chapter three federalism. copyright © houghton mifflin company. all rights reserved.3 | 2 chapter...

Chapter Three

Federalism

Copyright © Houghton Mifflin Company. All rights reserved. 3 | 2

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Chapter Objectives• Explain the difference between federal and centralized

systems of government, and give examples of each.• Show how competing political interests at the

Constitutional Convention led to the adoption of a federal system that was not clearly defined.– Like a teakettle, relieving pressure especially for

minority interests• Outline the ways in which national and state powers

have been interpreted by the courts.– McCullough v. Maryland, Wicker v. Fillburn,

Concept of selective incorporation



• Why have federal grants-in-aid to the states been politically popular? What have proven to be their pitfalls?

• Distinguish between categorical grants and block grants.• Distinguish between mandates and conditions of aid with

respect to federal grant programs to states and localities. • To what extent have federal grants to the states created

uniform national policies comparable to those of centralized governments.

• The “devolution revolution.” What are the implications for citizens as taxpayers and as clients of government programs?


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Governmental Structure

• Federalism: a political system where local government units can make final decisions regarding some governmental activities and whose existence is protected

• Unitary System: local governments are subservient to the national government



Figure 3.1: Lines of Power in Three Systems of Government


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Positives and Negatives of Federalism

• Negative view: Federalism blocks progress and protects powerful local interests

• Positive view: Federalism contributes to governmental strength, political flexibility, and fosters individual liberty– Federalist #10: small political units allow all

relevant interests to be heard– Federalism increases political activity


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Federalism: A Bold New Plan

• No historical precedent• Tenth Amendment was added as an

afterthought to clarify the limits of the national government’s power

• Elastic language in Article I: Necessary and Proper Clause expands federal power

THEME A: WHO GOVERNS WHAT? FEDERALISM AND CONSTITUTIONAL LAW


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.McCulloch v. Maryland

• Could Congress charter a national bank?– Yes, even though this power is not explicitly in the

Constitution • IMPLIED POWERS (Whatever is “necessary and proper”)

• Could states tax the national bank? – No, because “the power to tax is the power to destroy”

• NATIONAL SUPREMACY (states can’t interfere with constitutional activities of federal gov’t)

• Nullification– Does the federal gov’t have the right to declare state laws

unconstitutional? Yes. (14th Amendment)– Settled by the Civil War.


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Wicker v. Filburn


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Federalism Over Time

• Dual federalism: Both national and state governments are supreme in their own spheres, which should be kept separate– Particular state issues: law enforcement and education

• Hard to make distinctions between state and federal spheres; distinctions between them were blurred

• But Supreme Court has strengthened states’ rights in several recent cases– US v Lopez--guns in schools– US v Morrison--Violence Against Women Act– Printz v. US--background checks on gun purchasers



THEME A: DISCUSSION QUESTIONS• Historically power has flowed to the central government.

What reasons exist for the states to continue exercising independent power? Given the Supreme Court’s decision in McCulloch, what prevents the central government from assuming legal authority over any area of public policy?

• Why doesn’t the federal government always intervene when states defy its authority?

• Certain areas in Nevada permit prostitution, nine states have legalized the use of marijuana for “medical purposes”; Massachusetts has legalized same-sex marriage. Could the federal government legally intervene to forbid such practices in these states? Explain why or why not?


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.WHO GOVERNS NOW?

THE CONTEMPORARY POLITICS OF FEDERALISM



Grants in Aid: “Fiscal” Federalism

• Dramatically increased in scope in 20th

century (especially 1960s)– Grants were a way for federal government to

circumvent strict constructionist reading of federal power.

– Grants were attractive to state officials for various reasons

– Required broad congressional coalitions with wide dispersion of funds, because every state had incentive to seek grant money


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Categorical Grants v. Revenue Sharing

• Categorical grants for specific purposes defined by federal law; often require local matching funds

• Block grants (sometimes called special revenue sharing or broad-based aid) devoted to general purposes with few restrictions—states preferred block to categorical grants

• Revenue sharing (sometimes called general revenue sharing) requires no matching funds and can be spent on almost any governmental purpose



Figure 3.2: The Changing Purpose of Federal Grants to State and Local Governments

Why the change?

Budget of the U.S. Government, Fiscal Year 2005, table 12.2.



Figure 3.3: Federal Grants to State and Local Governments, 1984-2004

Budget of the U.S. Government, Fiscal Year 2002, Historical Tables, table 6.1, and Budget of the U.S. Government, Fiscal Year 2005, table 12.1.


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Categorical Grants

• Given by gov’t for specific purposes– Often require matching funds

• Examples: Medicaid, AFDC (welfare)• “Cross-over sanctions”

– Federal highway funds• “Cross-cutting requirements

– Must extend to all federally-funded activities• States complain about restrictions


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Block Grants

• “New Federalism” (Reagan)• Combine several categorical grants into

one• Give Congress less control over how

money is used• Can be victims of “creeping categorization”• Example: shift from AFDC to TANF


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Federal Aid and Federal Control

• Conditions of aid: rules that state what governments must do if they wish to receive grant money

• Mandates: federal rules that states or localities must obey, generally have little or nothing to do with federal aid– Civil rights– Environmental protection – Example: Americans with Disabilities Act

(1990) (an “unfunded” mandate)


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.The Devolution Revolution

• Devolution initiatives returned program management to the states, with some federal guidelines, but there is no guarantee of federal support

• Block grants fund entitlements


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.The Devolution Revolution

• Devolution proponents harbor a deep-seated ideological mistrust of federal government and believe that state governments are more responsive to the people

• Deficit politics encouraged devolution• Devolution is supported by public opinion,

but the strength of that support is uncertain– Case Study: AFDC to TANF (Welfare)


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Regulated Federalism

• Instituted by Bush Administration– “No Child Left Behind” (NCLB)

• Bush criticized for abandoning conservative principles

• Prescription drug benefits for Medicare bloated costs

• Return to Federal control caused by 9/11 and Hurricane Katrina as well



Congress and Federalism: Will we become a completely centralized nation?

• Members of Congress represent conflicting constituencies

• The erosion of parties and “linkage institutions” increases political competition

• Americans differ in the extent to which we like federal versus local decisions


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.THEME B: DISCUSSION QUESTIONS

• Does the system of grant-in-aid upset the balance of federalism? Do grant programs enable Congress to do what it pleases by bribing states into compliance? Or do these programs merely increase the likelihood of national policy uniformity? What would be the consequence if a state refused federal grant money?

• To what extent have interest groups produced grants-in-aid, and to what extent have grants-in-aid produced interest groups? Who constitutes a governmental lobby?

• How and why do conservatives and liberals differ over giving aid to the states without conditions?

• Why can’t federal agencies attack complex problems by producing and implementing a coherent systematic policy? Why don’t (can’t) federal bureaucrats issue orders where necessary?

• Does the recent push toward devolution give states too much power?


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Issues connected to federalism

• Gay Marriage• Medicinal Marijuana• Civil Rights• Education• Bush v. Gore• Electoral College

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