Federalism Grants and Preemption Laws

Federalism- Grants ➔ Congress authorizes programs and appropriates funds- they have deeper pockets than the states. ➔ The most potent tool for influencing policy at the state level that Congress has been through grants.

Federalism- Use of Grants Categorical grants ➔ Congress appropriates money for specific purpose ➔ They also provide for federal supervision

Categorical Grants- cont’d Most common is the Project Grant that is awarded on the basis of competive applications (research universities) Formula Grants are disbursed according to a formula based on population, per capita income, percentage of rural population or some other factor. i.e. Community Development, Medicaid

Federalism- Use of Grants Block grants- broad grants given to states for prescribed activities- few strings attached, but when the money for any fiscal year is gone, there is no more money. The money is given in a lump sum.

Federalism- Use of Grants Conditional Grants- Congress appropriates the money but with strings attached. Cannot have the money unless you match the amount they are giving. (i.e. Raise the drinking age if you want your federal funding)

Federalism and the Use of Grants

Preemption Laws ● Preemption is the power to assume responsibility for a state government function, in order to gain authority over a state. ● i.e. Nutritional Labeling and Education Act in 1990

Preemption Laws- cont’d ● Restraints are requirements set forth by Congress that prohibit a local or state government from exercising a certain power. ● A mandate is a federal order requiring states to provide a service or undertake an activity in a manner that meets minimum national standards set forth by Congress.

Preemption Laws- cont’d What is an example of a preemption law that did good? Why would states dislike preemption laws?