SECTION 2: “American Federalism: Conflict and Change” Chapter 4 SECTION 2: “American Federalism: Conflict and Change”

American Federalism: Conflict and Change Over the past 200 years, conflicts over the balance of power between the national and state governments have led to changes in American federalism. What role does the Supreme Court play in American federalism? How was government power divided in dual federalism? What events caused the expansion of national power in the twentieth century? What is new federalism?

Dual Federalism The first era of American federalism, dual federalism, lasted from about 1789 to the 1930s. Both state and national government were equal authorities operating within their own spheres of influence, as defined by a strict reading of the Constitution.

Dual Federalism The Marshall Court 1819, McCulloch v. Maryland: bank dispute reached Supreme Court Court ruled in favor of nation’s authority to start bank Chief Justice John Marshall argued charter justified by Constitution’s necessary and proper clause Bank would help nation properly execute powers to regulate commerce and currency

Dual Federalism “A House Divided” U.S. became bitterly divided over issue of slavery Debate wrapped up in arguments about states’ rights and national power Southern slave states resisted national measures to outlaw slavery in new states and territories Held states sovereign, could make decisions for themselves

Dual Federalism “A House Divided” (cont’d.) Doctrine of nullification: some southern politicians believed states had right to nullify national laws that contradicted or clashed with state interests State could either choose to follow law or secede from Union Doctrine of secession: idea that states had right to separate from Union

Expanding National Power The Civil War reinforced the supremacy of the national government over the states. In the years following the war, new challenges continued to shift the balance of power in favor of the national government.

Turn-of-the-Century Reforms National government passed legislation to reform social, business conditions 1887: Interstate Commerce Act regulated the railroad industry Set restrictions on rates railroads could charge

Turn-of-the-Century Reforms 1890: Sherman Antitrust Act prevented monopolies: exclusive control of a good or service in a particular market Encourage fair competition in all industries Early 1900s: used to break up large monopolies such as American Tobacco

Turn-of-the-Century Reforms New laws expanded national government’s power to regulate business Court cases limited reach of national power 1895, United States v. E. C. Knight Company: sugar refining companies operated locally, could not be regulated by national government

Turn-of-the-Century Reforms

The New Deal 1933: President Franklin D. Roosevelt introduced New Deal Series of national programs to address needs of Americans Some assisted unemployed, elderly Others provided jobs Major change in role of national government National and state governments worked together to meet crisis Federalism under New Deal known as cooperative federalism

The Great Society 1960s: President Lyndon Johnson expanded powers of national government Great Society program: initiatives aimed at eliminating poverty and social inequity Creative federalism: released federal funds to states to achieve national goals 1965: Medicaid provides free health care for poor

The Great Society If national government determines states not fully cooperating, funding withheld Threat of losing money powerful tool Grant system increased size, cost of national government Urban renewal grants increased from $212 million (1964) to more than $1 billion (1970)

New Federalism Throughout much of U.S. history, the powers of the national government expanded. Beginning in the 1980s, many political leaders worked to reverse this trend by returning authority to state governments. This era is known as new federalism.

New Federalism The Reagan Years 1980s: President Ronald Reagan supported returning power to the states Believed national government less effective than state governments in providing services to people Reagan worked to reduce size of government by cutting national grant money to states

New Federalism The Devolution Revolution 1994 elections: Contract with America—Republican campaign promise to achieve specific goals Central idea: devolution—returning power to states Reduce size and power of national government by eliminating costly federal programs