1. Chapter 4 Federalism

2. Dividing Government Power
Main Idea
The Framers of the Constitution established a federal system that divides powers and responsibility between the national and state governments.
Reading Focus
Why did the Framers choose federalism?
What powers does the national government have?
What powers do state governments have?

3. Federalism in Action

4. Why Federalism?
American federalism was invented in Philadelphia in When delegates to the Constitutional Convention met to consider strengthening the national government, federalism was an obvious choice.
New nation struggled to function as confederation
Without power to raise funds, national government not strong enough to deliver stability or economic unity
Unitary rule—all power held by strong central authority—out of the question
Founders suspicious of powerful central government, like British monarchy
Framers sought to forge republic
Relied on philosophers who advocated self-rule and limited government—Hobbes, Rousseau, Smith

6. Why Federalism {continued}
1748: Spirit of the Laws, Baron de Montesquieu
— Dividing power best way to defend people’s freedom from too powerful
government
— Framers thoroughly absorbed this idea
Framers faced difficult balancing act
— National government addresses needs of nation
— Preserve states’ rights
— Ensure republican government
Framers devised plan with authority balanced between nation and states
Carefully divided power between two levels of government—state, national
— All powers dealing with states’ common interests—national defense,
control over currency—assigned to national government
— All other powers remained with states

7. National Powers Expressed Powers
The Constitution outlined a federal system that would provide strong national government and protect states’ rights. In the U.S. federal system, some powers belong to the national government, others are reserved for the states, and still others are shared by both.
Expressed Powers
Expressed powers: powers granted to national government by Constitution
Article I, Section 8: expressed powers of legislative branch—power to issue money, collect taxes, pay debts, regulate trade, declare war, raise and maintain armed forces
Expressed powers of other two branches listed in Articles II, III
Article II gives president power to command armed forces, conduct foreign relations
Article III gives judicial branch power to rule on constitutional issues, cases involving U.S. government, disputes among states

8. Implied Powers Inherent Powers
Implied powers: not specifically listed but logical extensions of expressed powers
Article I, Section 8:necessary and proper clause
Also referred to as elastic clause; used to stretch powers of Congress
Building highways, regulating food, mechanism for collecting taxes
Inherent Powers
Inherent powers: historically recognized as naturally belonging to all governments that conduct business of sovereign nation
U.S. government has inherent powers simply because it is a national government
Power not specifically granted by Constitution: power to acquire new territory, conduct foreign affairs

9. State Powers Constitution has less to say about state powers
James Madison: national powers “few and defined,” state powers “numerous and indefinite”
1791: Bill of Rights reserved powers clause—”powers not delegated to the United States…reserved to the States respectively”
Reserved powers belong to states because they are not delegated to national government, nor prohibited from states
Regulate health, public safety, morals, general welfare of state citizens
Other reserved state powers: ability to regulate marriage, form local governments, control public school systems, establish and enforce laws
Power to regulate businesses operating within borders, issue licenses to doctors, lawyers, barbers, hairdressers

11. Shared Powers
In addition to their reserved powers, states may also share powers with the national government. If the Constitution does not specifically state that a power belongs exclusively to the national government, then the states may exercise that power, too.
Power to collect taxes is a concurrent power: power held by national government, state governments at same time
Both levels of government can establish courts, make and enforce laws, build roads, provide education, borrow and spend money
Citizens subject to two levels of authority; must follow state and national laws
Framers considered situation where national, state laws come into conflict
Article VI supremacy clause: national laws and treaties form the “supreme law of the land”
Judges have to obey Constitution even if it contradicts state laws

13. The Limits of Power Limits on National Government
U.S. Constitution denies certain powers to national, state governments
Framers believed strongly in limited government
Placed limits to prevent tyranny and protect individual liberties
Limits on National Government
Article I, Section 9: government cannot deny right to trial by jury, grant titles of nobility, tax exports between states
May not exercise powers reserved to states or limit basic freedoms
Limits on State Governments
Article I, Section 10: denies specific powers to state governments—to coin money and to tax imports and exports from other states
States may not have own armies, engage in wars, enter into treaties
Powers Denied to Both Levels
Neither can deny people accused of crimes right to trial by jury or grant titles of nobility
Neither can pass ex post facto laws

14. Nation and State Relations
The Nation and the Fifty States
Constitution divides government power, describes responsibilities of national and state governments to each other
Article IV, Section 4: national government only officially recognize representative state governments
National government responsible for protecting states from foreign invasion and domestic uprisings
The Nation and the Fifty States
National government responded to terrorist attack in New York on 9/11
Constitution ensures states be treated as equals by national government
States must have equal representation in Senate
Nation cannot tax people of one state more than another
National government can admit new states, but it cannot split up states that already exist, or change state boundaries in any way.

