Federalism Chapter 3

Defining Federalism Federalism Unitary governments Confederation Organization where two or more levels of gov’t have authority Intergovernmental Relations Workings of the federal system – interactions among national, state, and local gov’t Unitary governments All power resides in central gov’t Confederation Modern example: United Nations

Why is Federalism Important? Decentralizes politics Provides more opportunities to participate Decentralizes policies Federal and state gov’t handle different problems States regulate drinking ages, marriage, and speed limits States solve problems in different ways and tend to be policy innovators Known as “Laboratories of Democracy”

Constitutional Basis of Federalism Division of Power Supremacy Clause Federal law, decisions, and treaties are supreme But nat’l gov’t cannot usurp state powers b/c of 10th amendment Powers not delegated to the federal gov’t are reserved for the states

Court Cases Establish Federalism McCulloch v. Maryland (1819) Implied vs. Enumerated powers Congress had the power to incorporate the federal bank and Maryland could not tax instruments of the nat’l gov’t Federal gov’t held powers not enumerated in the Constitution – solidified Supremacy Clause

Court Cases Establish Federalism Gibbons v. Ogden (1824) NY law taxing “foreign” (out-of-state) steamboat operators was invalid b/c it violated a congressional act regulating steamboat trade – Congress could regulate b/c of Commerce Clause Marshall concluded regulation for purposes of conducting interstate commerce was a power reserved to and exercised by Congress

Court Cases Establish Federalism Brown v. Board of Education (1954) Separate but equal are inherently unequal and violated the equal protection clause of the Fourteenth Amendment

States’ Obligations in Federalism Full Faith and Credit Each state must recognize official documents and judgments of others (IV.1) Privileges and Immunities Citizens of each state have privileges of citizens of other states (IV. 2) Extradition States must return a person charged with a crime to that state for punishment

Intergovernmental Relations Today Dual (Layer) Federalism System of gov’t where states and nat’l gov’t remain supreme w/in their own spheres Each responsible for some policies Narrowly interpreted powers of federal gov’t Ended in the 1930s

Intergovernmental Relations Today Cooperative (Marbled) Federalism System of gov’t where powers and policy assignments are shared btw states and nat’l gov’t Shared costs and administration States follow federal guidelines

Fiscal Federalism Fiscal Federalism Pattern of spending, taxing, and providing grants in the federal system Cornerstone of the national government’s relations w/ state and local gov’t

Fiscal Federalism Con’t Grant System: Distributing the Federal Pie to state and local gov’t (Pie day anyone?) Categorical Grants Federal grants used for specific purpose - grants w/ strings attached Project Grants - based on merit Formula Grants - amount varies based on formulas Block Grants Federal grants given more or less automatically to support broad programs

Fiscal Federalism con’t Scramble for Federal Dollars $460 billion in grants every year Grant distribution follows universalism — a little for everybody Mandate Blues Mandates direct states or local gov’t to comply w/ federal rules under threat of penalties or as a condition of receipt of a federal grant Unfunded mandates

Understanding Federalism Advantages for Democracy Increases access to gov’t Local problems can be solved locally Hard for political parties or interest groups to dominate all politics Disadvantages for Democracy States have different levels of service Local interest can counteract nat’l interests Too many levels of gov’t and too much money

Understanding Federalism Federalism and Scope of Gov’t What should the scope of nat’l gov’t be relative to states? National power increased w/ industrialization, expansion of individual rights, and social services Most problems require resources afforded to the nat’l, not state gov’t

Summary American federalism is a governmental system in which power is shared between a central government and the 50 state governments. The United States has moved from dual to cooperative federalism; fiscal federalism. Federalism leads to both advantages and disadvantages to democracy.