1. U1, C4: Federalism

2. National defense Gambling laws Public education Voter registration Foreign affairs Disaster relief Real Estate property Environmental protection Levying and collecting taxes Coining money Divorce Making treaties Hunting and fishing laws Declaring war Interstate commerce

3. Federalism System of government Division of powers between National and State/Local determined by written constitution Dual system: two basic levels of government, each with own area of authority Strength: local concern, local action wider concern, national action

4. Powers of the National Government Delegated powers: powers granted in the Constitution - Expressed powers: powers spelled out, expressly, in the Constitution (ex. for legislative branch Article I, Section 8) - Implied powers: powers not expressly stated but are reasonably suggested (Article I, Section 8, Clause 18 “necessary and proper”) - Inherent powers: belong to National Government because it is the national government of a sovereign state in the world community

5. Powers Denied to National Government Constitution denies powers to National Government expressly (ex. to prohibit freedom of religion, speech, press, assembly) Powers denied because of silence of Constitution (ex. power to create public school system) Powers denied because of the federal system itself; National Government should not have power that threatens the existence of this system

6. State Powers Reserved to the States 10 th Amendment Powers the Constitution does not grant to National Government and does not deny to the States Most of what government does in this country today is done by the States Denied to the States

7. Exclusive and Concurrent Powers See chart on page 93

8. Background Informaiton After the War of 1812, the U.S. government needed additional funds to pay off the debts of the war. Instead of being able to borrow money from one institution, the government had to work with multiple state banks. As a result, in 1816, Congress opted to set up the Second Bank of the United States with branch offices in multiple locations. Many states opposed the National Bank because the state banks then had to compete for business. In response, Maryland passed a law requiring the national bank to pay a heavy tax to the state of Maryland. James McCulloch, the bank's cashier, refused to pay the tax. McCulloch was convicted of failing to pay the tax and was fined $2,500. He appealed the case to the Maryland Court of Appeals, which upheld the decision of the lower court and affirmed McCulloch's conviction. The dispute reached the Supreme Court of the United States. The Court Considered These Constitutional Questions: Did Congress have the power to establish a national bank? Did the Maryland law to tax the nationally chartered bank unconstitutionally interfere with federal powers?

9. Constitutional Basis Relevant Excerpts of the Constitution:The Necessary and Proper Clause (Article I, Section 8, Clause 18) "The Congress shall have the Power... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers and all other Powers vested in this Constitution." The Necessary and Proper Clause is also known as the "Elastic Clause" because its meaning may be stretched to allow Congress to pass a variety of laws. The Supremacy Clause (Article VI, Clause 2) "This Constitution, and the Laws of the United States which shall be made in pursuance thereof... shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any state to the Contrary notwithstanding." This part of the Constitution specifically states that federal laws take priority over state laws. The Tenth Amendment "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States, respectively, or to the people.”

10. Federal System and Local Governments Levels of federal system: National government and State governments 87,000 units of local government (all subunits of various state governments)

11. Supreme Law of the Land Supremacy Clause (Article VI, Section 2) Supreme Court apply clause to settle conflicts that dual system of government produces McCulloch v. Maryland (1819)

12. Nation’s Obligations to the States Article IV Republican form of government “guarantee to every State in this Union a Republican Form of Government” Constitution does not define “Republican Form” and the Supreme Court has refused to do so Invasion and internal disorder “protect each of them [States] against Invasion; and on Application of the Legislature, or of the Executive (when the Legislature cannot be convened) against domestic Violence Respect for territorial integrity: recognize the legal existence and territorial integrity Admitting new states (7- step process)

13. Cooperative Federalism Dual system creates an environment of competition, tension, and conflict However, shared powers requires increasing cooperation Federal grants-in-aid programs: grants of federal money or other resources to the States and/or their cities, counties, and other local units Variety of areas: education, mass transit, highway construction, health care, on-the-job training Blur the division of power lines Revenue sharing: annual share of huge federal tax revenue to the States and their cities, counties, and townships (very few strings attached to this money

14. Types of Federal Grants Categorical grants: made for some specific, closely defined purpose; made with conditions attached – require States to: Use money for specific purpose Make own monetary contributions Provide agency to administer Obey guidelines tailored to particular purpose Block grants: made for broadly defined purposes; State and local government much more freedom in deciding how to spend Project grants: made to States, localities, and sometimes private agencies that apply for them

15. Interstate Relations Interstate compacts: with consent of Congress, States may enter into agreements among themselves and with foreign states Full Faith and Credit Clause: Article IV, Section 1 “Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial proceedings of every other State” Exceptions: applies only to civil matters and questions with regards to residency of the State in which record granted (divorce) Extradition: Article IV, Section 2, Clause 2 – legal process by which fugitive from justice in one State can be returned to that State Privileges and Immunities: Article IV, Section 2, Clause 17 – no State can draw reasonable distinctions between its own residents and those person who happen to live in other States