1. Chapter 3
Dual Federalism
Cooperative Federalism
New Federalism

2. Restraining National Power with Dual Federalism
In 1815, President James Madison called for a federally funded program of “internal improvements,” which was one of the few policy roles for the national government during the first half of the nineteenth century. By improving transportation through the construction of roads and canals, the government fostered the growth of the market economy and boosted federal power.
In 1815, President James Madison called for a federally funded program of “internal improvements,” which was one of the few policy roles for the national government during the first half of the nineteenth century. By improving transportation through the construction of roads and canals, the government fostered the growth of the market economy and boosted federal power.

3. Dual Federalism, 1789–1937
Dual Federalism: a constitutional interpretation that gave the federal government exclusive control over some issues, and states exclusive control over others.
The federal government was small and dealt primarily with foreign affairs and commerce.
Internal improvements, like roads and canals
Tariffs (taxes on imports), patents, currency
the role of the Supreme Court in this era was to determine where the line was drawn over which level of government had authority over what.
At some point in this part of the lecture, you may want to note that the role of the Supreme Court in this era was to determine where the line was drawn over which level of government had authority over what. Jurisprudence looked very different from what followed under cooperative federalism, where the question was less about which level of government had sovereignty over an issue and more over whether the mechanism itself was acceptable. In any event, leave the students with the understanding that the states performed the majority of governing over citizens’ day-to-day lives through their police powers.

4. Dual Federalism, 1789–1937
TABLE 3.2 The Federal System: Specialization of Governmental Functions in the Traditional System (1800–1933)
TABLE 3.2 The Federal System: Specialization of Governmental Functions in the Traditional System (1800–1933)

5. Dual Federalism, 1789–1937
States performed the majority of governing over citizens’ day-to-day lives.
Property law
Civil law (marriage, divorce, adoption)
Criminal law
Dual federalism allowed states to experiment with policies.
Very different sets of rights from state to state
This approach to government allowed slavery (and all associated regulations, commerce, criminal, and otherwise) to exist in some states but not others.
This approach to government allowed slavery (and all associated regulations, commerce, criminal, and otherwise) to exist in some states but not others.

6. Dual Federalism, 1789–1937
It took more than 150 years for the federal government to extend its power over the domestic sphere.
A series of Supreme Court decisions produced these fundamental shifts.
McCulloch v. Maryland (1819) allowed Congress to use its implied powers expansively, especially as they related to commerce
Gibbons v. Ogden (1824) established the supremacy of Congress over all matters affecting interstate commerce. But this left open the definition of “interstate commerce.”
McCulloch v. Maryland (1819) allowed Congress to use its implied powers expansively, especially as they related to commerce.
Gibbons v. Ogden (1824) established the supremacy of Congress over all matters affecting interstate commerce. But this left open the definition of “interstate commerce.”

7. Federalism and the Slow Growth of the National Government’s Power
In 1916, the national government passed the Keating-Owen Child Labor Act, which excluded from interstate commerce all goods manufactured by children under age 14. The act was ruled unconstitutional by the Supreme Court, and the regulation of child labor remained in the hands of state governments until the 1930s.
In 1916, the national government passed the Keating-Owen Child Labor Act, which excluded from interstate commerce all goods manufactured by children under age 14. The act was ruled unconstitutional by the Supreme Court, and the regulation of child labor remained in the hands of state governments until the 1930s.

8. Dual Federalism, 1789–1937
Since the New Deal, the federal government has been able to use the Commerce Clause to regulate large swaths of domestic activities.
Since the New Deal, not one single law or rule created by Congress under the Commerce Clause power was rejected by the courts until United States v. Lopez in 1995, and then again in 1997 with Printz v. United States.
Congress can also influence the states to enact laws by promising them federal funds to do so, or to threat to withdraw funds if they do not.
Since the New Deal, not one single law or rule created by Congress under the Commerce Clause power was rejected by the courts until United States v. Lopez in 1995, and then again in 1997 with Printz v. United States. Why does Congress use this leverage over the states?
In theory, states have the option of refusing funds. This is the “if you’re going to live in my house, then you’re going to cut your hair/meet curfew/etc ” argument. In reality, states usually find it very difficult to refuse funds because they rely so heavily upon them for basic services (education, roads, health, etc.). For example: the Utah state legislature seriously considered refusing education funds under the No Child Left Behind Act, but in the end concluded they simply could not afford to fund the state public schools without federal government dollars.

