3.1 Division of Powers

Introduction

  • U.S. federalism divides powers between federal and state governments, creating checks and balances.

  • Federalism balances decentralization (state-specific policies) and centralization (federal authority).

  • Federal government handles: printing money, regulating state laws, providing grants, mandates.

  • State governments handle: taxation, welfare eligibility, voting rules.

  • Federalism has structured U.S. government relationships since the late 1700s.

3.1 The Division of Powers – Learning Objectives

  • Explain federalism.

  • Understand constitutional logic of federalism.

  • Identify powers/responsibilities of federal, state, and local governments.

Federalism Defined and Contrasted

  • Federalism: two autonomous levels of government acting on behalf of the people under the national constitution.

  • Five common characteristics of federal systems:

    1. Two levels of government:

      • National: handles country-wide issues (defense, economy).

      • State: handles regional issues (education, health, safety).

      • Cooperation between levels is essential.

    2. Written national constitution: requires broad consent to amend (2/3 Congress + 3/4 states).

      • Example: ERA struggles illustrate difficulty of amendments.

    3. Allocation of powers: legislative, executive, judicial powers at both levels; some autonomy exists.

      • Federal courts resolve conflicts between levels.

      • Example: United States v. Wrightwood Dairy Co. expanded federal power over states.

    4. National courts as arbiters: resolve disputes, preserve or limit autonomy.

      • Example: immigration rulings.

    5. Subnational representation in national legislature:

      • U.S. Senate represents states equally (2 senators per state).

  • Other government structures:

    • Unitary system: central government dominant; subnational units dependent (e.g., France, Japan).

    • Confederation: decentralized; central authority depends on subnational consent (e.g., Articles of Confederation).

Federalism and the Constitution

  • Federal powers (Article I, Section 8):

    • Taxation, borrowing, commerce regulation, military, coining money, naturalization, postal service.

    • Elastic clause: “necessary and proper” for executing powers.

    • Commerce clause: broad interpretation expands federal authority.

  • State powers:

    • Reserved powers (Tenth Amendment): powers not delegated to federal gov. or prohibited to states.

    • States handle health, education, welfare, safety; concurrent powers include taxing, borrowing, lawmaking.

  • Restrictions on federal/state powers:

    • Federal: cannot suspend habeas corpus, pass bills of attainder, enact ex post facto laws.

    • States: cannot enter treaties, coin money, tax imports/exports; must uphold constitutional rights.

    • Fourteenth Amendment: guarantees due process and equal protection.

    • Civil rights amendments: 15th, 19th, 26th protect voting rights.

  • Supremacy clause (Article VI): federal law prevails over conflicting state laws.

    • Example: marijuana legalization conflict between federal and state laws.

  • State-to-state relations:

    • Full faith and credit clause: states recognize other states’ court decisions, public acts, contracts.

      • Example: marriage equality cases, DOMA, Obergefell v. Hodges.

    • Privileges and immunities clause: states cannot discriminate against out-of-staters (except some differences allowed).

    • States cannot restrict trade between states; taxation must be nondiscriminatory.

Distribution of Finances

  • Revenue (2014 data):

    • Federal: $3.2 trillion

    • States: $1.7 trillion

    • Local: $1.2 trillion

  • Key developments:

    • Sixteenth Amendment (1913): allows federal income tax, boosting revenue.

    • Federal grants: support state/local governments and encourage federal policy adoption.

  • Revenue sources (2020):

    • Federal: 47% individual income taxes, 38% payroll taxes.

    • States: 39% taxes, 25% federal support; sales tax 47%, income tax 38%, service charges 15%.

    • Local: property tax 72%, federal/state grants 30%, service charges (hospitals, utilities, tuition).

  • Intergovernmental grants: vital in economic downturns (e.g., Great Recession, COVID-19 pandemic).

    • COVID-19: CARES Act ($150B), American Rescue Plan ($1.9T, $350M to governments).

Government Spending

  • Federal (2019):

    • Social Security: 24%

    • Medicare/Medicaid/CHIP: 24%

    • Defense/security: 18%

    • Other: safety net programs 11%, debt interest 7%, retirees/veterans 8%, transportation 3%

  • State vs. Local spending:

    • Education: major category for both.

      • States: more on universities.

      • Local: more on K–12.

    • Local: more on police, fire, housing, utilities.

    • States: more on welfare, healthcare, highways.

    • Both: similar spending on judicial/legal services and corrections.