1. Government in America: People, Politics, and Policy
Thirteenth AP* Edition
Edwards/Wattenberg/Lineberry
Chapter 3
Federalism
Pearson Education, Inc., Longman © 2008

2. Bellringer 2/13 The Tenth Amendment
A. declares that the national government is superior to the state in every concern
B. establishes the Constitution, laws of national government, and treaties as the supreme law of the land
C. establishes the Supreme Court as the final arbiter in all civil and criminal disputes
D. establishes the number of electoral votes each state can cast in the electoral college
E. states that powers not delegated to the United States by the Constitution nor prohibited by the states, are reserves for the states

3. Pearson Education, Inc., Longman © 2008
Defining Federalism
What is Federalism?
Federalism: a way of organizing a nation so that two or more levels of government have formal authority over the land and people.
It is a system of shared power between units of government.
Intergovernmental Relations: the workings of the federal system- the entire set of interactions among national, state and local governments
Pearson Education, Inc., Longman © 2008

4. Pearson Education, Inc., Longman © 2008
Defining Federalism
What is Federalism?
Unitary governments: a way of organizing a nation so that all power resides in the central government
State with respect to their local governments
Confederation: then national government is weak, and most or all of the power is in the hands of the components.
Pearson Education, Inc., Longman © 2008

5. Pearson Education, Inc., Longman © 2008
Defining Federalism
Pearson Education, Inc., Longman © 2008

6. Defining Federalism Why Is Federalism So Important?
Allows the national government to be concerned with broader issues affecting the whole country and local governments with issues affecting citizens' daily lives.
National: foreign policy, interstate matters, immigration
Local: motor vehicles, garbage, education
Decentralizes our politics
Senators representatives of state not nation
On election day there are 51 presidential elections
More opportunities to participate

7. Defining Federalism Why Is Federalism So Important?
Decentralizes our policies – who controls the policy and what should it be?
Who should regulate abortion, determine speed limits, drinking age?
General areas covered by each level
Federal: economy, environment, equality
States: social, family, and moral issues.
States can solve in different ways

8. The Constitutional Basis of Federalism
The Constitution does not specifically state the term “federalism.”
Although favored a stronger national government, the framers still made states of vital importance.
The powers of the federal and state governments were defined.
Pearson Education, Inc., Longman © 2008

9. The Constitutional Basis of Federalism
The Division of Power
Supremacy Clause, Article VI:
U.S. Constitution, laws of Congress, and treaties are supreme
Yet, national government cannot usurp state powers.
10th Amendment: powers not delegated to the US by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or the people.
11th Amendment: prevent suits against states and officials

10. The Constitutional Basis of Federalism
Pearson Education, Inc., Longman © 2008

11. The Constitutional Basis of Federalism
Establishing National Supremacy
Implied and enumerated powers
McCulloch v. Maryland (1819)
Necessary and Proper Clause
Commerce Powers
Gibbons v. Ogden (1824)
The Civil War ( )
The Struggle for Racial Equality
Brown v. Board of Education (1954)
Pearson Education, Inc., Longman © 2008

12. The Constitutional Basis of Federalism
States’ Obligations to Each Other
Full Faith and Credit: Each state must recognize official documents and judgments rendered by other states.
Article IV, Section I of Constitution
Privileges and Immunities: Citizens of each state have privileges of citizens of other states.
Article IV, Section 2 of Constitution
Extradition: States must return a person charged with a crime in another state to that state for punishment.
Pearson Education, Inc., Longman © 2008

13. Bellringer 2/14
The terms “fiscal federalism” and “cooperative federalism” refer to situations in which
A. the federal government completely dominates state and local governments.
B. states are forbidden any activity that has not been specifically approved by the Supreme Court.
C. the federal judiciary uses its power of judicial review to ensure congressional dominance over state legislatures
D. state, municipal, and local income taxes are pooled by special agreement and redistributed in accordance with individual need.
E. federal, state, and local governments work together to complete a project, with the federal government providing much of the project funding.