9. Federal Grants
The vast new programs created as part of the New Deal expanded the federal government’s power. Programs like the Works Progress Administration (WPA), which provided jobs for the unemployed, were established to address the Great Depression, but the overall expansion of the national government lasted even after the Depression ended.
The vast new programs created as part of the New Deal expanded the federal government’s power. Programs like the Works Progress Administration (WPA), which provided jobs for the unemployed, were established to address the Great Depression, but the overall expansion of the national government lasted even after the Depression ended.

10. Historical Trend of Federal Grants-in-Aid,* 1950–2012
FIGURE 3.1 Historical Trend of Federal Grants-in-Aid,*1950–2012
Spending on federal grants-in-aid to the states has grown dramatically since These increases reflect the growing public expectations about what government should do. What has been the most important cause of the steady increase in these grants?
Excludes outlays for national defense, international affairs, and net interest.
SOURCE: U.S. Budget for Fiscal Year 2013, Historical Tables, Table 12.2
FIGURE 3.1 Historical Trend of Federal Grants-in-Aid,*1950–2012
Spending on federal grants-in-aid to the states has grown dramatically since These increases reflect the growing public expectations about what government should do. What has been the most important cause of the steady increase in these grants?
Excludes outlays for national defense, international affairs, and net interest.
SOURCE: U.S. Budget for Fiscal Year 2013, Historical Tables, Table 12.2, 6/10/12).

11. The New Deal Grants-in-aid (categorical grants)
Funds provided by federal government to state or local government for a specific purpose
New Deal expanded to include social programs
Includes competitive project grants
State and local governments compete for funds based on merit of their proposals

12. Cooperative Federalism
Cooperative federalism: model in which the various levels of government work together to solve policy problems, often with the federal government providing some portion of the funding, which is spent by the states or localities
typically the funding formula is some sort of matching grant in which the federal government will provide funds to the states sometimes on a dollar-per-dollar basis, but at other times it will give poorer states more funds per dollar of their own spending than it does for wealthier states
You may want to note that typically the funding formula is some sort of matching grant in which the federal government will provide funds to the states sometimes on a dollar-per-dollar basis, but at other times it will give poorer states more funds per dollar of their own spending than it does for wealthier states.

13. Cooperative Federalism
Expansion of national power diminishes the old paradigm of dual federalism.
Cooperation between state and national governments replaces dual federalism.
Morton Grodzins cake analogy:
Dual federalism as layer cake
Cooperative federalism as marble cake
States were eager to engage and cooperate with the federal government after the Depression when interest in federal funds defined the New Deal.
Cooperative federalism emerged from the new social and economic dynamics that now defined the politics of the day.

14. Dual versus Cooperative Federalism
FIGURE 3.2 Dual versus Cooperative Federalism
In layer-cake federalism, the responsibilities of the national government and state governments are clearly separated. In marble-cake federalism, national policies, state policies, and local policies overlap in many areas.
Dual federalism had separate levels of government concerned with distinct policy areas, like a layer cake.
Cooperative federalism has the federal government, states, and localities working together, like a marble cake.

15. Regulated Federalism and National Standards
In 2005, the Supreme Court ruled that the federal government had the right to prosecute individuals for using medical marijuana, even in states that had made such use legal. Despite the Court’s ruling, some states have continued to permit the dispensing and use of medical marijuana.
In 2005, the Supreme Court ruled that the federal government had the right to prosecute individuals for using medical marijuana, even in states that had made such use legal. Despite the Court’s ruling, some states have continued to permit the dispensing and use of medical marijuana.

16. Cooperative Federalism
Regulated federalism
With increased funding, the federal government demanded higher standards and stricter uses for funds.
Preemption
The principal that allows national government to override state/local actions in certain policy areas
Occurs when state/local actions do not agree with national requirements

17. Cooperative Federalism
Congress dramatically increased unfunded mandates: rules forcing states to spend their own money to comply with federal law.
The CBO estimated that between 1983 and 1990, unfunded mandates cost the states and localities somewhere between $8.9–$12.7 billion.
Backlash to federal preemption and unfunded mandates led to calls for devolution: transferring responsibility from federal government to state/local governments
Popular since the 1970s
Idea led to New Federalism
The CBO estimated that between 1983 and 1990, unfunded mandates cost the states and localities somewhere between $8.9–$12.7 billion.
In 1994, Congress passed the Unfunded Mandate Reform Act (UMRA), requiring that Congress estimate the costs in unfunded mandates for any program it believes will cost the states more than $50 million.
This law does not prevent Congress from passing the mandate though, only requires providing estimates.

