Mr. Tuccillo
Chapter 3
AP Government
Federalism
Objective(s):
1. Students will be able to describe the three basic forms of governmental structures:
federalism, unitary, and confederacy.
2. Students will be able to explain why the relationship of local governments to the states
is considered to be a unitary arrangement.
3. Students will be able to determine the significance of how the American federal
system decentralizes our politics.
4. Students will be able to identify the ways in which the Constitution determines the
powers of state and national governments.
5. Students will be able to evaluate how contrasting interpretations of the supremacy
clause and the Tenth Amendment lead to divergent views of the scope of state and
national powers.
6. Students will be able to determine how the policy of national supremacy has
developed through Supreme Court decisions.
7. Students will be able to describe how the Supreme Court set forth the principle of
implied powers in the McCulloch v. Maryland case.
8. Students will be able to understand the relationship of implied powers to enumerated
powers.
9. Students will be able to describe how the Civil War and the civil rights movement
contributed to the development of national supremacy over the states.
10. Students will be able to list and analyze the clauses in the Constitution that define the
obligations that each state has to every other state.
11. Students will be able to trace the ways in which American federalism has changed
over the past two centuries.
12. Students will be able to compare the contrasting forms of dual federalism and
cooperative federalism.
13. Students will be able to describe what is meant by fiscal federalism and assess the
role that federal money plays in state policies.
14. Students will be able to summarize the characteristics of categorical grants and block
grants, and examine the effects they have on decision making at the state and local levels.
15. Students will be able to discuss how underfunded and unfunded mandates burden
state governments.
16. Students will be able to analyze the ways in which American federalism has a
positive effect on democracy.
17. Students will be able to analyze the ways in which American federalism has a
negative effect on democracy.
I. Defining Federalism
A. What is Federalism?
1. Federalism: a way of organizing a nation so that two levels of
government have formal authority over the same land and people
a. it is a system of shared powers between units of government
2. only 11 out of the approximately 190 countries of the world have
federal systems
a. Germany, Mexico, Argentina, Canada, Australia, India
3. most governments in the world today are unitary governments
a. Unitary Government: a way of organizing a nation so that all
power resides in the central government
1. Great Britain, Japan
b. American states are unitary governments with respect to their
local governments
1. local governments get their authority from the states and
can be created or abolished by the states
2. states can also make the rules for local governments
4. Confederation: the national government is weak and most or all of the
power is in the hands of its components (for ex. individual states)
a. the U.S. under the Articles of Confederation, the United Nations
5. the workings of the American system are sometimes called
intergovernmental relations
a. Intergovernmental Relations: the entire set of interactions
among the national, state, and local governments
B. Why is Federalism So Important?
1. the federal system decentralizes our politics
a. with more layers of government, more opportunities exist for
political participation, and there are more opportunities for
interests to have their demands for public policies satisfied
b. with more decisions made in the states there are fewer sources
of conflict at the national level
2. federalism enhances judicial power, because the courts resolve all the
disputes that arise
3. the federal system decentralizes our policies
a. questions arise as to who controls policy making
b. states are responsible for most public policies dealing with
social, family, and moral issues
1. these become national issues when someone brings a
case to the federal government in an attempt to influence
the states
c. the states serve as public policy laboratories, trying new policies
out and sharing results with other states and the national
government
d. almost every policy of the national government has adopted its
beginnings from the states
II. The Constitutional Basis of Federalism
A. The word federalism is not mentioned in the Constitution
B. Eighteenth-century Americans had little experience in thinking of themselves
as Americans first and state citizens second (strong state loyalty)
C. The Division of Power
1. the writers of the Constitution carefully defined the powers of state and
national governments
2. the writers favored a stronger national government, but states were
restrained as vital components of government
a. states were given equal representation in the Senate, right to
control elections, and right not to be divided into new states
3. Supremacy Clause: Article VI of the Constitution makes the
Constitution, national laws, and treaties supreme over state laws when the
national government is acting within its constitutional limits
4. Judges in every state were bound to follow the Constitution
5. questions remain concerning the boundaries of the national
government’s powers
a. the national government can only operate within its appropriate
sphere and cannot usurp the states’ powers
b. Tenth Amendment: “the 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”
c. there have been variations in the Court's interpretation of the
Tenth Amendment
1. United States v. Darby, 1941: 10th Amendment does not
mean that state powers are superior to those of the national
government
2. National League of Cities v. Usery, 1976: Court said
that minimum wage laws and maximum-hour standards
was an intrusion into the states domain
