Chapter 3
Federalism
Federalism
Federalism in the Constitution
• Federalism: A system in which the national
government shares power with lower levels of
government.
• The United States Constitution divides power
between the federal and state governments.
Federalism in the Constitution
• Why federalism?
– The original states already existed at the time of the
Revolution.
– The states created the federal government, not the other
way around.
– The former colonists distrusted strong, central
governments.
Federalism in the Constitution
• The Constitution grants two types of powers to
federal government: expressed and implied.
– Expressed powers (17 of them) are found in Article I,
Section 8 of the Constitution.
– Implied powers are found at the end of Section 8, which
grants Congress the right “To make all Laws which shall
be necessary and proper for carrying into Execution” the
expressed powers
Federalism in the Constitution
• Article VI also says that the laws of Congress shall
be “the supreme Law of the Land.”
• Known as the “supremacy clause,” this means than
when a federal and state law collide, the federal one
will dominate
Federalism in the Constitution
• States have significant powers, too.
– Tenth Amendment
– Police powers
– Concurrent powers
Federalism in the Constitution
• 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.”
Federalism in the Constitution
• Police powers
– A given State has the ability regulate the health, safety,
and morals of its citizens.
– States also define and regulate private property.
• Concurrent powers
– The states and the federal government also share certain
powers.
The Changing Role of the States
Federalism in the Constitution
Full Faith and Credit Clause: Article IV, Section 1
– Requires states give “full faith and credit” to each other’s
“public acts, records, and judicial proceedings.”
Federalism in the Constitution
Federalism in the Constitution
• Article IV, Section 2, “the comity clause,” guarantees
that all citizens from outside a given state enjoy the
“privileges and immunities” granted to all citizens of
that state.
Federalism in the Constitution
• Article I, Section 10, “No State shall, without the
Consent of Congress … enter into any Agreement or
Compact with another State”
– Compacts are agreements between states to deal with
issues that cross state lines, such as environmental
concerns and transportation systems.
89,527 Governments in the United States (and
counting . . .)
Restraining National Power with Dual Federalism
Dual Federalism, 1789–1937
• Dual Federalism: a constitutional interpretation that
gave the federal government exclusive control over
some issues, and states exclusive control over
others.
• The federal government was small and dealt
primarily with foreign affairs and commerce.
– Internal improvements, like roads and canals
– Tariffs (taxes on imports), patents, currency
Dual Federalism, 1789–1937
Dual Federalism, 1789–1937
• States performed the majority of governing over
citizens’ day-to-day lives.
– Property law
– Civil law (marriage, divorce, adoption)
– Criminal law
• Dual federalism allowed states to experiment with
policies.
– Very different sets of rights from state to state
Dual Federalism, 1789–1937
• It took more than 150 years for the federal
government to extend its power over the domestic
sphere.
• A series of Supreme Court decisions produced these
fundamental shifts.
– McCulloch v. Maryland
– Gibbons v. Ogden
Federalism and the Slow Growth of
the National Government’s Power
Dual Federalism, 1789–1937
• Since the New Deal, the federal government has
been able to use the Commerce Clause to regulate
large swaths of domestic activities.
• Congress can also influence the states to enact laws
by promising them federal funds to do so, or to threat
to withdraw funds if they do not.
Federal Grants
Historical Trend of Federal Grants-in-Aid,*
1950–2012
The New Deal
• Grants-in-aid (categorical grants)
– Funds provided by federal government to state or local
government for a specific purpose
– New Deal expanded to include social programs
– Includes competitive project grants
• State and local governments compete for funds based
on merit of their proposals
Cooperative Federalism
• Cooperative federalism: model in which the various
levels of government work together to solve policy
problems, often with the federal government
providing some portion of the funding, which is spent
by the states or localities
Cooperative Federalism
• Expansion of national power diminishes the old
paradigm of dual federalism.
• Cooperation between state and national
governments replaces dual federalism.
• Morton Grodzins cake analogy:
– Dual federalism as layer cake
– Cooperative federalism as marble cake
Dual versus Cooperative Federalism
Regulated Federalism and National Standards
Cooperative Federalism
• Regulated federalism
– With increased funding, the federal government demanded
higher standards and stricter uses for funds.
• Preemption
– The principal that allows national government to override
state/local actions in certain policy areas
– Occurs when state/local actions do not agree with national
requirements
Cooperative Federalism
• Congress dramatically increased unfunded
mandates: rules forcing states to spend their own
money to comply with federal law.