18. Devolution: For Whose Benefit?
The debate over national versus state control of speed limits arose in 1973, when gas prices skyrocketed and supplies became scarce. Drivers nationwide were forced to wait in long lines at gas stations. The federal government responded to the gas crisis by instituting a national 55 miles per hour speed limit.
The debate over national versus state control of speed limits arose in 1973, when gas prices skyrocketed and supplies became scarce. Drivers nationwide were forced to wait in long lines at gas stations. The federal government responded to the gas crisis by instituting a national 55 miles per hour speed limit.
$.36 per gallon

19. Reagan cut federal aid to states by 12 percent.
New Federalism
New Federalism: Nixon and Reagan efforts to devolve many policies back to the states.
Block grants
General revenue sharing
Smaller federal spending and interference
Reagan cut federal aid to states by 12 percent.
The idea was to remove federal government, as much as possible, from local matters governed by the states.
Under President Reagan, Congress created 12 sweeping block grants that replaced hundreds of previous categorical grants.
Block grants provide federal funds for a certain purpose, but with few rules as to how that purpose is to be achieved.
General revenue sharing provided federal funds to the states to spend as they wished, allowing for experimentation with different policies.

20. New Federalism
Under President Reagan, Congress created 12 sweeping block grants that replaced hundreds of previous categorical grants.
Block grants provide federal funds for a certain purpose, but with few rules as to how that purpose is to be achieved.
General revenue sharing provided federal funds to the states to spend as they wished, allowing for experimentation with different policies.
Under President Reagan, Congress created 12 sweeping block grants that replaced hundreds of previous categorical grants.
Block grants provide federal funds for a certain purpose, but with few rules as to how that purpose is to be achieved.
General revenue sharing provided federal funds to the states to spend as they wished, allowing for experimentation with different policies.

21. The Rise, Decline, and Recovery of Federal Aid
FIGURE 3.3 The Rise, Decline, and Recovery of Federal Aid, 1960–2012*
The level of federal aid has varied over the past several decades as program costs and politics have affected the role the national government plays in funding state and local services. The data in this figure show a rise, decline, and recovery of federal aid. What factors contributed to each of these trends?
*Estimate
FIGURE 3.3 The Rise, Decline, and Recovery of Federal Aid, 1960–2012*
The level of federal aid has varied over the past several decades as program costs and politics have affected the role the national government plays in funding state and local services. The data in this figure show a rise, decline, and recovery of federal aid. What factors contributed to each of these trends?
*Estimate
SOURCES: Office of Management and Budget, (accessed 6/10/12), and U.S. Federal Budget for Fiscal Year 2013, Analytical Perspectives, Table 18.2, BUDGET-2013-PER/pdf/BUDGET-2013-PER.pdf (accessed 6/10/12).

22. Regulated versus New Federalism
FIGURE 3.4 Regulated versus New Federalism

23. Federalism Since 2000
The balance between the federal government and the states is constantly evolving.
National and state concerns since 2000
Real ID Act
No Child Left Behind (NCLB)
American Recovery and Reinvestment Act (ARRA; commonly “The Stimulus”)
Patient Protection Affordable Health Care Act (commonly “Affordable Health Care,” “Obamacare”)
Debates about the costs required to comply with health care, stimulus grants, education standards, and identification policies have raised the point about unfunded mandates and the relationship between the federal and state government.
Students may have some personal familiarity with these programs, particularly NCLB as public schools across the country implemented testing and practices to comply with the policy.
Consider discussing the 2012 Supreme Court decision on the Health Care Bill, what aspects related to unfunded mandates and federal-state domains were addressed in the majority and minority opinions?

24. Debates about the costs required to comply with health care, stimulus grants, education standards, and identification policies have raised the point about unfunded mandates and the relationship between the federal and state government.