1. Civil War to the New Deal
History of Federalism
Civil War to the New Deal

2. Civil War
Issue of slavery led to the dispute over states rights and the supremacy of the national government.
Violent climax to the Federalist and Anti-Federalist debate prior to ratification.
WHO HAS THE POWER?

3. Back to State’s Rights
Marshall Court had greatly increased the power of the Federal Government
During Andrew Jackson administration – shift back to state’s rights
Nullification Crisis – South Carolina attempted to nullify a federal law
State should have ultimate authority over its citizens
Attempt failed with passage of Force Bill by Congress
Over Issue of slavery Southern states repealed their ratification of the Constitution

4. War and Big Government
Civil War ended the idea that a state could secede from the Union
Desire to increase State’s rights by the South increased the political power of the federal government!

5. The War Effort
All wars have increased the size of the federal government
1865 saw the first billion dollar budget
$1.3 billion equal to $18 billion today
First temporary income tax imposed on Americans to help pay for war effort.

6. Civil War Amendments
Bedrock constitutional principle prior to the War was federal government should not interfere with slavery.
13th Amendment – abolished slavery
14th Amendment – defined who was a citizen
“no state shall deprive any person of life, liberty, or property, without the due process of law; nor deny any person within its jurisdiction the equal protection of the laws”
Applied the Bill of Rights to the states
15th Amendment – gave all black men the right to vote

7. Civil War
Established the supremacy of the Federal government over the states
States could not secede from the Union.
DID NOT END THE DEBATE OVER THE DIVISION OF POWERS BETWEEN THE NATIONAL GOVERNMENT AND THE STATES.

8. Dual Federalism
Doctrine that emphasizes a distinction between national and state spheres of national authority.
Nation and state are co-equal sovereign powers
Neither should interfere in other’s sphere

9. Dual Federalism Revival of state’s rights after the Civil war
Accurate model of the prewar federal-state relations
Civil War reduced influence of SCOTUS
Dred Scott Case
Southern Reconstruction exempted from judicial review
Article III. Section 2, Clause 2
“Supreme Court shall have appellate jurisdiction….with such exceptions, and under such regulations as the Congress shall make.”

10. Supreme Court
Reestablished itself as legitimate constitutional umpire.
Supported dual federalism
Supported states’ rights
Limited the powers of the federal government

11. New Deal on Federalism?
Dual federalism receded into background during Great Depression.
With election of Franklin Roosevelt – Americans expected federal government to do something!
FDR’s New Deal
Massive new government programs to deal with economic activity
Massive new government programs to combat effects of unemployment and the poor.
SCOTUS – holding to dual federalism declared programs to be unconstitutional.

12. Court Packing Scheme
To overcome SCOTUS – FDR attempted to add more justices to court .
Congress rejected plan
Over time – swing vote moved to support programs
By 1945 – FDR had appointed eight of the nine justices
New justices supported FDR’s views
After 1937 – Court ceased to attempt to limit federal government’s power under the Commerce clause.

13. Cooperative Federalism
Since 1937 –era of cooperative federalism
Defined as the states and national government cooperating in solving complex common problems

14. Cooperative Federalism
Aid to Families with Dependent Children (AFDC)
Welfare program established in the New Deal
Temporary Assistance to Needy Families (TANF)
National government funded
States free to establish rules
States had to conform to regulations established by federal government.

15. Federal Grants Land grants issued early history and used to fund:
Education
Building of canals, railroads, and roads.
20th century cash grants began during Great Depression to fund:
Pollution control
Roads
Recreation
Types: Categorical and block

16. Federal Grants
Categorical: A federal grant for a specific program or project
Medicaid
Housing assistance
Welfare programs
$580 billion given to the states
Heavy restrictions and regulations attached

17. Federal Grants
Block Grants: funds provided for a general functional area, such as mental health or criminal justice
Congress favors categorical grants because they can be targeted to congressional priorities.

18. Fiscal Federalism
Fiscal – means having to do with government revenue or expenditures
Fiscal Policy is policy concerning taxing, borrowing and subsequent spending
Fiscal federalism refers to money raised on one level and spent on another –
20% of state revenue comes from the federal government.
Carrot and Stick tactics –
Drinking age attached to federal highway funds
Education grants attached to No Child Left Behind

19. Federal Mandates
Federal legislation requiring states to do ___________.
Unfunded Mandate Act 1995 requires Congressional Budget Office to cost mandates in excess of $50 million
Cost of unfunded mandates $29 billion per year

20. Competitive Federalism
Competition among states because of differences in now they use grants
Favorable business climate
Low taxes, good roads, well educated population
People want ample government services but don’t want to pay for it through taxes.

21. Summary Questions
Summarize the impact of the U.S. Civil War and President FDR's New Deal on the historical development of federalism.
Define cooperative federalism, and discuss its impact on the states.