Models of Federalism and Types of Grants

Duel Federalism- “Layer Cake” Emphasis on separate spheres of influence Each is separate and supreme within its own areas Tension over Cooperation

Cooperative Federalism- “Marble Cake” ’s Acknowledges the overlap between national and state powers Joint and cooperative, not separate Shared power

New Federalism 1972-? Started by Nixon as revenue sharing Revenue Sharing- money to the states, no strings attached Block Grants- distribute tax money to states for them to use in broad areas (11% today) Examples- health care, education, community development

Fiscal Federalism Regan’s Challenge to Nixon’s revenue sharing National government exercised control over the states Examples- drinking age, speed limits Categorical Grants- can only be used for a specific purpose, always rules and regulations attached (80% today) Project Grants- money to states for a specific purpose/project