1. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3

2. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-2 Federalism: National and State Sovereignty Three types of systems that apportion governmental power 1. Unitary: national government is sovereign 2. Confederacy: states are sovereign 3. Federal system: national government and states share power

3. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-3 Federalism: National and State Sovereignty The argument for federalism Authority divided into two levels: national and state Protects liberty Moderates government power by sharing Strengthens the union Promotes more responsive government

4. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-4 Federalism: National and State Sovereignty The powers of the nation and states National: enumerated powers Seventeen powers, including measures for secure defense and stable commerce Supremacy clause National: implied powers “Necessary and proper” = “elastic” clause: make laws in support of enumerated powers

5. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-5 Federalism: National and State Sovereignty The powers of the nation and states Tenth Amendment established reserved powers: powers not delegated to the national government are reserved for the states

6. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-6

7. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-7 Federalism in Historical Perspective An indestructible union (1789–1865) The nationalist view: McCulloch v. Maryland (1819); clear ruling in favor of national power and the supremacy clause The states’ rights view: the Dred Scott decision (1857); ruling for states rights in conflict over legality of slavery The Civil War settled the issue in favor of national authority

8. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-8 Federalism in Historical Perspective Dual federalism and laissez-faire capitalism (1865–1937) Dual federalism: separation of national from state power The Fourteenth Amendment interpreted to give states much discretion Judicial protection of business: Supreme Court limited national power to regulate business and industry National authority prevails as the Supreme Court eventually approves Franklin Roosevelt’s New Deal economic and social programs

9. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-9 Contemporary Federalism Interdependency and intergovernmental relations Cooperative federalism: shared policy responsibilities National, state, and local levels work together Joint funding, administration, and determination of programs

10. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. Federal, State, and Local Shares of Government Tax Revenue

11. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-11 Contemporary Federalism Government revenues and intergovernmental relations Fiscal federalism: federal funds used for state programs Grants-in-aid: cash payments to states and localities Categorical grants: federal funds restricted to certain state programs Block grants: federal funds for state programs addressed to a general concern

12. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-12

13. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. Federal Grants-in-Aid to the States

14. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-14 Contemporary Federalism Devolution: the idea that American federalism can be strengthened by a partial shift of power from national government to states Belief held more strongly by Republicans than Democrats Dramatically increased with Republican Revolution of 1994 Supreme Court has advanced devolution, especially in latter decades of twentieth century Devolution movement ended with presidency of George W. Bush: education and security policy

15. © 2015 The McGraw-Hill Companies, Inc. All rights reserved. 3-15 The Public’s Influence: Setting the Boundaries of Federal-State Power Roosevelt’s “New Deal”—jobs during the Great Depression Lyndon Johnson’s “Great Society”—increased social services in 1960s Republican Revolution—rolled back federal authority in 1990s