1. What is Federalism?
Federalism is a form of government in which a constitution distributes powers between a central government and subdivisional governments, usually called states, provinces, or republics. Lower entities such as municipalities, towns, and districts are created by the states (or other subdivisional governments) and have no sovereign power of their own. The national and subdivisional governments both exercise direct authority over individuals.
Divides power between the national and lower level governments.
Each government has distinct powers that the other governments cannot override.
Examples: Australia, Brazil, Canada, Germany, India, Mexico, and the United States.

2. Alternatives to Federalism
Unitary Systems (centralized powers)
Confederate Systems (an alliance of sovereign nations)
Autocracy (dictatorship)
Oligarchy (rule by a small group)
Constitutional monarchy
Unitary System: Central government gives power to sub-national governments (counties, provinces, etc.).
Local governments typically have only those powers granted to them by the central government, rather than any reserved powers. Especially important is the central government’s role as provider of funds.
A Confederate System: Power is retained by local or regional governments. Example: The European Union

3. Government under the Articles of Confederation, 1781-1788
The confederation was a union of states in which the central government received power from the states and had no direct authority over the people.
In practice, it was unable to force states to pay the taxes they owed and remained a weak system of government.
The federal union is a union of people in which the national and state governments receive power from the people and exercise authority directly over them. Over time the federal government has entered more and more policy areas, increased its revenue advantages over the states, and become preeminent. However, in the last two decades there have been efforts to revive the relative importance of the states.

5. Government under U.S. Constitution (Federation): 1789 -

6. The Flow of Power in Three Systems of Government

7. Advantages of Federalism
Federalism checks the growth of tyranny
Federalism allows unity without uniformity
Federalism encourages experimentation
Federalism keeps government closer to the people
Training for national officials
More arenas for public participation
The authors of the Constitution wanted to combine a central government strong enough to maintain order with strong states.
The large geographical size of a country.
State governments have served as training grounds for national politicians and as laboratories in which new ideas can be tested.
Federalism allows for many political subcultures.

8. Federal Systems Advantages Disadvantages
Permits diversity and diffusion of power
Local governments can handle local problems better
More access points for political participation
Protects individual rights against concentrated government power
Fosters experimentation and innovation
Suits a large country with a diverse population
Makes national unity difficult to achieve and maintain
State governments may resist national policies
May permit economic inequality and racial discrimination
Law enforcement and justice are uneven
Smaller units may lack expertise and money
May promote local dominance by special interests
In 1787, federalism was a compromise between centrists who supported a strong national government and those who favored decentralization. Confederation was unsuccessful and unitary was impossible given the attachment to state governments.
Federalism has some advantages. First, U.S. citizens tend to connect federalism to freedom because any level can challenge any other level. Second, the nation is very diverse but federalism allows there to be differences on policy while also having the nation in common. Third, experimentation is possible in a federal system because states become laboratories of democracy. Fourth, leaders can cut their teeth on how to run governments at a lower level before they enter the national conversation. Finally, the number of levels allows citizens to be involved in their government as thousands of U.S. adults serve.
Federalism has some disadvantages. First, dividing power means that national problems are not responded to quickly – Katrina, 9/11 are examples of this problem. Second, citizens have a hard time holding elected officials accountable because it is hard to see who is responsible when things go well or go badly. Third, there is conflict across state lines. Finally, the more variation in policies there is, the more inefficient the system works.

9. Number of Governments in the United States
3,143
With about 89,000 separate governmental units in the U.S. today, it is no wonder that intergovernmental relations in the U.S. are so complicated. Actually, the number of school districts has decreased over time, but the number of special districts created for single purposes, such as water, sewage, flood control, has increased from only 8,000 during WWII to over 37,000 today.

10. Number of Governments
In America there are close to 89,000 governments.
About half of these units are school or other special districts, and many of the remaining governments are townships and municipalities.
there are over 3,000 counties
50 state governments and one federal government.

