1. Federalism Part 2

2. Powers
Delegated Powers (enumerated powers) – powers given to Fed gov’t by Constitution
Reserved Powers – state power alone
Concurrent Powers – shared
Prohibited Powers – denied from both
Ex. Neither gov’t can tax exports

3. Commerce clause
Art. I, Sec. 8, Cl. 3 – ‘The Congress shall have power - To regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”
Congress has used the elastic clause to stretch this power
What is commerce? “Buying and selling of goods and services.”
Congress given the power to regulate commerce between foreign countries and US as well as state to state… they control business law.

4. Gibbons v. Ogden (1824) 1824 – aka “The Steamboat Case”
Ogden received a state licensed monopoly to run a ferry across the Hudson River
Gibbons also saw the potential of the traffic between NJ and NY and obtained a federal license.
Ogden sued saying he had the valid state license, even though Gibbons had US license

5. Gibbons v. Ogden (1824) Result – Gibbons wins
Expanded national power in all areas of commerce law because nation overruled state in interstate trade issues
Fed Gov’t gets STRONGER
All trade today is primarily controlled by national law

6. Commerce Clause Who cares? Why is it important?
Gibbons v. Ogden ruling makes a loop hole giving Congress power to take control over any issue involving the movement of people, or things
Fed gov’t power increased

7. United States v. Lopez (1995)
1995 – “Gun Free School Zone” law banned possession of a firearm within 1000 feet of a school, 12 year old Lopez carried a gun on to the property
Declared law unconstitutional – “nothing to do with commerce” – carrying a weapon through a school zone is too much of a stretch for “commerce”
LIMITED National government power

8. Gonzalez v. Raich (2005)
Controlled Substance Act (1970) – US gov regulates the manufacture, importation, possession, and distribution of certain drugs
Medicinal marijuana was legalized in California, but illegal to US government. Raich argued commerce clause should not take effect because 1) there was no business transactions and 2) there were no state border issues.
Supreme Court ruled 6-3 against Raich saying that the federal government could trump state laws that permitted medicinal marijuana

9. 2 Federalisms Cooperative Federalism – Marble Cake TWO METAPHORS…
Dual Federalism – Layer Cake
Federal
State
Cooperative Federalism – Marble Cake

10. Fiscal Federalism
Q – How do you get the states to do things they normally wouldn’t do?
A – Money
Q – What is the answer to any question ever asked?

11. Grants-in-Aid
Money paid from one level of government to another to be spent for a specific purpose
Categorical Grants - target specific purposes and “strings attached.” (States receive funds if state raised age to 21 and lowered BAC to .08)
Block Grants – given for broad, general purposes and allow more discretion on how the money is spent (ex. Welfare reform)

12. Mandates
A requirement that a state undertake an activity or provide a service
Most apply to Civil Rights and the Environment
Often times the states or local gov’ts have to pay the bill of the mandate set by Congress

13. Mandates
1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act
1988 – Drug-free Workplace Acts, Ocean Dumping Ban Act
1990 – Clean Air Act
EX – Columbus, OH spends 23% of the city budget trying to meet environmental mandates (including testing for pesticides used on rice and pineapple)
EX – Public schools have to use Internet filtering or schools lose e-rate subsidies

14. The Devolution Revolution
Devolution = delegation of power & responsibility
Clinton Era reaction to growth in power of the national government due to Republican majority in both houses of Congress
President Clinton: responsibility to administer federal programs as chief executive
SOH Gingrich: roll back scope of federal government and give back of power to the states
Contract with America: shift responsibilities to states; Unfunded Mandate Reform Act of 1995

15. Devolution Example
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Eliminated welfare and transferred the money to states as block grants
States received wide latitude on how to administer “workfare” but with the knowledge that Congress was counting on anti-poverty spending”
Strings attached: head of family must work or lose benefit; lifetime benefits limited to 5 years; unmarried mother < 18 only receive $ if stay in school and live with adult; immigrants ineligible for 5 years

16. Summary – Key Points to Remember
Federalism is an important concept of the American system of government meant to limit the power of the national government.
The notion of Federalism has changed drastically since the New Deal in the 1930’s.
In the 1960’s and 1970’s the scope of federal domestic policies and programs increased steadily.
In the 1980’s Reagan began a rollback of federal funding for programs and funding to states.
In the mid-1990’s Republican Congress promised to reduce the size and scope of the national government and “return power to the states.”