Fiscal Federalism (UNIT 1b)

dual federalism

2 distinct and separate levels of government (Federal: only national issues; State: local matters)

cooperative federalism

federal and state authority have become intertwined, state depends on federal funds to support their own programs

fiscal federalism

power of the purse-federal government uses money to influence states to give up some powers, allowing federal government to achieve national goals in traditionally state-controlled areas

grants in aid

federal government gives money to the states for a particular purpose

block grants

money given for a fairly broad purpose with few strings attached

categorical grants

given for a specific purpose and comes with restrictions concerning how the money should be spent (more common, two types)

project grants

money given through competitive application process, for a particular endeavor/task

formula grant

money distributed based on formula of factors

strings attached

refers to tactics used by the federal government to compel the states to follow its policies and guidelines

mandates

federal government orders states to take certain actions (obey laws). if states don't take those actions they don't receive funding

unfunded government

congress orders states to take certain actions (obey laws) but provides no funding

preemption

because of the supremacy clause federal laws take priority over state laws. the national government can override state laws if there is a compelling national interest