11. Quick Assessment 1) The advantages of federalism are that it
A) creates a unified governmental system
B) encourages experimentation
C) checks the growth of tyranny
D) All of the above D

12. A) with all of the systems of government
2) In a unitary system of government, a constitution places all governmental power
A) with all of the systems of government
B) with the central government
C) with the localities
D) with the state government B

13. An Expanding Nation
A great advantage of federalism and part of the genius and flexibility of our constitutional system—has been the way in which we acquired territory and extended rights and guarantees by means of statehood, commonwealth, or territorial status, and thus grew from 13 to 50 states, plus territories.

14. Admission of States to the Union
Louisiana Purchase
Florida
Texas
Oregon
Mexican Cession
Gadsden Purchase
Alaska
Hawaii
Philippines to1946
Puerto Rico
Guam
American Samoa
Canal Zone to 2000
U.S. Virgin Islands
Pacific Islands Trust Territory
- 1947

15. Admission of States to the Union

16. Formal Constitutional Framework
The national government has only those powers delegated to it by the Constitution
The national government is supreme
The state governments have residual powers; meaning those neither assigned to the national government nor denied to the states
Some powers are specifically denied to both the national government and the state government
The national government has the constitutional authority, stemming primarily from the national supremacy article, from its powers to tax and spend and to regulate commerce among the states, and from its war powers, to do what Congress thinks is necessary and proper to promote the general welfare and to provide for the common defense. These constitutional pillars have permitted tremendous expansion of the functions of the federal government.

17. The U. S. Constitution is the supreme law of the land
The U. S. Constitution is the supreme law of the land. It sets forth arrangements such as checks and balances, federalism, separation of powers, rule of law, due process, and the protection of individual rights.

18. Distribution of Power Set time, place, and manner of elections
(SHARED POWERS)
Set time, place, and manner of elections
Ratify amendments to the U.S. Constitution
Take measures for public health, safety, and morals
Exert powers the Constitution does not delegate to the national government or prohibit the states from using
Establish local governments
Regulate commerce within a state

19. Powers delegated to the National Government
Constitutional Division of Power
Powers delegated to the National Government
Express powers stated in the Constitution
Delegated powers
Implied powers that may be inferred from the express powers
Necessary & Proper Clause
Inherent powers that allow the nation to present a united front to foreign powers
Enumerated Powers:
Delegated Power are the Express Powers also referred to as the four Constitutional Pillars.
Implied Powers: allow the national government to make decisions that fall outside the expressed powers. The Necessary and Proper Clause
Inherent Powers: recognized by all sovereign nations.
The Constitution explicitly gives legislative, executive, and judicial powers to the national government – these are known as delegated powers. In addition, the national government has assumed implied powers stemming from the necessary and proper clause. For example, creating a national bank. Those powers specifically written down are also known as express powers.
In foreign affairs, the national government has inherent powers – the Supreme Court has declared these do not depend on constitutional grants but grow out of the very existence of the national government.

20. Delegated National Powers
National Supremacy
War Powers
The power to tax and spend
Federal Mandates
The power to regulate interstate commerce
Commerce Clause
Article VI of the Constitution mandates that actions by the national government are supreme. Any conflict between a legitimate action of the national government and a state will be resolved in favor of the national government.
Article VI is very clear that the Constitution of the United States overrides all other governments – states must abide. “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made … under the Authority of the United States, shall be the supreme Law of the Land.”
The national government is responsible for protecting the nation – this entails making war, as well as using technology to make successful war.
The commerce clause gives Congress the power to regulate all business activities that cross state lines or affect more than one state or other nations.
Congress can raise taxes and spend money for the purpose of promoting the general welfare. They grant money which then has stipulations attached – states then comply with federal guidelines to get the money. These are known as federal mandates.

