CHAPTER 4 FEDERALISM

Main IdeaThe Framers of the Constitution established a federal system that divides powers and responsibility between the national and state governments.

Dividing Government Power

Reading Focus• Why did the Framers choose federalism?• What powers does the national government have?• What powers do state governments have?

Federalism in Action

Why Federalism?

American federalism was invented in Philadelphia in 1787. When delegates to the Constitutional Convention met to consider strengthening the national government, federalism was an obvious choice.

• New nation struggled to function as confederation• Without power to raise funds, national government not strong enough to

deliver stability or economic unity• Unitary rule—all power held by strong central authority—out of the

question• Founders suspicious of powerful central government, like British

monarchy• Framers sought to forge republic• Relied on philosophers who advocated self-rule and limited government—

Hobbes, Rousseau, Smith

Why Federalism {continued}

• 1748: Spirit of the Laws, Baron de Montesquieu — Dividing power best way to defend people’s freedom from too

powerful government — Framers thoroughly absorbed this idea• Framers faced difficult balancing act — National government addresses needs of nation — Preserve states’ rights — Ensure republican government• Framers devised plan with authority balanced between nation and states• Carefully divided power between two levels of government—state, national — All powers dealing with states’ common interests—national

defense, control over currency—assigned to national government — All other powers remained with states

National Powers

Expressed Powers• Expressed powers: powers granted to national government by

Constitution• Article I, Section 8: expressed powers of legislative branch—power to

issue money, collect taxes, pay debts, regulate trade, declare war, raise and maintain armed forces

• Expressed powers of other two branches listed in Articles II, III• Article II gives president power to command armed forces, conduct

foreign relations• Article III gives judicial branch power to rule on constitutional issues,

cases involving U.S. government, disputes among states

The Constitution outlined a federal system that would provide strong national government and protect states’ rights. In the U.S. federal system, some powers belong to the national government, others are reserved for the states, and still others are shared by both.

Implied Powers• Implied powers: not specifically listed but logical extensions of

expressed powers• Article I, Section 8:necessary and proper clause• Also referred to as elastic clause; used to stretch powers of Congress• Building highways, regulating food, mechanism for collecting taxes

Inherent Powers • Inherent powers: historically recognized as naturally belonging to all

governments that conduct business of sovereign nation• U.S. government has inherent powers simply because it is a national

government• Power not specifically granted by Constitution: power to acquire new

territory, conduct foreign affairs

• Reserved powers belong to states because they are not delegated to national government, nor prohibited from states

• Regulate health, public safety, morals, general welfare of state citizens• Other reserved state powers: ability to regulate marriage, form local

governments, control public school systems, establish and enforce laws• Power to regulate businesses operating within borders, issue licenses to

doctors, lawyers, barbers, hairdressers

State Powers• Constitution has less to say about state powers• James Madison: national powers “few and defined,” state powers

“numerous and indefinite”• 1791: Bill of Rights reserved powers clause—”powers not delegated to

the United States…reserved to the States respectively”

Shared Powers

• Power to collect taxes is a concurrent power: power held by national government, state governments at same time

• Both levels of government can establish courts, make and enforce laws, build roads, provide education, borrow and spend money

• Citizens subject to two levels of authority; must follow state and national laws

• Framers considered situation where national, state laws come into conflict

• Article VI supremacy clause: national laws and treaties form the “supreme law of the land”

• Judges have to obey Constitution even if it contradicts state laws

In addition to their reserved powers, states may also share powers with the national government. If the Constitution does not specifically state that a power belongs exclusively to the national government, then the states may exercise that power, too.

The Limits of Power

• U.S. Constitution denies certain powers to national, state governments

• Framers believed strongly in limited government

• Placed limits to prevent tyranny and protect individual liberties

Limits on National Government• Article I, Section 9: government

cannot deny right to trial by jury, grant titles of nobility, tax exports between states

• May not exercise powers reserved to states or limit basic freedoms

Limits on State Governments• Article I, Section 10: denies

specific powers to state governments—to coin money and to tax imports and exports from other states

• States may not have own armies, engage in wars, enter into treaties

Powers Denied to Both Levels• Neither can deny people accused

of crimes right to trial by jury or grant titles of nobility

• Neither can pass ex post facto laws

Nation and State Relations

National government can admit new states, but it cannot split up states that already exist, or change state boundaries in any way.

