Chapter 2 - Federalism
• The Federal Idea
• Who Does What? The Changing Federal
Framework
• Contemporary Federalism
The Federal Framework
• Federalism is the division of powers and
functions between the national and state
governments.
• Framers sought to limit the national
government by creating separate
sovereigns.
• Explicit power sharing spelled out in the
constitution.
Other Forms of Government
• A unitary system bestows power on the
national government, and the states are
subservient, implementing central
government policy.
• A confederacy bestows power on the
states, and the national government is
subservient.
– Common Market to the European Union
Federal Governments
Unitary Governments
Advantages of Federalism
• Geography
• Population and layers of governments
necessary to fulfill obligations.
– Multiple arenas for decision making.
• Political subcultures with different
priorities.
• Interstate compacts
• States as a “testing lab” for new policies.
Governmental Units in the United States Today
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Federal System Drawbacks
• The variance in local policy application
has led to a lack of uniform state laws
and a demands for national standards.
• Many argue that the national
government should ultimately control all
policy directions.
• Leads national government power
expansion at states expense.
• Powerful state interests can block
national initiatives.
Separation of Powers
• Federalism recognizes two sovereigns by
granting limited powers to the national
government and by reserving the remaining
powers to the states and the people (Article
I, Sec. 8, and the Tenth Amendment).
• The states were sovereign entities before
and after the American Revolution. The
Antifederalist opposed a strong national
government.
Constitutional Design of
Federalism
• Delegated Powers
– Expressed Powers
– Implied Powers
• National Supremacy
• Concurrent Powers
• Reserved Powers
• Powers Denied to Both the Federal and
State Governments
Expressed Powers
• Article I, Sec. 8, grants specific explicit
powers to the federal government,
including the ability to:
— coin money,
— conduct foreign relations,
— raise an army and declare war,
— levy and collect taxes,
— regulate interstate commerce.
“Implied Powers”
• Article I, Sec. 8, also provides that the
federal government has the power to:
— make all laws “necessary and proper”
for executing the powers granted the
federal government under the
Constitution.
—has been referred to as the “elastic
clause” in the Constitution
• Controversy has arisen over what powers
were actually delegated.
National Supremacy
• Article VI provides that the Constitution
and laws enacted pursuant to the
Constitution are superior to state and
local laws.
• This ensures a strong national
government.
Concurrent Powers
• These are powers shared by both the
federal and state governments including
the ability to,
— levy and collect taxes,
— borrow money,
— make and enforce laws,
— establish courts.
Reserved Powers
• Powers not granted to the national
government are reserved to the states
pursuant to the Tenth Amendment.
• Includes the following:
– regulating intrastate commerce,
– providing for public health, safety, and
morals. (police powers)
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Early Federal Power:
Dual Federalism
• Early years were marked by a clear
division in public policy authority.
• National government was quite small and
responsible for
— internal improvements,
— subsidies and tariffs,
— patents and currency,
— public land use,
— foreign policy.
Early State Power:
• State legislatures regulated economic
areas such:
– property, contracts, banking, insurance,
incorporation, credit and professional practices
• States power over the individual:
– criminal statutes,
– health and safety regulations,
– laws concerning marriage, divorce, birth and
adoption.
Challenges to State Power
• National Supremacy Clause - Article VI,
clause 2.
• McCulloch v. Maryland (1819) expanded the
application of the “necessary and proper
clause” and the national supremacy clause.
• This was the first major step in the
expansion of federal power.
Challenges to State Power
• Interstate Commerce Clause - Article I,
section 8.
• Gibbons v. Ogden (1824) established federal
supremacy over interstate commerce.
• State government could not interfere with
commercial activities that crossed state
boundaries.
Challenges to State Power after
Civil War
• The federal government attempted to use its
new authority to regulate commercial
activities, labor laws, and working
conditions.
• Supreme Court ruled these actions
unconstitutional.
The Depression and the Great Society
• Global economic depression occurs in 1930’s.
– Hoover Administration continues “Laissez Faire” policies
– Franklin Roosevelt elected in 1932
• The federal government responded with economic
and social programs.
• The Supreme Court initially ruled that these
programs were unconstitutional.
• Roosevelt threatened to pack the Supreme Court.
• The Supreme Court reversed its position and
upheld the constitutionality of the plan.
• The Supreme Court’s reversal with regard to
Roosevelt’s programs allowed for the rapid
expansion of federal power, the end of “dual
federalism” and the birth of the “New Deal”.
Cooperative Federalism
• Cooperative Federalism grew out of the
Great Depression the 1930s when an overlap
of federal and state functions developed.
• For example, the enforcement of criminal
statutes and drug laws is carried out at the
federal, state, and local levels.
• Food stamps and medicaid are joint
programs.
• Federal government supplies funds (grants in
aid) and local government carry out policies.
Types of Grants
• Land Grants
• Categorical grants specify particular types
of projects for which federal funds can be
used.
– Project grants are a type of categorical grant,
which are competitive.
– Formula grants are allocated based on need or
capacity.
• Block grants are grants for broader areas.
• Grants to States 2007
Texas Budget for 2006/07
Tools of Power: Federal
Mandates and Grants
• Federal mandates are federal laws applied to
states.
• Congress appropriates money to state and
local governments to fund particular
projects, usually with strings attached.
• The LBJ’s “Great Society” increased funded
work and social programs such as AFDC,
Social Security and Medicare.
Nixon and New Federalism
• The burdens of federal regulations,
increasing deficits and unfunded mandates
brought about demands for reducing
federal power in the 1970s.
• Revenue sharing attempted - no mandate or
strings attached.
• Block grants and revenue sharing were
important tools in the movement toward
New Federalism.
The Demise of Nixon’s New
Federalism
• Congress and the states opposed Nixon’s
plan for New Federalism.
• Congress ended revenue sharing.
• Fearing a loss of control over national
programs and standards.
Reagan and New Federalism
• Reagan reinvigorated the demand for New
Federalism.
• Again, the transfer of power to the states
was met with opposition.
• Block grants were used to increase federal
power.
Fiscal Federalism
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Drinking age and transportation grants.
DUI standards and grants.
Education standards and future grants.
Voting uniformity to prevent another
election debacle.
Grants: Aid or Blackmail?
• How can federal government enforce a preemption?
• When the policy area is within concurrent power
category, this is generally known as federal
preemption.
• States could not receive federal highway funds unless
speed limits were lowered, the drinking age was
raised, and seat-belt laws were enacted.
• Are these examples of national standards or federal
blackmail?
• Unfunded mandates impose restrictions on the states.
The 1994 Republican
Revolution
• Newt Gingrich and Republicans again
called for New Federalism in order to
— eliminate unfunded mandates,
— return control over welfare to the states,
— return speed limits to the states.
• Clinton administration also supported
devolution.
• Supreme Court restored the Tenth
Amendment states reserved power during
1990s.
In the 1990s: State v. Feds
• Reinforcing 10th Amendment
• Stressing dual sovereignty
• Limiting federal use if interstate commerce
clause
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New York v. United States
Gregory v. Ashcroft
Employment Division v. Smith
United States v. Lopez
Seminole Tribe v. Florida
City of Boerne v. Flores
• Will war on terrorism reverse this trend?