3. Garcia v. San Antonio Metro, 1985: Courts reversed
National League decision
a. it was Congress's job to decide what was
necessary to be regulated
4. Printz v. United States and Mack v. United States
(1997): Courts voided the congressional mandates of the
Brady Bill saying you cannot force states to address
particular problems and the national government cannot
force states law officials to enforce a federal program
6. Federal Courts can order states to obey the Constitution or federal laws
and treaties
D. Establishing National Supremacy
1. four key events have largely settled the issue of how national and state
powers are related:
2. the first is the elaboration of the doctrine of implied powers
a. McCulloch v. Maryland, 1819: the case that first brought the
issue of state versus national power before the Supreme Court
1. in this case (dealing with the idea of a national bank),
the Supreme Court ruled that national policies take
precedence over state policies: Chief Justice John Marshall
wrote that "the government of the United States, though
limited in its power, is supreme within its sphere of action"
2. elastic clause or implied powers: the national
government has certain powers beyond their enumerated
ones
3. Enumerated Powers: powers of the federal
government that are specifically addressed in the
Constitution - Article 1, Section 8
4. Implied Powers: powers of the federal government that
go beyond those enumerated in the Constitution - Congress
has the power to "make all laws that are necessary and
proper for carrying into execution" the enumerated powers
a. Elastic Clause: the final paragraph of Article 1,
Section 8 of the Constitution (ex. policies to
regulate food and drugs, build interstate highways,
clean up dirty air and water)
3. the second is the definition of the commerce clause
a. Gibbons v. Ogden, 1824: Supreme Court interpreted very
broadly the clause in Article 1, Section 8, of the Constitution
giving Congress the power to regulate interstate commerce,
encompassing virtually every form of commercial activity
1. today that includes: movement of goods, radio signals,
electricity, telephone messages, the Internet, insurance
transactions, and much more including the prohibition of
racial discrimination in public places
b. Seminole Tribe v. Florida, 1996: the Supreme Court limited
commerce power by declaring that the 11th Amendment limited
suits to enforce rights granted by Congress under the Commerce
Clause
4. the third is the Civil War
a. the War settled militarily the issue that McCulloch had
enunciated constitutionally
b. a war fought over state power v. national power
5. the fourth is the struggle for racial equality
a. Brown v. Board of Education, 1954: Supreme Court held that
school segregation was unconstitutional
b. southern politicians responded with "massive resistance" to the
decision
c. Governor George Wallace of Alabama blocked the entrance of
the school in an attempt to keep out black students
d. the conflict between the states and national government over
equality issues was decided in favor of the national government
E. States' Obligations to Each Other
1. Full Faith and Credit - A clause in Article IV, Section 1, of the
Constitution requiring each state to recognize the official documents and
civil judgements rendered by the courts in other states
a. Defense of Marriage Act: Congress said that states did not have
to recognize gay marriages, even if they are legal elsewhere
2. Extradition: States are required to return a person charged with a
crime in another state to that state for trial or imprisonment
3. Privileges and Immunities Clause: a clause in Article IV, Section 2,
of the Constitution according citizens of each state most of the privileges
and immunities of any other state in which they happen to be
a. exceptions: state residents pay cheaper tuition at state
universities, only state citizens can vote in state elections, special
taxes on hotel rooms for out of state people
III. Intergovernmental Relations Today
A. From Dual to Cooperative Federalism
1. Dual Federalism: a system of government in which both the states
and the national government remain supreme within their own spheres,
each responsible for some policies
2. Cooperative Federalism: a system of government in which powers
and policy assignments are shared between states and the national
government
a. the may share the costs
b. they may share the administration
c. federal guidelines: most federal grants to states come with
strings attached (for ex. Drinking age)
d. they may even the blame for programs that work poorly
3. before the national government began to assert its dominance over state
governments, the American federal system leaned toward dual federalism
a. our American system has never really been separated purely
into state or national responsibilities
4. cooperative federalism can persist even when the two levels of
government are in conflict with each other
5. Regan tried to push back to dual federalism
6. the Republicans in 1995 worker both sides of the coin
B. Fiscal Federalism: the pattern of spending, taxing, and providing grants in
the federal system
1. fiscal federalism is the cornerstone of the national government’s
relations with state and local governments
2. the national government has a powerful source of influence over the
states – money
3. Grant-in-aid federal funds are funds appropriated by Congress for
distribution to state and local governments
a. they are the main instrument the national government uses for
both aiding and influencing states and localities
b. federal aid to states and localities amounts to approximately
$250 billion per year
1. in 2001 it was about $306 billion
2. federal aid accounts for about 1/5 of all the funds spent
by state and local governments and for about 17% percent
of all federal government expenditures
4. The Grant System: Distributing the Federal Pie
a. the national government regularly publishes the Catalog of
