Federalism Chapter 3

Vocabulary 0 Block Grants -McCulloch v Maryland 0 Categorical grants -Unfunded mandates 0 Commerce clause 0 Competitive federalism 0 Cooperative federalism 0 Creative federalism 0 Devolution 0 Dual federalism 0 Fiscal federalsim 0 Funded mandates 0 New Federalism

Intro to Federalism 0 Federalism, the division of power between the federal government and state governments, has been a central and evolving feature of our system of government. 0 Advocates of a strong federal system believe that state and local governments do not have the sophistication to deal with the major problems facing the country. 0 Critics of a strong federal system point to the fact that local leaders are most sensitive to the needs of their constituents.

History of Federalism 0 The historical foundation of federalism was established through the writings in the the Federalist Papers and early Supreme Court decisions. 0 Read and summarize Federalist Papers No. 9 and No. 14

Dual Federalism 0 The Constitution provides for the rules of the federal system by giving delegated powers to the federal government and reserved powers to the states. 0 This dual federalism became the 1 st type of relationship for the U.S. 0 Dual federalism existed historically to 1930.

Dual Federalism

Layer Cake Federalism 0 Extension of dual federalism developed after the Civil War. 0 Federalism characterized by a national government exercising its power independently from state governments. 0 Constitutionally based and each level of government tried to exercise its own control over its own sphere of influence.

Layer Cake Federalism 0 After Civil War, federal government attempted to exert more of an influence on state governments. 0 Reconstruction dictated this approach. 0 Thirteenth Amendment abolished slavery 0 Fourteenth made the slaves citizens, guaranteeing equal protection of law 0 Fifteenth gave the freed slaves the right to vote

Marble Cake Federalism 0 With the onset of the New Deal, federalism could be classified as a marble cake. 0 Federal gov’t became more involved on local level (Agricultural Act, National Recovery Act, FDIC) 0 National government would provide the money; state governments would administer the programs.

Marble Cake Federalism 0 Cooperative federalism increased further during and after WWII. 0 Federals gov’t had to direct the citizens regarding essential services (rationing system). 0 Following the war, federal gov’t responded to the needs of returning solider=GI Bill of Rights.

Layer Cake vs. Marble Cake

Creative Federalism 0 Sharing the costs between national and state governments for programs that typically would fall under the purview of state control 0 Guidelines and rules set down by the federal gov’t in order for the states to reap the benefits of federally funded programs 0 Provides for dual administration of programs such as Medicaid, which has a shared approach financially ad administratively

Competitive Federalism 0 Nixon dubbed this “the new federalism” 0 Aim was to offer states pieces of the marble cake but to have them accept it with conditions and with a promise to develop programs on their own. 0 Stressed downsizing of the federal government and more reliance on revenue sharing and grants exception: FEMA

Fiscal Federalism 0 Development of federalism has been fiscal in nature-how much funding is appropriated by the federal gov’t to the states, under what conditions, and what the states can do with these funds. 0 Fiscal federalism can be classified in 3 major program areas: categorical grants, including project and formula grants, block grants, and revenue sharing 0 Through different grant programs, the marble cake is sliced into many different pieces, making it even more difficult to differentiate the functions of the levels of government.

Fiscal Federalism 0 Project grants and formula grants (have impact on nutrition programs, local community money) were reduced under Reagan and George H.W. Bush 0 Example of block grant: Welfare Reform under Clinton, which transferred welfare responsibility to states. 0 Federal grants/mandates force states to bow to the dictates of the federal government in order to get aid.

Short Answer Question 0 Analyze the impact of the Unfunded Mandates Law of 1994 on the states.

Future of Federalism deficit reduction became primary goal of President Clinton-became apparent that fiscal federalism and grant programs would be greatly affected by cutbacks in federal budget. 0 Some grants supported (based on specific federal requirements)

Future of Federalism 0 Move towards national educational standards. 0 Federal minimum wage standards 0 Future of Federalism seems unclear: Republican Contract with America signaled a return to a more traditional approach (welfare reform, balanced budget, downsizing gov’t)

Future 0 G.W. Bush: proponent of devolution, but federal gov’t grew during his term, passed Medicare Prescription Drug Act, federal budget increased, record deficits, recession. 0 Obama: favored massive gov’t spending, increased regulation of banking and housing industries