1. Terms you need to know… Federalism Dual Federalism Federalist #51
Delegated powers
Reserved powers
Concurrent powers
Prohibited powers
Elastic clause
McCulloch v. Maryland (1819)
Commerce clause
Gibbons v. Ogden (1824)
Dual Federalism
Cooperative Federalism
Grants-in-aid
Categorical grant
Block grant
Mandate
Devolution
Pros and cons of federalism

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. Elastic Clause Aka – “Necessary and Proper Clause”
Art. I, Sec. 8, Cl "The Congress shall have Power - To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."
Impossible to predict all powers Congress will need to function, sometimes we might have to allow Congress extra powers to fulfill their delegated powers

4. 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.

5. Fiscal Federalism Fiscal means $
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?

6. 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)

7. 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

8. 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

9. Devolution Devolution is the return of power to the state gov
Idea is fueled by distrust of the federal gov and the desire to save money by reducing the size of the “bloated federal government”

10. 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

11. Federalism is good Living under 2 governments is great…
Built on compromise, promotes unity
Gov’t duties can be split up
Brings gov’t closer to people
Allows for state gov’t to address issues in unique regions of the country
Allows states to experiment with policy before enacting it at the federal level – Ex. Vermont’s free health care for children

12. Federalism is bad Living under 2 governments is bad…
States can impede progress of Nation
States are unequal
States have different policy
Easier for states to be dominated by interest groups