private agencies that apply for them
III. Interstates
Relations
a. The States can make interstate compacts that enable them to cooperate on
matters of mutual concern.
b. The Constitution requires each State to respect the laws, official records, and
court actions of other States.
c. The Constitution requires each State to return fugitives to the State from which
they fled.
d. No State can draw unreasonable distinctions between its own residents and
residents of other States.
Vocabulary
1. Interstate compact- an agreement between two or more states
2. Full Faith and Credit Clause- A clause in Article IV of the Constitution which
requires that each state respect the laws, records and court decisions of another
state. In practice, this means that a judgment obtained in a state court in a civil
(non-criminal) case must be recognized by the courts of another state.
3. extradition- the legal process by which a fugitive from justice in one state must
be returned to the state where the crime was committed
4. Privileges and Immunities Clause – means that no state can draw unreasonable
distinctions between its own residents and those persons who happen to live in
other states