Federal Domestic Assistance, a massive volume listing the federal
aid programs available to states, cities, and other local
governments
C. there are two major types of federal aid for states and localities
1. Categorical Grants: federal grants that can be used only for specific
purposes, or categories, of state and local spending
a. they are the main source of federal aid
b. they come with strings attached
c. cross over sanctions: using federal dollars in one program to
influence state and local policy in another
(ex. Drinking age)
d.. cross-cutting requirements: occur when a condition on one
federal grant is extended to all activities supported by federal
funds, regardless of their source
(ex. discrimination)
e. there are two types of categorical grants
1. Project Grants: federal grants given for specific
purposes and awarded on the basis of the merits of
applications (the most common type of categorical grant)
2. formula grants: federal grants distributed according to
a formula specified in legislation or in administrative
regulations
a. a state or local government does not apply for a
formula grant; they are given out based on the areas
population, per capita income, percentage of rural
population, etc
b. there are sometimes bitter struggles in Congress
over the formulas to be used
(ex. Medicaid, child nutrition programs)
2. Block Grants: federal grants given more or less automatically to states
or communities to support broad programs in areas such as community
development and social services
a. one reason these were created by Congress, in 1966, was
because of the complaints about the cumbersome paperwork and
restrictive federal government requirements attached to categorical
grants
b. states have the discretion in deciding how to spend the money
D. revenue sharing: government aid with no strings attached started under
Johnson, but ended with Regan
E. The Scramble for Federal Dollars
1. most states and many cities have full-time staffs in Washington that
keep track of the available federal dollars and help their state or city get
them
2. on the whole, federal grant distribution follows the principle of
universalism – that is, something for everybody, even though some money
goes where it is not really needed
F. The Mandate Blues
1. there are some occasions when states would prefer not to receive some
federal aid – such as when Congress extends a program that is
administered by the states and only partially funded by the national
government
2. mandates: requirements that direct states or local governments to
comply with federal rules under threat of penalties or as a condition or
receipt of a federal grant (ex. Medicaid )
a. increased federal spending means increased spending for states
3. unfounded mandates: sometimes Congress passes a law creating
financial obligations for the states but provides no funds to meet these
obligations (ex. 1990 – American with Disabilities Act)
a. federal courts have also mandated spending on things like
school desegregation and prison construction
4. in 1995 Congress passed a law that will make it more difficult for
Congress to impose new unfounded mandates
IV. Understanding Federalism
A. by decentralizing the political system in America, federalism was designed to
contribute to the limited form of democracy supported by the founders
B. Advantages for Democracy
1. the more levels of government, the more opportunities there are for
participation in politics
2. additional levels of government contribute to democracy by increasing
access to government
a. different citizens and interest groups will have better access to
either state-level or national governments
3. two levels of government increases the opportunities for government to
be responsive to the demands for policies
4. different economic interests are concentrated in different states
5. the federal system allows an interest concentrated in a state to exercise
substantial influence in the election of that state’s local and national
officials
6. a party that loses strength at the national level can rebuild and groom
leaders at the state and local levels
7. it is possible for the diversity of opinion within the country to be
reflected in different public policies among the different states
(ex. some want the death penalty and some don’t)
8. by handing most disputes over policy at the state and local level,
federalism reduces decision-making and conflict at the national level
C. Disadvantages for Democracy
1. the quality of services like education is heavily dependent on the state
in which the service is provided; states differ greatly in the resources they
can devote to public services
2. diversity in policy can discourage states from providing services that
would otherwise be available because poor people may be attracted from
states with lower benefits
3. federalism may have a negative effect on democracy when local
interests are able to impede national majority support of certain policies
(ex. civil rights in 1960’s)
a. federalism delayed efforts to end racial discrimination, because
state and local governments were responsible for public education
and voting eligibility
4. the vast number of governments in the United States makes it difficult
for many Americans to know which government is responsible for certain
functions
a. there are about 87,504 American governments
D. Federalism and the Scope of the National Government
1. the national government took a direct interest in economic affairs from
the very founding of the republic and it continues to do so today
2. as the United States changed from an agricultural to an industrial
nation, new problems arose and with them new demands for governmental
action
3. as the United States became more urbanized, new problems arose in the
areas of housing, welfare, the environment, and transportation
4. the United States moved from a system of dual federalism to one of
cooperative federalism, in which the national and state governments share
responsibility for public policies