21. Some Powers Reserved for the States
Constitutional Division of Power
Some Powers Reserved for the States
To create a republican form of government
To charter local governments
To conduct elections
To exercise all powers not delegated to the national government or denied to the states by the Constitution
According to the Tenth Amendment, all powers that were not delegated to the national government.
In theory states still retain all powers not delegated to the national government, but in reality the national government has expanded the scope of governmental action on a grand scale.
The 10th Amendment of the Constitution reserves for the states all powers not granted to the national government. Thus, any powers that are not exclusively given to the national or government the states can exercise as long as they do not conflict with national law.
Some powers are shared by both levels – taxing, law enforcement, etc. – and these are known as concurrent powers.

22. Some Concurrent Powers Shared by the National and State Governments
Constitutional Division of Power
Some Concurrent Powers Shared by the National and State Governments
To tax citizens and businesses
To borrow and spend money
To protect civil rights

23. Congressional authority extends to all commerce that affects more than one state. Commerce includes the production, buying, selling, renting, and transporting of goods, services, and properties. The "Commerce Clause" is Article I, Section 8, Clause 1 of the U.S. Constitution. It gives Congress the power "to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." These few words confer on the federal government a constitutional justification for regulating a very wide range of human activity since few, if any, aspects of today’s economy affect commerce only in one state.
The power to regulate interstate commerce allowed Congress to forbid discrimination like this in places of public accommodation in the 1964 Civil Rights Act.

24. Quick Assessment
1) Congress’s ability to control the production, purchase, sale, rent, or transport of goods, services, and properties stems from
A) the power to spend
B) the power to tax
C) the war power
D) the power to regulate interstate commerce D

25. 2) The power of congress to tax and spend money is an example of
A) an implied power
B) an express power
C) an inherent power
D) All of the above B

26. A) grant titles of nobility B) pass bills of attainder
3) The four constitutional pillars include 1) the supremacy clause, 2) the war power, 3) the interstate commerce clause, and 4) the power to
A) grant titles of nobility
B) pass bills of attainder
C) tax and spend for the general welfare
D) suspend the writ of habeas corpus C

27. C) States share all the powers delegated to the federal government.
4) Which statement best summarizes the role of the states in the constitutional division of power?
A) States have powers not delegated to the federal government, except those denied by the Constitution.
B) Within the scope of its operations, the national government is inferior to the states.
C) States share all the powers delegated to the federal government.
D) States have inherent powers over foreign affairs. A

28. Powers Denied to the States
Making treaties with foreign governments
Keeping troops or ships in time of peace
Authorizing private persons to prey on the shipping and commerce of other nations
Coining money, issuing bills of credit, or making anything but gold and silver coin legal tender in payment of debts
Taxing imports or exports
Taxing foreign ships
Engaging in war

29. Quick Assessment
1) State governments have historically been strong guardians against
A) segregation
B) discrimination
C) slavery
D) none of the above D

30. 2) State governments are A) stronger than ever
B) continuing to lose power
C) weaker than ever
D) irrelevant A
Police Power: In the U.S., most police power is reserved to the states.

31. B) decreased federal control C) increased federal regulation
3) State regulation of their economies have led some business interests to call for
A) state compacts
B) decreased federal control
C) increased federal regulation
D) none of the above C

32. Interstate Relations
Article IV of the Constitution attempts to resolve potential problems between states by stipulating the following:
Full faith and credit
Privileges and
immunities
Extradition
Interstate compacts
States must give full faith and credit to each other’s public acts, records, and judicial proceedings; extend to each other’s citizens the privileges and immunities it gives its own; return fugitives from justice and settle disputes with one another without the use of force, either via the Supreme Court or negotiations.
Three clauses in the Constitution require states to treat each other well.
Full faith and credit requires each state to recognize the civil judgments rendered by the courts of the other states and to accept their public records as valid.
Interstate privileges and immunities means that states must give citizens of other states the same treatment they give their own citizens.
Extradition means that a person who has fled one state will be turned over to the state from which he or she is fleeing.
Interstate compacts are the agreements between states to settle disputes – the Congress usually approves of these compacts.

33. Political Culture: Reflected in State’s Policies
States tend to have a more liberal or more conservative political culture, which is
reflected in their policies, whether for moral issues or other issues.

