Federalism Notes

Federalism: Forging a Nation

Federalism: National and State Sovereignty

  • Sovereignty: Supreme and final governing authority.
  • Systems that apportion governmental power:
    • Unitary system: The national government is sovereign.
    • Confederacy: The states alone are sovereign, as was the case in the United States under the Articles of Confederation.
    • Federalism: Sovereignty is shared by the national government and the states.

Unitary, Federal, and Confederate Relationships

  • Visual representation of power distribution in unitary, federal, and confederate systems.
    • Unitary System: Power flows from the central government to political units (state/local governments).
    • Federal System: Power is shared between the central government and political units.
    • Confederate System: Power flows from the political units to the central government.

The Argument for Federalism

  • Problems with a too-weak national government:
    • Public disorder.
    • Economic chaos.
    • Inadequate defense.
  • The new federal system would divide power among two levels: national and state.
    • Protect liberty.
    • Moderate the power of government.

The Powers of the Nation and the States (1)

  • Enumerated (expressed) powers: Power granted to the national government in the Constitution.
    • Seventeen powers including measures for a secure defense and stable economy.
    • Supremacy clause: National laws were the supreme law of the land.
  • Implied powers: Powers of the national government not expressly written but related to those listed.
    • “Necessary and proper” clause or elastic clause: power to make laws in support of enumerated (expressed) powers.
    • Examples: Railroads, banking, Veterans, environment, terrorism.
  • 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.
    • Peaked in the 1990s.

Federalism Since the 1930s (2)

  • Cooperative federalism: Shared policy responsibilities.
    • National, state, and local levels work together.
    • 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.