Chapter 3- Federalism
I. Defining Federalism
A. What is Federalism?
-two or more levels of govt have formal authority over the same land and people
-most govts today are unitary (all power in central govt)
-Am states are unitary govts w respect to local govts
-Confederation- nat govt weak; states have most or all of power; rare except in international
organizations like United Nations
-intergovernmental relations- workings of fed system- entire set of interactions among nat,
state, and local govts
B. Why is Federalism So Important?
-decentralizes our politics; more opportunity for political participation and points of access
-enhances judicial power (resolve disputes bt two levels of govt)
-decentralizes our policies; public policy debates about who controls it
-states responsible for policies dealing with social, family, and moral issues
Why Federalism?
-large in size, population, and minority ethnic groups; democracies
Candy Lightner
-Congress would withhold 10% of all federal highway aid from states that didn’t raise drinking
age to 21 by 1988
II. The Constitutional Basis of Federalism
-had to create fed system in 1787; only practical choice
A. The Division of Power
-Supreme Law of Land: Constitution, laws of national govt, and treaties
-Tenth amendment said powers not delegated to US reserved to states or people, but US v. Darby
said it meant the states have independent powers of their own, not that their powers are superior
to those of the national govt
-Nat League of Cities v. Usery- SC held that extending national min-wage and max-hours
standards to employees of state and local govts was unconst intrusion of nat govt into domain of
states; Garcia v. San Antonio Metro- SC overturned this decision and held that it was up to
Congress, not the courts, to decide which actions of states should be regulated by nat govt
-states challenge authority of national govt
-federal courts can order states to obey Const or federal laws and treaties
B. Establishing National Supremacy
-4 events settled issue of how national and state powers are related: elaboration of doctrine of
implied powers, def of commerce clause, Civil War, and struggle for racial equality
a. Implied Powers
-McCulloch v. Maryland- established supremacy of nat govt over state govts; Maryland taxed
Second Bank’s Baltimore branch, and Marshall ruled in favor of Bank (Webster defended bank;
Martin defended MD); said Cong had implied powers in addition to enumerated powers (elastic
clause)
b. Commerce Power
-Gibbons v. Ogden- SC gave Cong power to regulate interstate commerce (broad activity); Cong
later tried to use these powers to regulate commerce eco instead of promote it; SC said it was
unconstitutional
-many New Deal plans voided by by SC
c. The Civil War
-nat govt asserted its power over Southern states’ claim of sovereignty
d. The Struggle for Racial Equality
-Brown v. Board of Education, SC held that school segregation was unconst; federal govt
enacted laws to end segregation in the 1960s; national standards of racial equality prevailed
C. States’ Obligations to Each Other
a. Full Faith and Credit
-clause requiring each state recognize official documents of other states
b. Extradition
-criminal surrendered by one state to the one in which crime was committed
c. Privileges and Immunities
-states can’t discriminate against citizens of other states
III. Intergovernmental Relations Today
A. From Dual to Cooperative Federalism
-Dual Federalism- states and nat govt remain supreme within their own spheres, each responsible
for some policies; powers of national govt interpreted narrowly
-Cooperative Federalism- powers shared bt states and nat govt
-US never completely dual; edu was supposed to be for the states, but Cong set aside land in NW
Terr for schools, passed National Defense Edu Act providing grants and loans for college
students (response to Soviet success in space race) and Elementary and Secondary Edu Act,
providing aid to numerous schools
-today, all school districts receive some federal assistance
-Highways= cooperative fed; earlier, states and cities responsible for building roads; interstate
highway program is a joint fed-state program
-Coop fed today involves
-Shared costs
-Federal guidelines (strings attached)
-Shared administration
-Reagan moved toward dual federalism, but most Am’s more practical about it
-Republican majority in 1995 gave states authority over social and environ programs, but also
found fed govt most effective way to achieve many policy objectives
B. Fiscal Federalism
-pattern of spending, taxing, and providing grants in fed system; cornerstone of nat govt’s
relations with state and local
a. The Grant System: Distributing the Federal Pie
-Catalogue of Fed Domestic Assistance
-two types of aid: Categorical and Block
1. Categorical grants- only used for specific purposes of state and local
spending; strings attached, like nondiscrimination
-cross-over sanctions- use fed dollars to influence policy in another
program
-cross-cutting requirements- condition on one fed grant extended to all
activities supported by federal funds
-most common type is project grant, awarded on basis of competitive
applications
-formula grants distributed according to formula specified in legislation
2. Block grants-given automatically to support broad programs like comm
development and social services; states have discretion in deciding how to
spend
b. The Scramble for Federal Dollars
-Senators and reps go to voters w stories of influence in securing fed funds; many Wash orgs that
lobby Cong (act like other interest groups)
-fed grant distribution= universalism: something for everybody
-Clinton tried to concentrate Chapter 1 funds on poor students; didn’t work; (1965 Elementary
and Secondary Education Act)
c. The Mandate Blues
-mandates- requirements for state or local govts to comply w fed rules under threat of penalty
-^ fed spending for Medicaid meant ^ spending for states too; 49 of 50 governors called for 2-yr
suspension on mandated expansions of Medicaid
-prob when Cong passes law creating financial obligations but provides no funds to meet them
-Clinton signed law that limits underfunded mandates on state and local govts
-federal courts also create unfunded mandates for states
-combo of fed regulations and inadequate resources is bad; intended to help poor by ensuring
stable supply of housing, but hurt bc discouraged local govts from demolishing inadequate
housing bc had to build new one for every one it ruined
-fed govt unintentionally creates financial obligations for states; states sued for reimbursement
for public services that states provided to illegal residents; lost the case
IV. Understanding Federalism
A. Federalism and Democracy
a. Advantages for Democracy
-additional levels of govt increase access to govt
-federalism allows eco interest concentrated in state to influence election of state’s officials
-losing election more acceptable and peaceful transfer of power bc can go to state govt
-diversity of opinion reflected in states’ public policies bc fed gives state responsibilities
disputes over policy at state and local level, so less conflict at national level
b. Disadvantages for Democracy
-quality of edu depends on state
-states discouraged from providing welfare benefits bc attract poor people from states with lower
benefits
-local interests can thwart national majority support of certain policies (civil rights)
-87504 American governments; too many?
B. Federalism and the Scope of the National Government
-w industrialization, many interests ask nat govt to restrain monopolies and encourage open
competition bc large corporations have potential to abuse by monopoly pricing
-urbanization brought probs in housing, welfare, environ, and transport; turned to nat govt, not
states
-many responsibilities are better left w nat govt; space program, nation’s money supply, eco
security (Social Security)
-states have not been supplanted by nat govt; nat govt has taken on new responsibilities
Summary
-M v. M, G v. O, Civil War, and struggle for racial equality all helped determine national
supremacy
-fed govt uses fiscal leverage to influence state and local policies