34. The "Full Faith and Credit Clause" is Article VI, Section 1, of the U
The "Full Faith and Credit Clause" is Article VI, Section 1, of the U.S. Constitution. This article maintains that state courts must enforce the judgments of courts in other states and accept their public records and acts as valid. This clause became controversial in 1998 when courts in Hawaii permitted same-sex marriages. With presidential support, Congress passed the Defense of Marriage Act, which relieved other states from any obligation to honor Hawaiian gay marriages.
Gay couples renew their vows to each other in this ceremony in San Francisco's Metropolitan Community church.
States must give full faith and credit to each other’s public acts, records, and judicial proceedings; extend to each other’s citizens the privileges and immunities it gives its own; and return fugitives from justice.

35. The Role of the Federal Courts: Umpires of Federalism
McCulloch v. Maryland (1819)
Gibbons v. Ogden (1824)
Federal Courts and the Role of States
The Great Debate: Centralists vs. Decentralists
The Decentralist Position - favor state or local action rather than national action.
The Centralist Position - favor national action over action at the state and local levels.
The Decentralist Position: Views the Constitution as a compact among states that gives the central government very little authority.
The Centralist Position: The central government should be denied authority only when the Constitution clearly prohibits it from acting.

36. The Great Debate The National Courts and Federalism Centralists
From the beginning of the Republic, there has been a debate about the proper distribution of powers, functions, and responsibilities—the two sides have literally fought over this debate—Civil War.
The Great Debate
Centralists
Abraham Lincoln, FDR
Reject the idea that the Constitution is an interstate compact
National government is the government of all the people
Decentralists
Antifederalists, Thomas Jefferson, Ronald Reagan
Constitution is a compact among sovereign states
National government should not interfere with activities of the states
Devolution revolution, states’ rights 36

37. Defining Constitutional Powers
The Supreme Court and the Role of Congress
McCulloch v. Maryland
Affirmed that the power of Congress is not strictly limited to the expressed powers. Marshall held that Congress has implied powers to carry out the expressed powers.
This case set the precedent for the national government to regulate a wide range of economic activities.
In 1819, the Supreme Court had the first of many chances to define the division of power. The Court ruled that a state cannot tax an instrument of the national government. Marshall found that there are implied powers that the national government can exercise. This ruling went a long way toward developing nationalism and unifying the national economy.
The Supreme Court has played a major role in the relationship between the states and the national government. From 1937 to the 1990s, the Courts had stepped back from protecting states from the federal government, but in the last 15 years, the Court has signaled it will intervene.
Mostly, it is important for students to note that the battles surrounding the creation of the country in the 18th century are not over.
© Bettmann /Corbis
Chief Justice John Marshall:
“Let the end be legitimate.”

38. Types of Federal Grants
In 1996 there was a shift from categorical grants to block grants
2 types of categorical grants:
Formula grants
Project grants
Block grants
Far more flexible
2007
in billions
$51.5
$95
$57.9
Category – Major Items
Health – medical assistance
Income Security – UI, retirement, welfare to work
Education – Elementary & Secondary schools, job training, foster care
Transportation – Highways
All Others: $21.8 Community & Regional renewal - Housing Urban Dev
$5.9 Natural resources & environment – Construct sewage treatment plants
$4.1 General government – collection of taxes
$0.7 Agriculture – crop insurance, animal & plant health programs
$0.9 Other – National defense, energy, veteran benefits, admin of Justice
$459.0 Total
The major instruments of federal intervention in state programs have been various kinds of financial grants-in-aid, of which the most prominent are categorical-formula grants, project grants, and block grants. The national government also imposes federal mandates and controls the activities of state and local governments by direct orders, cross-cutting requirements, cross-over sanctions in the use of federal funds, total preemption, and partial preemption.
$216.5
Purposes of Federal Grants to State and Local Governments

