American Government 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 Dual Federalism (layer cake federalism) Dual federalism is the earliest type of relationship established between the federal government and the states where the federal government’s powers were defined as delegated and the state government’s powers were 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 Competitive Competitive federalism is an approach that stressed the downsizing of the federal government and puts more reliance on revenue sharing grants Creative Federalism- (new federalism) Federalism- Creative federalism is characterized by the Great Society programs, which placed a major responsibility on federally funded programs Developed under Lyndon Johnson 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 powers should be returned to the states Categorical These 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 grants A project grant is awarded on the basis of competitive applications Formula Formula grants are distributed based upon a predetermined formula Grants 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 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. 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