• Backlash to federal preemption and unfunded
mandates led to calls for devolution: transferring
responsibility from federal government to state/local
governments
– Popular since the 1970s
– Idea led to New Federalism
Devolution: For Whose Benefit?
New Federalism
• New Federalism: Nixon and Reagan efforts to
devolve many policies back to the states.
– Block grants
– General revenue sharing
– Smaller federal spending and interference
• Reagan cut federal aid to states by 12 percent.
– The idea was to remove federal government, as much as
possible, from local matters governed by the states.
The Rise, Decline, and Recovery of Federal Aid
Regulated versus New Federalism
Federalism Since 2000
• The balance between the federal government and
the states is constantly evolving.
• National and state concerns since 2000
– Real ID Act
– No Child Left Behind (NCLB)
– American Recovery and Reinvestment Act (ARRA;
commonly “The Stimulus”)
– Patient Protection Affordable Health Care Act (commonly
“Affordable Health Care,” “Obamacare”)
WHO ARE AMERICANS?
Who Opposed the Affordable Care Act?
CHAPTER 3
WHO ARE AMERICANS?
Who is eligible for Medicaid? Who is insured?
MEDICAID ELIGIBILITY
UNINSURED
US AVG. 35%
MN 215%
AR 17%
TX 35%
Non-elderly with incomes up to 139% of FPL
Percentage of FPL
15−39%
40−79%
15−39%
40−79%
MA 12%
80−119%
40−45%
35−38%
25−29%
12−22%
SOURCES: U.S. Census Bureau, www.census.gov; Kaiser Family Foundation, 50 State Comparisons, Health Coverage & Uninsured,
www.statehealthfacts.org (both accessed 7/25/11); National Federation of Independent Business v. Sebelius, 567 U.S. ___ (2012).
30−34%
WHO ARE AMERICANS?
States that Challenged the ACA
AL
KY
LA
ND
OK
AK
LA
ME
OH
OR
AZ
ME
MD
OK
PA
AR
MD
MA
OR
RI
CA
MA
MI
PA
SC
CO
MI
MN
RI
SD
CT
MN
MS
SC
TN
DE
MS
MO
SD
TX
DC
MO
MT
TN
UT
FL
MT
NE
TX
VT
GA
NE
NV
UT
VA
HI
NV
NH
VT
WA
ID
NH
NJ
VA
WV
IL
NJ
NM
WA
WI
IN
NM
NY
WV
WY
IA
IA*
NY
NC
WI
KS
NC
ND
WY
KY
OH
* Iowa is both a plaintiff and a supporter of the ACA. The attorney
general filed a brief in support of the legislation while the governor,
Terry Branstad, filed a motion to join the suit against it.
SOURCES: U.S. Census Bureau, www.census.gov; Kaiser Family Foundation, 50 State Comparisons, Health Coverage & Uninsured,
www.statehealthfacts.org (both accessed 7/25/11); National Federation of Independent Business v. Sebelius, 567 U.S. ___ (2012).
Public Opinion Poll
The role of the national government has changed
significantly from the Founding era to the present.
Do you think it is possible for the United States—
given its large geographic space, population, and
influence on the rest of the world—to have a
smaller government?
a) Yes
b) No
Public Opinion Poll
Considering the current distribution of power and authority
between the federal government and state and local
governments, do you believe we should:
a)
b)
c)
Provide the federal government with more power and
authority
Provide state and local governments with more power and
authority
Maintain the current distribution of power and authority
between governments
Public Opinion Poll
Which level of government do you believe is best
able to protect the liberty, equality, and rights of all
its citizens?
a)
b)
c)
d)
State government
Federal government
Local government
A combination of the three
Public Opinion Poll
In the coming years, do you believe the power and
authority of the state government will increase,
remain the same, or decrease?
a) Increase
b) Remain the same
c) Decrease
Public Opinion Poll
In the coming years, do you believe the power and
authority of the federal government will increase,
remain the same, or decrease?
a) Increase
b) Remain the same
c) Decrease
Chapter 3: Federalism
• Quizzes
• Flashcards
• Outlines
• Exercises
wwnorton.com/we-the-people
Following this slide, you will find additional images,
figures, and tables from the textbook.
E-Commerce and State Taxes
The Changing Role of the States
The Changing Federal Framework
International Trade Agreements
and the States
New Federalism and State Control
Federalism Since 2000
Federalism Since 2000
Federalism
Federalism