Lecture Notes on Federalism

Federalism is the organizational system of government in which power is divided between a central government and various state and local governments.
The structure involves three major forms of government organization:
- Federalism
- Unitary Government
- Confederation Government

Diverse Policies for a Diverse Population:
- Federalism allows for policy variation across regions, accommodating the needs of a diverse populace.
Minimizes Policy Conflict:
- Facilitated through interstate compacts, federalism aids in reducing conflicts over policy issues.
Closer to the People:
- Local governments can better understand and respond to their citizens.
Healthy Dispersion of Power:
- This dispersal creates more opportunities for citizen participation in governance.
Policy Innovation at State Level:
- States act as "laboratories" for democracy—testing new ideas and policies before broader implementation.
Training Ground:
- State and local levels serve as effective training grounds for future leaders in governance.
Privileges and Immunities Clause:
- Ensures that citizens are given the same rights across different states.

Absence of National Standards:
- Federalism can lead to inequities as states develop varying policy standards.
Potential for Undemocratic Interests Protection:
- The dispersion of power can lead to groups protecting specific interests that may oppose national trends.
Low Visibility and Information Flow:
- Many local governments operate with low visibility, leading to decreased accountability.
Diversity Drawbacks:
- The competition between states can lead to bad outcomes and 'race to the bottom' practices.

National Powers:
- Derived from the U.S. Constitution; includes obligations such as:
  - Protect states from invasion and violence.
  - Powers such as coin money, conduct foreign relations, regulate commerce, provide military forces, declare war, establish inferior courts, post offices, and make necessary laws (Supremacy Clause).
State Powers:
- Defined primarily by the Reservation Clause in the 10th Amendment. Powers include:
  - Legislating public health, safety, morals, criminal laws, and regulating elections.
Concurrent Powers:
- Powers shared by national and state governments:
  - Include taxing, borrowing money, making laws, chartering banks, spending for general welfare, and eminent domain.
Denied Powers:
- Certain powers are explicitly denied to all levels of government, including:
  - Bill of Attainder: Laws that declare a person guilty without a trial.
  - Ex Post Facto Laws: Laws that punish individuals for actions taken before the laws were enacted.

Marshall Court decisions set precedents for federalism.
McCulloch v. Maryland (1819): Affirmed federal supremacy over state laws.
Nullification: Concept that states could invalidate federal laws.
Preemption: Federal laws take precedence over state laws.
The Civil War Amendments expanded federal power to enforce national standards:
- 13th Amendment: Abolished slavery.
- 14th Amendment: Introduced the Due Process and Equal Protection Clauses.
- 15th Amendment: Granted voting rights to former male slaves.

Distinct separation of powers between the national and state governments.
Each level is supreme in its jurisdiction, representing a state-centered view.
Notable cases like the Dred Scott decision (1857) illustrate this division.
Dual Federalism effectively ended in the 1930s as federal intervention increased.

Also known as Marble Cake Federalism:
- Characterized by overlapping responsibilities and collaboration between national and state authorities for problem-solving.
- Provides shared power and responsibility, with accountability for failures often distributed among levels.

Fiscal Federalism describes how national funds are allocated to lower levels of government:
- Categorical Grants: Provided for specific purposes with conditions attached (e.g., highway funding).
- Program Grants: Narrow in focus and associated with time-limited initiatives.
- Block Grants: Flexible funding with minimal restrictions.
- Formula Grants: Money dispersed based upon predetermined criteria.
- Unfunded Mandates: Requirements that states must meet without accompanying federal funding, leading to coercive situations (e.g., conditions to receive highway funds).

Cutthroat Competition:
- States may engage in aggressive competition to attract businesses, which can lead to negative outcomes.
Not differentially beneficial; could result in a 'race to the bottom' wherein states lower their standards excessively to compete for investment.