39. Where the Money Goes Categorical “Strings-Attached” Grants
Increase in Federal Aid to State and Local Governments Since 1950
Project Grants
Categorical “Strings-Attached” Grants
Block Grants
Federal Mandates
Formula Grants
Categorical-formula grants are those that are for a specific purpose (homeland security)—distributed to states based on population requiring states to pay for some of it, usually on a matching basis. These grants are tightly monitored.
Project grants are those that the national government support a specific activity (highway construction) —restricted to a fixed amount of time and can only be spent within tight guidelines.
Block grants are those that have fewer strings and less federal supervision—money comes down to states and the states use it as they see fit.
The national government is being the harshest to states when it uses unfunded mandates—the national government requires states to do things without providing money. The Unfunded Mandates Reform Act was passed in 1995 which required Congress to evaluate the impact of said mandates. This has resulted in restraining their use—since 1995, only 11 unfunded mandates have been used.

40. Utility of Federal Grants
To supply state and local governments with revenue
To establish minimum national standards for such things as highways and clean air
To equalize resources among states
To attack national problems yet minimize the growth of federal agencies
The national budget uses federal grants to get states to apply—Congress has deeper pockets than most wealthy states. These grants serve four purposes—the fourth of which is the most important.

41. Quick Assessment
1) Federal grants serve four purposes, one of which is to
equalize state revenues.
provide government with a way to levy more taxes.
supply the Supreme Court with revenue.
supply the state and local governments with revenue. D

42. B) categorical-formula grants C) project grants
2) Which type of federal grants "are allocated by formula and are subject to detailed federal conditions?"
A) block grants
B) categorical-formula grants
C) project grants
D) revenue-sharing grants B

43. B) special-funds grant C) project grant D) none of the above
3) If you are not a government agency but have a proposal for a program, you might apply for a
A) loan
B) special-funds grant
C) project grant
D) none of the above C

44. C) regulatory infringement D) line-item regulation
4) A rule or regulation handed down to the states without money attached is called
A) unfunded mandates
B) unitary government
C) regulatory infringement
D) line-item regulation A

45. Accomplishments of Federal Authority
Civil rights & the War on Poverty
Economic relief
States favor the status quo
Federal Grants to State and Local Governments: 1929, 1939, 2007
The Shift Toward Central Government Spending

46. The Politics of Federalism, a Republican Issue
The Growth of Big Government
The Devolution Revolution: Rhetoric Versus Reality
“New Federalism.” Beginning with President Richard Nixon (1969–1974), the Republican Party championed devolution, or the transfer of powers from the national government to the states. They called this policy federalism, a new use of the term.
Under current conditions liberals may have pragmatic reasons to support states’ rights in some instances, such as in gay rights issues.

47. A new survey from the Pew Research Center finds wide gaps in how different generations view politics.
Older voters (Silent) are more conservative, more angry at the government and less hopeful about the future of the country.

48. The Public’s View of the Role of Government
This graphics shows that Americans are split on whether the federal government is handling major issues satisfactorily. Overall, confidence in state governments has gone up while respect for national agencies has diminished, with one-third dissatisfied. However, more voters participate in congressional and presidential elections, and national affairs are more often on people’s minds than state and local politics.
Source: Washington Post, 2008

49. Quick Assessment 1) Americans trust in the federal government has
A) remained unchanged
B) grown in recent years
C) historically been low
D) declined in recent years D

50. 2) Those who favor state or local action rather than federal action are called
A) patriots
B) decentralists
C) confederates
D) unifiers B

51. 3) The "devolution revolution" refers to
A) reductions in the power of state governments
B) reductions in the value of the American dollar
C) a movement begun by 1974 to shift federal responsibilities to the states
D) none of the above C

52. The Future of Federalism
"Federalism has a dark history to overcome. For nearly two hundred years, states' rights have been asserted to protect slavery, segregation, and discrimination."
"One national dumb rule is better than 50 inconsistent rules of any kind," says a lawyer who represents trade groups in the food industries and medical devices.
Some evidence suggests that the anti-Washington sentiment "is 3,000 miles wide but only a few miles deep."
What do these statements say about Federalism and its future as the design for American democracy?
What will drive the demand for Federal action in the future?