Enumerated Powers include the power to: to lay and collect taxes; pay debts and borrow money; regulate commerce; coin money; establish post offices; protect patents and copyrights; establish lower courts; declare war; and raise and support an Army and Navy.
The Powers of the Nation and the States (2)
Reserved powers: The states’ powers under the Constitution.
Tenth Amendment: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States.”
Nationalization: The gradual shift in power from the states to the national government
Federalism as a Governing System: Examples of National, State, and Concurrent Powers
The American federal system divides sovereignty between a national government and the state governments.
Each is constitutionally protected in its existence and authority, although their powers overlap somewhat even in areas granted to one level (e.g., the federal government has a role in education policy).
Federalism in Historical Perspective
Ambiguities in the Constitution have contributed to conflict between nation and states.
Interstate commerce and intrastate commerce.
Federalism has progressed through three historical eras that each ended with a national government stronger than before.
An Indestructible Union (1789–1865)
Nationalist view:McCulloch v. Maryland (1819), a clear ruling in favor of national power and the supremacy clause when the Court allowed Congress to charter a bank.
In response, Maryland determined to tax all banks not chartered by the state… the federal bank refused to pay.
States’ rights view: The Dred Scott v. Sanford decision (1857), a ruling for states’ rights in conflict over the legality of slavery.
The Civil War would, by force, settle the issue in favor of national authority.
Dual Federalism and Laissez-Faire Capitalism (1865–1937) (1)
Dual federalism: Precise separation of national and state authority was both possible and desirable.
The Supreme Court held firm to the idea that neither level of government could substantially regulate business.
The Fourteenth Amendment (1868) was intended to protect newly freed slaves from discriminatory action against liberties and rights; but over time, it was interpreted to give the states discretion.
Plessy v. Ferguson (1896) introduced “separate but equal”.
Dual Federalism and Laissez-Faire Capitalism (1865–1937) (2)
After the Civil War, the Supreme Court gave nearly free rein to business.
The Constitution’s commerce clause gives Congress the power “to regulate commerce” among the states [not within a state] but does not spell out the activities included in the grant of power.
Dual Federalism and Laissez-Faire Capitalism (1865–1937) (3)
National authority ultimately prevailed, as the Supreme Court approved Franklin Roosevelt’s New Deal beginning in 1933 economic and social programs…
Civilian Conservation Corps.
Civil Work Administration.
Federal Emergency Relief Administration.
Tennessee Valley Authority.
Federalism Since the 1930s (1)
Dual federalism is no longer an accurate description; there's been a long-term expansion of national authority.
President Lyndon B. Johnson’s 1960s Great Society included more than 60 programs.
The national government now operates in many policy areas once within the control of states and localities.
A more recent development: devolution, the attempt to “pass down” authority to the state and local levels in selected areas.
Joint funding, administration, and determination of programs.
Example: Medicaid.
The states have retained traditional authority in certain areas such as education, health, public safety, and roadways.
Fiscal Federalism
Fiscal federalism: Federal funds are used for state and local programs.
Grants-in-aid: Cash payments to states and localities.
“Roughly one in every five dollars spent by local and state government in recent decades has been raised not by them but the federal government.” - Patterson
Categorical grants are federal funds restricted to certain state programs (Head Start, Medicaid, education).
Block grants (fewer strings attached) are federal funds for state programs addressed to a general concern -- community development and law enforcement
Federal, State, and Local Shares of Government Tax Revenue
The federal government raises as much tax revenues as do all state and local governments combined.
Federal Grants to State and Local Governments
Federal aid to states and localities has increased dramatically since the 1950s.
The large recent increase is attributable to grants to states and localities to fund their response to the COVID-19 pandemic.
How the 50 States Differ: Federal Grants-in-Aid to the States
Federal assistance accounts for a significant share of general state revenue.
New Federalism and Devolution
Devolution: The idea that American federalism can be strengthened by a partial shift of power from the national government to state and local governments.
Belief held more strongly by Republicans than Democrats.
Dramatically increased after the Republican victories of 1994.
The most sweeping change was seen in the Welfare Reform Act, passed in 1996.
Changed the system of providing public welfare in the U.S.
The federal legislation is that individuals leaned on forcing individual responsibility for becoming self-sufficient.
The movement waned with the attacks of 9/11 and creation of the Department of Homeland Security; and with the passage of the Affordable Care Act in 2010.
Federalism in Dispute
Republican efforts in the 1980s and 1990s shifted some power back to the states and slowed growth of federal grants but did not reverse the long-term trend toward national power.
The establishment of the Affordable Care Act during Democratic president Barack Obama’s term was one of the largest expansions of federal authority since the 1960s.
The election of Democrat Joe Biden in the 2020 presidential election continued the tug-of-war between Republicans and Democrats.
The Public’s Influence: Setting the Boundaries of Federal–State Power
Major changes in federalism have been driven by shifts in public support to one level of government or the other…
Roosevelt’s “New Deal”—jobs during the Great Depression.
Lyndon Johnson’s “Great Society”—increased social services in the 1960s.
Republican Revolution—rolled back federal authority in the 1990s.