1. Chapter Two Federalism and the States

2. Copyright © Houghton Mifflin Company. All rights reserved. 2-2 The Concept of Federalism Unitary, Confederate, and Federal Systems The Advantages and Disadvantages of Federalism

3. Copyright © Houghton Mifflin Company. All rights reserved. 2-3 The History of U.S. Federalism Early History The Move Toward Federalism State-Centered Federalism The Growth of National Power Through the Constitution and the Judiciary The Growth of National Power Through Congress

4. Copyright © Houghton Mifflin Company. All rights reserved. 2-4 Models of Federalism Dual Federalism (1787–1932) Cooperative Federalism (1933–1964) Contemporary Variations on Cooperative Federalism Since 1964 President Clinton, the Republican Congress, and the “Devolution Revolution” George W. Bush and New Federalism

5. Copyright © Houghton Mifflin Company. All rights reserved. 2-5 Intergovernmental Relations Tribal Governments Interstate Cooperation Intergovernmental Financial Relations

6. Copyright © Houghton Mifflin Company. All rights reserved. 2-6 Federal Purse Strings The Importance of Federal Funds Here’s the Check and Here’s What to Do with It: Mandates, Pre-emptions, Set- Asides, and Cost Ceilings

7. Copyright © Houghton Mifflin Company. All rights reserved. 2-7 Figure 2.1: Historical Trends in Federal Grants-in-Aid Outlays Source: U.S. Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2002, Historical Tables, and www.access.gpo.gov/usbudget/fy2003/pdf/hist.pdf

8. Copyright © Houghton Mifflin Company. All rights reserved. 2-8 Table 2.1: Federal Grants to State & Local Governments in 2002, in Rank Order

9. The Future of Federalism Conclusion Copyright © Houghton Mifflin Company. All rights reserved. 2-9