15. Relations between the States
Constitution gives states right to manage affairs within borders
— Encourages cooperation between states
— States required to extradite persons charged with crime to state where
offense committed
Article IV: full faith and credit clause
— Requires states give “full faith and credit” to public acts, official records,
judicial proceedings of every other state
— Contract signed in one state honored by officials in another state
Article IV, Section 2: privileges and immunities clause
Carefully divided power between two levels of government—state, national
— Citizens of each state receive all “privileges and immunities” of any state
— New Yorker visiting North Carolina will enjoy same police protection as North
Carolinians
— Many exceptions, including in-state college tuition to residents and lower
fees for services funded by taxes

16. What about Local Government
Creating local governments is a power reserved to the states.
Relationship between state and local government different from that of national and state governments
State government has power to reorganize local government at any time to better address state needs
Native American Sovereignty
Article I, Section 8: national government has power to regulate commerce with Indian tribes; used power to make treaties with Native American nations
In most cases treaties resulted in loss of land, sovereignty, and individual rights for native peoples
Native Americans not granted full citizenship until 1924

17. American Federalism: Conflict and Change
Main Idea
Over the past 200 years, conflicts over the balance of power between the national and state governments have led to changes in American federalism.
Reading Focus
What role does the Supreme Court play in American federalism?
How was government power divided in dual federalism?
What events caused the expansion of national power in the twentieth century?
What is new federalism?

18. Role of the Supreme Court
Long before the Civil War, the Framers anticipated the government they created might lead to conflicts between the states and the national government. How did they plan to resolve such conflicts?
Gave Supreme Court power to resolve conflicts between nation and states
Article III gives judicial branch authority to hear cases involving Constitution, U.S. laws, disputes between states
Supreme Court acts as referee, sorting out conflicts between nation, states
Courts make decisions based on rules in Constitution
Article VI includes supremacy clause: Constitution, national laws, treaties made by national government “supreme law of the land”
Court’s rulings have gradually increased power of national government
American federalism continually changed to meet needs of new generations
Changes understood in four terms: dual federalism, cooperative federalism, creative federalism, new federalism

19. Dual Federalism The Great Debate
The first era of American federalism, dual federalism, lasted from about 1789 to the 1930s. Both state and national government were equal authorities operating within their own spheres of influence, as defined by a strict reading of the Constitution.
The Great Debate
Nationalists: advocates of strong, centralized national government
Proponents of states’ rights held national government should not unduly intrude in state affairs
Secretary of Treasury Alexander Hamilton asked Congress to create national bank, argued government had constitutional power to regulate currency, therefore implied power to create bank
Congress refused to renew charter when it expired 20 years later
1816: dispute resurfaced with charter of Second Bank of the United States

20. Dual Federalism {continued}
The Marshall Court
1819, McCulloch v. Maryland: bank dispute reached Supreme Court
Court ruled in favor of nation’s authority to start bank
Chief Justice John Marshall argued charter justified by Constitution’s necessary and proper clause
Bank would help nation properly execute powers to regulate commerce and currency
“A House Divided”
U.S. became bitterly divided over issue of slavery
Debate wrapped up in arguments about states’ rights and national power
Southern slave states resisted national measures to outlaw slavery in new states and territories
Held states sovereign, could make decisions for themselves

21. “A House Divided” (cont’d.)
Doctrine of nullification: some southern politicians believed states had right to nullify national laws that contradicted or clashed with state interests
According to doctrine, if state challenged national law, three-quarters of other states would have to ratify amendment allowing Congress to enact law
State could either choose to follow law or secede from Union
Doctrine of secession: idea that states had right to separate from Union
1860: Issue of sovereignty came to a head after election of Abraham Lincoln
Lincoln believed issue of slavery was divisive
South Carolina first to secede; followed by 10 other states
1861: U.S. divided by Civil War, waged for 4 years; bloodiest war in U.S. history

