Federalism in the US Government

Federalism: The Division of Power

Federalism is the sharing of power between national and state governments.
It is crucial to understand that federalism is not about the power of the federal government alone but about the balance between national and state powers.

To understand federalism, it is essential to grasp the relationship between state and national government power.

These are powers delegated by the Constitution solely to the federal government.
Example: Only the federal Congress can declare war.
- States cannot declare war, preventing potential conflicts like a state declaring war on another country.

These are powers kept by the states.
The Tenth Amendment justifies reserved powers:
- "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
Examples: policing, hospitals, and education.

These are powers shared by both national and state governments.
Example: Taxation
- Both federal and state governments withhold taxes from paychecks.

The sharing of power between national and state governments is not static; it shifts over time based on societal needs.

Fiscal federalism is a significant way federalism has been manifested, especially in the last century.
It involves Congress setting national standards and directing funds to states that comply, while withholding funds from those that do not.
This is often achieved through grants.

These grants provide federal money to states if they comply with specific federal standards.
Accepting the money means complying with the attached strings, where funds must be used as stipulated by the federal government.
Example: The Elementary and Secondary Education Act of 1965 increased federal control over public education by setting requirements for schools to receive federal dollars.
Categorical grants were used to align states with federal education and civil rights agendas.

Block grants were created to return some power to the states.
These grants provide money to states for broad categories with fewer strings attached than categorical grants.
States have more decision-making power in how to spend the money within those boundaries.
Example: Community Development Block Grant, where states decide what kind of community development to fund.
States generally prefer block grants due to the increased discretion in spending.

Mandates require states to follow federal directives.
In many cases, the federal government provides money to help states implement these mandates due to budgetary constraints.
Example: The Clean Air Act, which set national environmental standards and required states to comply with limits on carbon dioxide emissions, with federal funds provided for implementation.

These are federal directives that require states to comply without providing funds.
States strongly oppose unfunded mandates.
Example: The No Child Left Behind Act of 2001 required states to administer standardized tests and improve student scores, but schools had to fund the improvement programs themselves.

Starting in the 1980s the "Devolution Revolution" led to power being progressively returned to the states.
Unfunded mandates became rarer and Congress focused on block grants to give states more discretion in spending.
President Clinton signed the Unfunded Mandates Reform Act in 1995, limiting the federal government's ability to issue unfunded mandates.

Federalism involves the sharing of power between state and national governments.
The balance between state and federal power shifts over time, depending on the issues and needs of society.