FederalismChapter 3

Vocabulary0Block Grants -McCulloch v Maryland0Categorical grants -Unfunded mandates0Commerce clause0Competitive federalism0Cooperative federalism0Creative federalism0Devolution0Dual federalism0Fiscal federalsim0Funded mandates0New Federalism

Intro to Federalism0Federalism, the division of power between the federal

government and state governments, has been a central and evolving feature of our system of government.

0Advocates of a strong federal system believe that state and local governments do not have the sophistication to deal with the major problems facing the country.

0Critics of a strong federal system point to the fact that local leaders are most sensitive to the needs of their constituents.

History of Federalism0The historical foundation of federalism was

established through the writings in the the Federalist Papers and early Supreme Court decisions.

0Read and summarize Federalist Papers No. 9 and No. 14

Dual Federalism0The Constitution provides for the rules of the

federal system by giving delegated powers to the federal government and reserved powers to the states.

0This dual federalism became the 1st type of relationship for the U.S.

0Dual federalism existed historically to 1930.

Dual Federalism

Layer Cake Federalism0Extension of dual federalism developed after the Civil

War.

0Federalism characterized by a national government exercising its power independently from state governments.

0Constitutionally based and each level of government tried to exercise its own control over its own sphere of influence.

Layer Cake Federalism0After Civil War, federal government attempted to

exert more of an influence on state governments.

0Reconstruction dictated this approach.

0Thirteenth Amendment abolished slavery0Fourteenth made the slaves citizens, guaranteeing

equal protection of law0Fifteenth gave the freed slaves the right to vote

Marble Cake Federalism0With the onset of the New Deal, federalism could be

classified as a marble cake.

0Federal gov’t became more involved on local level (Agricultural Act, National Recovery Act, FDIC)

0National government would provide the money; state governments would administer the programs.

Marble Cake Federalism0Cooperative federalism increased further during

and after WWII.

0Federals gov’t had to direct the citizens regarding essential services (rationing system).

0Following the war, federal gov’t responded to the needs of returning solider=GI Bill of Rights.

Layer Cake vs. Marble Cake

Creative Federalism0Sharing the costs between national and state

governments for programs that typically would fall under the purview of state control

0Guidelines and rules set down by the federal gov’t in order for the states to reap the benefits of federally funded programs

0Provides for dual administration of programs such as Medicaid, which has a shared approach financially ad administratively

Competitive Federalism0Nixon dubbed this “the new federalism”

0Aim was to offer states pieces of the marble cake but to have them accept it with conditions and with a promise to develop programs on their own.

0Stressed downsizing of the federal government and more reliance on revenue sharing and grants

exception: FEMA

Fiscal Federalism0Development of federalism has been fiscal in nature-how

much funding is appropriated by the federal gov’t to the states, under what conditions, and what the states can do with these funds.

0Fiscal federalism can be classified in 3 major program areas: categorical grants, including project and formula grants, block grants, and revenue sharing

0Through different grant programs, the marble cake is sliced into many different pieces, making it even more difficult to differentiate the functions of the levels of government.

Fiscal Federalism0Project grants and formula grants (have impact on

nutrition programs, local community money) were reduced under Reagan and George H.W. Bush

0Example of block grant: Welfare Reform under Clinton, which transferred welfare responsibility to states.

0Federal grants/mandates force states to bow to the dictates of the federal government in order to get aid.

Short Answer Question0 Analyze the impact of the Unfunded

Mandates Law of 1994 on the states.

Future of Federalism01992 deficit reduction became primary goal of

President Clinton-became apparent that fiscal federalism and grant programs would be greatly affected by cutbacks in federal budget.

0Some grants supported (based on specific federal requirements)

Future of Federalism0Move towards national educational standards.

0Federal minimum wage standards

0Future of Federalism seems unclear: Republican Contract with America signaled a return to a more traditional approach (welfare reform, balanced budget, downsizing gov’t)

Future0G.W. Bush: proponent of devolution, but federal gov’t

grew during his term, passed Medicare Prescription Drug Act, federal budget increased, record deficits, recession.

0Obama: favored massive gov’t spending, increased regulation of banking and housing industries