1. Federalism
Chapter 3

2. 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

3. 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”

4. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

17. 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

18. 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.