Federalism
AMERICAN GOVERNMENT
What is it?
 Federalism

Federalism is a way of organizing a nation so that two or more
levels of government have formal authority over the same area
and people


It is a system of shared power between units of government
Intergovernmental relations

These are the interactions between all levels of government (national, state, and local)
 Unitary

governments
Most governments throughout the world are unitary governments
in which all powers reside in the central government
Types


Dual Federalism (layer cake federalism)

Dual federalism is the earliest type of relationship established between
the federal government and the states

The federal government’s power was defined as delegated and the
state government’s power was reserved (10th Amendment)
Cooperative federalism (marble cake federalism)

Cooperative federalism was developed during the New Deal.

Cooperative federalism is characterized by the federal government
becoming more intrusive in what were traditionally state powers


i.e. terrorism, education, etc.
The Commerce Clause is an example of cooperative federalism

This clause gives Congress the authority to regulate trade with foreign
countries
Types

Competitive Federalism- (new federalism)
 Competitive
federalism is an approach that stressed
the downsizing of the federal government and put
more reliance on revenue sharing grants

Creative Federalism Creative
federalism is characterized by the Great
Society programs, which placed a major
responsibility on federally funded programs

Developed under Lyndon Johnson
Types

Fiscal Federalism

Fiscal federalism is the cornerstone of the national government’s relations with
state and local governments.


It covers the pattern of spending, taxing, and providing grants in the federal system
Devolution

Devolution is the belief that governmental power should be returned to the
states
Categorical

Categorical grants
 Categorical
grants are the main source of federal
aid to state and local governments
 These
grants can be used for only one of several
hundred specific purposes, or categories, of state
and local spending


Something generally tied to these grants is a non-discrimination clause
Project grants
A
project grant is awarded on the basis of
competitive applications
Formula

Formula Grants
 Formula
grants are distributed based upon a
predetermined formula

These formulas may revolve around per capita income, percentage of rural
population, or some other like factor
 The
formulas are highly contested in Congress, as
each Congressman fights to make sure these
formulas benefit their constituency
 These
types of grants provide power to the Federal
government as they control how money is appropriated
Block Grants

Block grants
 Block
grants are a form of fiscal federalism where
federal aid is given to the states with few strings
attached
 Block
grants provide more power to the states as they
can make decisions on how to spend their money
Mandates

Funded Mandates

These are regulations that are passed by Congress or issued by regulatory
agencies to the states, with federal funds to support them.
Unfunded mandates
These are regulations passed by Congress or issued by regulatory agencies to
the states, without federal funds to support them