14. Intergovernmental Relations Today
There has been a transformation in American federalism.
There has been a gradual shift from dual to cooperative federalism.
Pearson Education, Inc., Longman © 2008

15. Stages of Federalism
There have been four stages of federalism throughout American history.
1. “Dual Federalism”
2. “Cooperative Federalism”
3. “Regulated Federalism”
4. “New Federalism”

16. Intergovernmental Relations Today
Dual Federalism
a system of government in which both the states and the national government remain supreme within their own spheres, each responsible for some policies
Like a layer cake
Federal: foreign policy, postal system, monetary policy
State: school, law enforcement, road building
Narrowly interpreted powers of federal government
Ended in the 1930’s
Pearson Education, Inc., Longman © 2008

18. Intergovernmental Relations Today
Cooperative Federalism
Definition: a system of government in which powers and policy assignments are shared between states and the national government
Like a marble cake – mingled responsibilities and blurred distinctions
Shared costs, administration and federal guidelines
Federal Highway Act of 1956
The New Deal’s Federal relief and recovery programs resulted in greater involvement by the federal government in the local level.
National Industrial Recovery Act
FDIC
Aid to Family with Dependent Children
Pearson Education, Inc., Longman © 2008

19. Pearson Education, Inc., Longman © 2008

20. Intergovernmental Relations Today
Regulated Federalism/Creative Federalism
As state and local governments came to depend on federal support, the national government further intervened.
Clean Air Act
Civic Rights Act
Federal aid led to federal control
Use of categorical grants
Federal mandates direct states or local governments to comply with federal rules by penalty or to receive funds
Unfunded mandates

21. Intergovernmental Relations Today
New Federalism: Devolution
Embodies the idea that federalism is strengthened by a partial shift in authority from federal to state and local government
Budgetary pressure and public opinion
Deficits may require state and localities to pay a larger share of joint programs
Republican Revolution
Reduce unfunded mandates and increased block grants
Pearson Education, Inc., Longman © 2008

22. Intergovernmental Relations Today
Fiscal Federalism
The pattern of spending, taxing, and providing grants in the federal system
Pearson Education, Inc., Longman © 2008

23. Intergovernmental Relations Today
Pearson Education, Inc., Longman © 2008

24. Intergovernmental Relations Today
Grants-in-aid: federal funds appropriated by Congress are the main instrument the national government uses for aiding and influencing states and localities.
Two main types: Categorical and Block
Catalogue of Federal Domestic Assistance
Pearson Education, Inc., Longman © 2008

25. Intergovernmental Relations Today
Fiscal Federalism: Categorical Grants
Categorical Grants: federal grants that can be used for specific purposes; grants with strings attached and often requiring matching funds
Strings: nondiscrimination, meet union wages, environmental impact statement
Crossover sanctions and crosscutting requirements
Two types:
Project Grants: based on merit
Formula Grants: amount varies based on formulas
Pearson Education, Inc., Longman © 2008

26. Intergovernmental Relations Today
Fiscal Federalism: Block Grants
Block Grants: federal grants given more or less automatically to support broad programs such as community development
Revenue sharing: federal government gives money to the states with no restrictions for matching funds and freedom to spend on any government purpose
Pearson Education, Inc., Longman © 2008

27. Pearson Education, Inc., Longman © 2008

28. Understanding Federalism
Advantages for Democracy
Increases access to government
Local problems can be solved locally
Hard for political parties or interest groups to dominate all politics
Disadvantages for Democracy
States have different levels of service
Local interest can counteract national interests
Too many levels of government and too much money
Pearson Education, Inc., Longman © 2008

29. Understanding Federalism
Pearson Education, Inc., Longman © 2008

30. Understanding Federalism
Federalism and the Scope of Government
What should the scope of national government be relative to the states?
National power increased with industrialization, expansion of individual rights, and social services.
Most problems require resources afforded to the national, not state governments.
Pearson Education, Inc., Longman © 2008

31. Understanding Federalism
Pearson Education, Inc., Longman © 2008

32. Pearson Education, Inc., Longman © 2008
Summary
American federalism is a governmental system in which power is shared between a central government and the 50 state governments.
The United States has moved from dual to cooperative federalism; fiscal federalism.
Federalism leads to both advantages and disadvantages to democracy.
Pearson Education, Inc., Longman © 2008