1. CH. 3 FEDERALISM
STUDENT NOTES

2. DEFINING FEDERALISM
Federalism: a system of government that divides power and sovereignty over a territory between two or more separate governments
Multiple levels of government make decisions for one population
The United States has three main tiers:
national government (1)
state governments (50)
local governments (87,000)

3. “Laboratories of Democracy”

4. CONSTITUTIONAL BASIS
Combined the features of a confederacy with features of a unitary government
DIVIDE THE POWER!
Single most persistent source of political conflict = national government and states
“national interest” v. “states’ rights”
Loose interpretation v. strict interpretation
Who has the right to legislate?

5. DECENTRALIZATION
Federalism decentralizes power: If no one person holds more power than another, than there is no room for abuse of that power. (Madisonian principle- Federalist #51)
Increased:
Political Participation/Public Involvement
Access/Decisions

7. IN COMPARISON
Unitary Governments: all power resides in the central government
Confederation: national government is weak and most or all power in hands of components (A of C)

8. FEDERALIST #51 Separation of powers to safeguard liberties
"Ambition must be made to counteract ambition.”
The only way to counteract the effects of factions is to have more factions

9. POWERS OF GOVERNMENT
Delegated Powers (enumerated powers) – powers given to Fed gov’t by Constitution
Reserved Powers – those not delegated to the national gov, reserved for states
Concurrent Powers – shared powers
Prohibited Powers – denied from both

10. Enumerated(delegated), reserved or concurrent
A tax is placed on products coming to the US from foreign countries
Money is given to repair state roads
A new stamp is designed to commemorate the signing of the Constitution
The government decides the border between two states will be a river
The value of money is established
Every driver of an automobile must have a license
There are rules and procedures for becoming an American citizen
Courts are established

11. RESERVED POWERS
10th Amendment: Those powers not delegated at National government are reserved to the states
Regulate trade within the state.
Provide welfare within the state.
Provide for the public health.
Determine qualifications of voters.
Establish a public school system.
Provide the public safety.
Conduct elections.
In charge of marriage laws.
Establish and maintain schools.

12. IMPLIED POWERS
"To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.”
(Article 1 Section 8 Clause 18)

13. McCULLOCH V. MARYLAND (1819)
Background
Bank of the US operated in Maryland
Maryland did not want BoUS to operate in state, competition unwanted, unfair
Maryland taxed the bank to put it out of business
McCulloch, BoUS employee, refused to pay the state tax
Is a Bank of the US Constitutional?
YES. The national gov’t has certain implied powers that go beyond delegated powers. US needs a national bank for borrowing, lending, holding minted money, all of which are delegated powers. “The power to tax is the power to destroy”
Can a state tax the federal gov’t?
NO. The federal gov’t is supreme. Since the BoUS is constitutional, only the feds may tax it.
John Marshall reaffirmed Supremacy Clause and Elastic Clause
-National (Federal) Gov gets STRONGER

14. COMMERCE CLAUSE
Art. I, Sec. 8, Cl. 3 – ‘The Congress shall have power - To regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”
Congress has used the elastic clause to stretch this power
What is commerce? “Buying and selling of goods and services.”

15. GIBBONS V. OGDEN (1824) BACKGROUND
Ogden received a state licensed monopoly to run a ferry across the Hudson River
Gibbons also saw the potential of the traffic between NJ and NY and obtained a federal license.
Ogden sued saying he had the valid state license, even though Gibbons had US license
Result – Gibbons won
Expanded national power in all areas of commerce law because nation overruled state in interstate trade issues
Fed Gov’t gets STRONGER

16. US V. LOPEZ (1995) Commerce clause quiz!!!
1995 – “Gun Free School Zone” law banned possession of a firearm within 1000 feet of a school, 12th grader Lopez carried a gun on to the property
Declared law unconstitutional – “nothing to do with commerce” – carrying a weapon through a school zone is too much of a stretch for “commerce”
LIMITED National government power

17. OPPOSING PERSPECTIVES
Liberal view – national government was superior and leading force in political affairs, since the people created it and its laws were the “supreme law of the land”
Conservative view – believed that “the people” were the ultimate sovereigns, and since the Constitution was a result of agreement among the states, the states were supreme over the national gov.

