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Fiscal federalism
The federal government’s use of grants and funding to influence state and local government policies.
Categorical grants
Federal grants given to state or local governments for a specific purpose
Nondiscrimination provision
A requirement that organizations receiving federal funds cannot discriminate against protected groups.
Formula grants
Categorical grants distributed according to a set formula based on factors such as population
Project grants
Categorical grants awarded competitively to states
Block grants
Federal grants given for a broad policy area with fewer restrictions
Crosscutting requirements/mandates
Federal requirements that apply to many or all programs receiving federal funds
Unfunded mandates
Federal requirements imposed on state or local governments without providing enough federal money to pay for them.
United States v. Windsor (2013)
Supreme Court case that struck down the federal Defense of Marriage Act provision defining marriage as only between a man and woman
Obergefell v. Hodges (2015)
Supreme Court case holding that the Fourteenth Amendment requires states to license and recognize same-sex marriages.
Advantages of federalism
Allows states to create policies for local needs
Disadvantages of federalism
Can create unequal policies and services between states