1. The Federal System in the United States
Module 2.2: Powers & Limits of the US Federal Government

2. Basic Relationships in a Federal System
Vertical Federalism
Between strong states and a strong central government
Horizontal Federalism
Between and among the states
Most disputes in applying federalism focus on the Vertical relationship
Federal Gov’t
State A
State B
State C

3. Classes of Power in The United States
Enumerated
Express
Article 1 section 8, clauses 1-17, Amendment 16
Implied
Article 1 section 8, clause 18
Concurrent
compare federal constitution with state constitutions
Reserved
Amendment 10, 21
Denied (or prohibited)
To central government
Article 1.9, Amendments 1-8,13,15,19,24,26,27
To member states
Article 1.10, Amendments 13-15,19,24,26

4. Foundations McCulloch v. Maryland (1819)
Baltimore Branch of the Bank of the United States, a federal agency, shut down by Maryland tax collectors
Maryland claims concurrent power
To tax
To regulate commerce
SCotUS decision:
concurrent power does exist
BUT
States cannot tax federal government agencies
Recognizing this power would mean individual states could overwhelm and destroy federal government

5. Foundations Gibbons v. Ogden (1824)
Gibbons operates a Fulton steam ferryboat between NY and NJ with exclusive NY charter
Ogden obtains a license to operate boats in interstate waters from the federal government
Gibbons claims Ogden charter violates exclusive charter from NY
SCotUS decision:
US charters apply in states
Provided commerce crosses state lines
Sets stage for Dual Federalism

6. The Tension Preemption Devolution
The assumption of powers by central government
Legislative
Executive
Regulatory
Previously held by states
Reinforced by Supremacy Clause in Article 6
Devolution
The transfer of powers from central government
Return powers to states
Recognize reserved state powers
Reinforced by Amendment 10
Federal Gov’t
State A
State B
State C