18. HISTORICAL FEDERALISM
Continuing dispute over division of power:
Dual Federalism
supremacy within own spheres
Cooperative Federalism
Expanded role of national government
Creative federalism – New Deal, Great Society
New Federalism
Financial power shift from federal to state control (fiscal federalism)

19. DUAL FEDERALISM
Nat’l and the states remain supreme within their own spheres. National and state DO NOT overlap
Federal government has jurisdiction only if the Constitution clearly grants such
Layer cake federalism

20. COOPERATIVE FEDERALISM
Nat’l and state governments share responsibility for public policies; national supreme
Share Costs
Federal Guidelines
Shared Administration
Marble cake federalism

21. FISCAL FEDERALISM
Fiscal Federalism: pattern of spending, taxing, and providing grants in the federal system
Federal government uses this power to enforce national rules and standards
Congress has two resources to work with when it comes to influencing states to do what it wants: authority and money $$$
Categorical grants
Block grants
Unfunded mandates

22. Fiscal Federalism
Defined: the pattern of spending, taxing, and providing grants in the federal system.
The major way the federal government has grown in power is through using money as a manipulator.
Federal aid makes up 25% of state and local governments and 16% of the federal budget.

23. GRANTS-IN-AID
Money paid from one level of government to another, 2 major types:
Categorical Grants - target specific purposes and “strings attached.” Very detailed
80% of all aid to state and local gov
Preferred by nat’l level
Formula and Project
Ensures state compliance and policy uniformity
Matching funds
Members of Congress receive credit when program target effective
Block Grants – given for broad, general purposes and allow more discretion on how the money is spent (ex. Welfare reform)
Preferred by governors
Most famous example is TANF – Temporary Assistance to Needy Families aka Welfare Reform Act

24. Categorical: Federal Highway Act
The money for the Interstate Highway and Defense Highways was handled in a Highway Trust Fund that paid for 90 percent of highway construction costs with the states required to pay the remaining 10 percent.
HEADSTART FOODSTAMPS MEDICAID

25. WELFARE ACT Temporary Assistance for Needy Families (TANF) 1996
Transferred the money to states as block grants
Strings attached: head of family must work or lose benefit; lifetime benefits limited to 5 years; unmarried mother < 18 only receive $ if stay in school and live with adult; immigrants ineligible for 5 years

26. MANDATES
A requirement that a state undertake an activity or provide a service
They have no choice! Different from grants!
Why would this cause a power struggle?
Often times the states or local gov’ts have to pay the bill of the mandate set by Congress OR it overturns existing state policy
States no longer have the RIGHT to monitor or legislate
Americans with Disabilities Act (1990)
Civil Rights Act of 1964

27. CIVIL RIGHTS ACT OF 1964
Outlawed discrimination based on race, sex, religion, national origin in schools, workplace, and public facilities

28. (Unfunded) Mandates
Direct orders to state governments to do something.
Specific policy requirements but does not provide a way to pay for activities
CONSEQUENCES: criminal or civil penalties or promises to cut off other, often unrelated, federal funds
Little to no funding by the federal government; all or most funding by the state governments.
Examples:
Clean Air Act
ADA

29. ADA Prohibits discrimination based on disability
Requires that buildings be made readily accessible to the handicapped
Compliance costs the states considerable sums of money
states must comply upon pain of financial penalties

30. CROSS-OVER SANCTIONS

31. NEW FEDERALISM DEVOLUTION REVOLUTION
Nixon-Reagan: give states more control
“Our Federalism” - power of the federal government is limited in favor of the broad
Idea that American federalism is strengthened by a partial shift in authority from the fed. Gov. to state and local gov.
powers reserved to the states.
Goal: lessen federal domestic spending and give the states more control over spending

32. NEW FEDERALISM Began w/ budgetary pressures in 80’s
Fed. assistance slowed
More block than categorical grants
States take on more financial burden for joint programs
States have more authority, BUT also bigger share of responsibility – programs under funded