Federalism: Forging a Nation Chapter 3

Federalism: National and State Sovereignty The argument for federalism The argument for federalism Authority divided into two levels: national and regional Authority divided into two levels: national and regional Protects liberty Protects liberty Moderates government power by sharing Moderates government power by sharing Strengthens the union Strengthens the union © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.2

Federalism: National and State Sovereignty The powers of the nation and states The powers of the nation and states National: enumerated powers National: enumerated powers Seventeen powers, including measures for secure defense and stable commerce Seventeen powers, including measures for secure defense and stable commerce Supremacy clause Supremacy clause National: implied powers National: implied powers “Necessary and proper” / “elastic” clause: make laws in support of enumerated powers “Necessary and proper” / “elastic” clause: make laws in support of enumerated powers © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.3

Federalism: National and State Sovereignty The powers of the nation and states The powers of the nation and states Tenth Amendment established reserved powers: powers not delegated to the national government are reserved for the states Tenth Amendment established reserved powers: powers not delegated to the national government are reserved for the states © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.4

Federalism as a Governing System: Examples of National, State, and Concurrent Powers © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.5

Federalism in Historical Perspective An indestructible union ( ) An indestructible union ( ) The nationalist view: McCulloch v. Maryland (1819); clear ruling in favor of national power and supremacy clause The nationalist view: McCulloch v. Maryland (1819); clear ruling in favor of national power and supremacy clause The states’-rights view: the Dred Scott decision (1857); ruling for states rights in conflict over legality of slavery The states’-rights view: the Dred Scott decision (1857); ruling for states rights in conflict over legality of slavery © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.6

Federalism in Historical Perspective Dual federalism and laissez-faire capitalism ( ) Dual federalism and laissez-faire capitalism ( ) Dual federalism: separation of national from state power Dual federalism: separation of national from state power The Fourteenth Amendment and state discretion The Fourteenth Amendment and state discretion Judicial protection of business: Supreme Court limited national power Judicial protection of business: Supreme Court limited national power National authority prevails after 1937 National authority prevails after 1937 © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.7

Federalism in Historical Perspective Toward national citizenship Toward national citizenship Equal civil rights across all states Equal civil rights across all states Fourteenth Amendment Fourteenth Amendment Brown v. Board of Education (1954) Brown v. Board of Education (1954) © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.8

Federalism Today Interdependency and intergovernmental relations Interdependency and intergovernmental relations Cooperative federalism: shared policy responsibilities Cooperative federalism: shared policy responsibilities National, state, and local levels work together National, state, and local levels work together Joint funding, administration, and determination of programs Joint funding, administration, and determination of programs © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.9

Federalism Today Government revenues and intergovernmental relations Government revenues and intergovernmental relations Fiscal federalism: federal funds used for state programs Fiscal federalism: federal funds used for state programs Categorical grants: federal funds restricted to certain state programs Categorical grants: federal funds restricted to certain state programs Block grants: federal funds for state programs addressed to a general concern Block grants: federal funds for state programs addressed to a general concern © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.10

Federal, State, and Local Shares of Government Tax Revenue © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.11

Federal Grants to State and Local Governments © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.12

Federalism Today Devolution Devolution Shift of power from national government to states Shift of power from national government to states Dramatically increased with Republican Revolution of 1994 Dramatically increased with Republican Revolution of 1994 Supreme Court has advanced devolution, especially in latter decades of twentieth century Supreme Court has advanced devolution, especially in latter decades of twentieth century Devolution movement ended with presidency of George W. Bush: education and security policy Devolution movement ended with presidency of George W. Bush: education and security policy © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.13

The Public’s Influence: Setting the Boundaries of Federal-State Power Roosevelt’s “New Deal”—jobs during the Great Depression Roosevelt’s “New Deal”—jobs during the Great Depression Lyndon Johnson’s “Great Society”—increased social services in 1960s Lyndon Johnson’s “Great Society”—increased social services in 1960s Republican Revolution—rolled back federal authority in 1990s Republican Revolution—rolled back federal authority in 1990s Recent public backing of huge federal stimulus in 2009 Recent public backing of huge federal stimulus in 2009 © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.14