22. After the Civil War 1865: Confederacy surrendered; Union restored
Defeat of Confederacy settled matter of slavery
War profoundly changed relationship between states, national government
War firmly established national supremacy
Put to rest most radical interpretations of state sovereignty
Led to expanded constitutional powers of national government
13th, 14th, 15th Amendments (Reconstruction Amendments) passed
Abolished slavery, defined citizenship, prohibited states from denying citizens’ rights, extended voting rights to African American men
In time national government would use new constitutional powers to protect rights of African Americans, women, and others

24. Landmark Supreme Court Cases McCulloch v. Maryland (1819)
Why It Matters:
In McCulloch v. Maryland the Supreme Court had the first of many opportunities to influence the division of power in the federal system. The Court’s decision led to the expansion of national power.

25. Expanding National Power
The Civil War reinforced the supremacy of the national government over the states. In the years following the war, new challenges continued to shift the balance of power in favor of the national government.
Turn-of-the-Century Reforms
End of 19th to start of 20th century was time of tremendous change in U.S.
New technology: railroads, telegraph, industrial machinery
Unprecedented growth: population more than doubled from 1870 to 1916
Social and economic problems: overcrowded cities, rising crime rates, dangerous working conditions
Corporations developed great economic influence at expense of working-class Americans
Difficult to address problems at state level

26. Turn-of-the-Century Reforms (cont’d.)
National government passed legislation to reform social, business conditions
1887: Interstate Commerce Act regulated the railroad industry
Set restrictions on rates railroads could charge
1890: Sherman Antitrust Act prevented monopolies: exclusive control of a good or service in a particular market
Encourage fair competition in all industries
Early 1900s: used to break up large monopolies such as American Tobacco
New laws expanded national government’s power to regulate business
Court cases limited reach of national power
1895, United States v. E. C. Knight Company: sugar refining companies operated locally, could not be regulated by national government

27. The New Deal 1929, stock market crashed, led to Great Depression
Poverty and unemployment widespread
Local organizations unable to respond adequately
1933: President Franklin D. Roosevelt introduced New Deal
Series of national programs to address needs of Americans
Some assisted unemployed, elderly
Others provided jobs
Major change in role of national government
National and state governments worked together to meet crisis
Federalism under New Deal known as cooperative federalism
Major shift caused court challenges
Opponents argued constitutional powers to tax and regulate commerce did not give power to enact many New Deal programs
Supreme Court upheld most New Deal legislation

28. The Great Society
1960s: President Lyndon Johnson expanded powers of national government
Great Society program: initiatives aimed at eliminating poverty and social inequity
Creative federalism: released federal funds to states to achieve national goals
1965: Medicaid provides free health care for poor
If national government determines states not fully cooperating, funding withheld
Threat of losing money powerful tool
Grant system increased size, cost of national government
Urban renewal grants increased from $212 million (1964) to more than $1 billion (1970)

29. New Federalism The Reagan Years The Devolution Revolution
Throughout much of U.S. history, the powers of the national government expanded. Beginning in the 1980s, many political leaders worked to reverse this trend by returning authority to state governments. This era is known as new federalism.
The Reagan Years
1980s: President Ronald Reagan supported returning power to the states
Believed national government less effective than state governments in providing services to people
Reagan worked to reduce size of government by cutting national grant money to states
The Devolution Revolution
1994 elections: Contract with America—Republican campaign promise to achieve specific goals
Central idea: devolution—returning power to states
Reduce size and power of national government by eliminating costly federal programs

30. Vocabulary
Expressed Powers
Powers granted to the national government by the Constitution
Implied Powers
Powers that are not specifically listed in the Constitution but are logical extensions of expressed powers
Inherent Powers
Powers that historically have been recognized as naturally belonging to all governments that conduct the business of a sovereign nation
Reserved Powers
Powers that belong to the states because the Constitution neither delegates these powers to the national government nor prohibits them to the states
Concurrent Powers
Powers held by the national government and the state governments at the same time
Full Faith and Credit Clause
Article IV of the Constitution, which requires that states give “full faith and credit” to the public acts, official records, and judicial proceedings of every other state

31. Vocabulary
Dual Federalism
A system of federalism in which both state and national governments were equal authorities operating within their own spheres of influence, as defined by a strict reading of the Constitution
Doctrine of Nullification
The idea that states had the right to cancel national laws that they believed contradicted or clashed with state interests
Doctrine of Secession
The idea that states had the right to separate themselves from the Union