Federalism

• Sharing of powers between state and federal government

• Congress’s powers are enumerated in Article 1 Section 8

• State reserved powers (10th Amendment)

• Constitutional Basis for Federalism is 10th Amendment

• Concurrent Powers

  • Law enforcement, taxing, passing legislation, courts

McCulloch V. Maryland

I. Background

• Mculloch v. Maryland is a landmark Supreme Court case decided in 1819.

• The case involved a dispute between the state of Maryland and the Second Bank of the United States.

• Maryland imposed a tax on the bank, which the bank refused to pay.

II. Issue

• The main issue was whether the state of Maryland had the power to tax a federal institution like the Second Bank of the United States.

III. Arguments

• Maryland argued that the Constitution did not explicitly grant Congress the power to establish a national bank, and therefore, the bank was unconstitutional.

• Maryland also argued that the power to tax is the power to destroy, and the state had the right to tax any entity within its borders.

IV. Decision

• The Supreme Court, in a unanimous decision, ruled in favor of McCulloch and the Second Bank of the United States.

• Chief Justice John Marshall, writing the opinion, held that Congress had the implied power to establish a national bank under the Necessary and Proper Clause of the Constitution.

• The Court also held that Maryland's tax on the bank was unconstitutional because it interfered with the federal government's ability to carry out its functions.

V. Significance

• The decision established the principle of implied powers, expanding the scope of federal authority beyond the enumerated powers listed in the Constitution.

• It confirmed the supremacy of federal law over state law and limited the ability of states to interfere with federal institutions.

• The case set an important precedent for future interpretations of the Necessary and Proper Clause and the balance of power between the federal government and the states.

Gibbons v. Ogden

I. Background

• Date: 1824

• Location: United States Supreme Court

• Key players: Thomas Gibbons and Aaron Ogden

• Issue: Interstate commerce and the power of the federal government

II. Facts

• Ogden held a monopoly on steamboat navigation in New York waters, granted by the state of New York

• Gibbons, a competitor, operated steamboats between New York and New Jersey under a federal license

• Gibbons was sued by Ogden for operating without a state license

III. Arguments

• Ogden's argument: The state of New York had the authority to regulate commerce within its own borders

• Gibbons' argument: The federal government had the exclusive power to regulate interstate commerce under the Commerce Clause of the Constitution

IV. Decision

• Unanimous decision in favor of Gibbons

• Chief Justice John Marshall delivered the opinion of the Court

• Ruled that the Commerce Clause granted the federal government the power to regulate interstate commerce, including navigation

V. Significance

• Established the federal government's authority over interstate commerce

• Limited the power of states to regulate commerce within their own borders

• Set a precedent for future cases involving the Commerce Clause

• Laid the foundation for the development of a national economy

Dual Federalism (Layer Cake); 1930s - New Deal

• Federal and State authorities operate under equal jurisdiction within their own spheres of influence

• Concurrent Powers

  • Taxing, Legislation, Courts, Banks, Commerce

Cooperative Federalism (Marble Cake); New Deal - Great Society

• National, state and local units of government have overlapping responsibilities

• Looser interpretation of the Constitution--particularly with the Elastic Clause, Commerce Clause and Use of the Supremacy Clause

• MUTUAL GOALS

• Increased concurrent powers

• 16th amendment

• 17th amendment

Creative Federalism (Marble Cake); Great Society - 1960s

• National goals conflict with state goals

• I. Introduction to Creative Federalism (Marble Cake)

  • Definition: Federalism concept from the 1960s Great Society era

  • Aims to promote cooperation between federal government and states

  • Emphasizes shared responsibilities and joint decision-making

  II. Key Features of Creative Federalism

  A. Cooperative Federalism

  • Shifted from dual federalism to collaborative approach

  • Encourages federal-state partnerships to address societal challenges

  B. Grant Programs

  • Expanded federal grants-in-aid to states

  • Provides financial assistance for programs and initiatives

  • Aims to address social issues and promote economic development

  C. Flexibility and Innovation

  • Allows states more discretion in implementing federal programs

  • Encourages experimentation and innovation at state level

  • Recognizes regional differences and diverse state needs

  III. Impact of Creative Federalism

  A. Great Society Programs

  • Expanded federal involvement in education, healthcare, and urban development

  • Examples: Elementary and Secondary Education Act, Medicare, Model Cities Program

  B. Increased Federal Power

  • Strengthened federal government's role in policymaking

  • Led to growth in federal bureaucracy and regulations

Competitive Federalism (Marble Cake); 1960s - Present

• Devolution - returning powers to states

  • Driven by SCOTUS cases

  • Block grants (5-15)

• Explosion of conditions of aid and concurrent powers

• Explosion of mandates

  • Allows Federal government to exert power over reserved powers

• Federal mandates

  • 14th and 5th Amendment

  • 14th - Prohibits states from taking powers from ppl

  • 5th - Protects against National Government

Important Terms

• Block Grants

  • Broad-Based grants

  • States have flexibility

  • States choose where to direct the funding

• Categorical Grants

  • Narrowly tailored

  • States required to follow grant procedures

• Conditions of Aid

  • Criteria for aid

  • A condition which a state government must fulfill for taking federal funds

• Mandates

  • Civil Rights Policy and Environmental

  • Constitutional Basis for mandating policy

• General Revenue Sharing

  • Large sum of money to local government for any program they create

  • Few guidelines

  • Local government creates the programs

    • Different from Block: government creates the programs

• Mandatory Spending

  • Uncontrollable

  • 2/3 of budget

  • Comes from categorical grants

  • Paying interest on national debt

  • Entitlement programs

  • Social Security, Medicare, and required interest spending on the federal debt

• Discretionary Spending

  • Non-entitlement

  • Defense, education, health, transportation

  • 13 appropriation bills