Fiscal Federalism Quiz

fiscal federalism

Federal government uses money to convince the states to give up control over some of their powers 

allows fed to achieve national goals in traditionally state-controlled areas

cooperative federalism

federal and state authority are intertwined (since Great Depression and New Deal and increased during Great Society)

States depend on fed funds to support their own programs (Medicaid, Medicare, Head Start)

dual federalism

2 distinct and separate levels of government

federal government (national issues)

state government (local matters)

each level supreme in its own sphere and the kept separate

block grants

money given for a fairly broad purpose with few strings attached 

Ex: purposes - community development, social services

1996 Clinton Welfare Reform Act

categorical grants

Given for a specific purpose and comes with restrictions concerning how the money should be spent (strings attached) 

More common

ex. National Minimum Drinking Age Act (1984) 

Two Types: project and formula 

project grants

type of categorical grant

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

formula grants

money distributed based on a formula of factors

ex. population, per capita income, % of rural population, etc; non-competitive 

Ex. SNAP (food stamps), Medicaid 

mandates

federal government (congress) orders states to take certain actions (obey laws) if states don’t take those actions, they don’t receive funding

unfunded mandates

congress orders states to take certain actions (obey laws) but provides no funding
(Americans with Disabilities Act, Clean Air Act, Motor Voter Act, No Child Left Behind)