The Nation and the Fifty States•National government responded to terrorist attack in New York on 9/11•Constitution ensures states be treated as equals by national government•States must have equal representation in Senate•Nation cannot tax people of one state more than another

The Nation and the Fifty States•Constitution divides government power, describes responsibilities of national and state governments to each other•Article IV, Section 4: national government only officially recognize representative state governments•National government responsible for protecting states from foreign invasion and domestic uprisings

Relations between the States• Constitution gives states right to manage affairs within borders — Encourages cooperation between states — States required to extradite persons charged with crime to state where offense committed• Article IV: full faith and credit clause — Requires states give “full faith and credit” to public acts, official records, judicial proceedings of every other state — Contract signed in one state honored by officials in another state• Article IV, Section 2: privileges and immunities clause• Carefully divided power between two levels of government—state, national — Citizens of each state receive all “privileges and immunities” of any

state — New Yorker visiting North Carolina will enjoy same police protection as

North Carolinians

— Many exceptions, including in-state college tuition to residents and lower

fees for services funded by taxes

What about Local Government • Creating local governments is a power reserved to the states.• Relationship between state and local government different from that of

national and state governments• State government has power to reorganize local government at any time

to better address state needs

Native American Sovereignty• Article I, Section 8: national government has power to regulate commerce

with Indian tribes; used power to make treaties with Native American nations• In most cases treaties resulted in loss of land, sovereignty, and individual

rights for native peoples• Native Americans not granted full citizenship until 1924

American Federalism: Conflict and Change

Reading Focus• What role does the Supreme Court play in American federalism?• How was government power divided in dual federalism?• What events caused the expansion of national power in the twentieth

century?• What is new federalism?

Main IdeaOver the past 200 years, conflicts over the balance of power between the national and state governments have led to changes in American federalism.

Role of the Supreme Court

Long before the Civil War, the Framers anticipated the government they created might lead to conflicts between the states and the national government. How did they plan to resolve such conflicts?

• Gave Supreme Court power to resolve conflicts between nation and states

• Article III gives judicial branch authority to hear cases involving Constitution, U.S. laws, disputes between states

• Supreme Court acts as referee, sorting out conflicts between nation, states

• Courts make decisions based on rules in Constitution• Article VI includes supremacy clause: Constitution, national laws,

treaties made by national government “supreme law of the land”• Court’s rulings have gradually increased power of national government• American federalism continually changed to meet needs of new

generations• Changes understood in four terms: dual federalism, cooperative

federalism, creative federalism, new federalism

Dual Federalism

The Great Debate•Nationalists: advocates of strong, centralized national government•Proponents of states’ rights held national government should not unduly intrude in state affairs•Secretary of Treasury Alexander Hamilton asked Congress to create national bank, argued government had constitutional power to regulate currency, therefore implied power to create bank•Congress refused to renew charter when it expired 20 years later•1816: dispute resurfaced with charter of Second Bank of the United States

The first era of American federalism, dual federalism, lasted from about 1789 to the 1930s. Both state and national government were equal authorities operating within their own spheres of influence, as defined by a strict reading of the Constitution.

Dual Federalism {continued}

The Marshall Court• 1819, McCulloch v. Maryland: bank dispute reached Supreme Court• Court ruled in favor of nation’s authority to start bank• Chief Justice John Marshall argued charter justified by Constitution’s

necessary and proper clause• Bank would help nation properly execute powers to regulate commerce

and currency

“A House Divided”• U.S. became bitterly divided over issue of slavery• Debate wrapped up in arguments about states’ rights and national

power• Southern slave states resisted national measures to outlaw slavery in

new states and territories• Held states sovereign, could make decisions for themselves

“A House Divided” (cont’d.)• Doctrine of nullification: some southern politicians believed states had

right to nullify national laws that contradicted or clashed with state interests

• According to doctrine, if state challenged national law, three-quarters of other states would have to ratify amendment allowing Congress to enact law

• State could either choose to follow law or secede from Union• Doctrine of secession: idea that states had right to separate from

Union• 1860: Issue of sovereignty came to a head after election of Abraham

Lincoln• Lincoln believed issue of slavery was divisive• South Carolina first to secede; followed by 10 other states• 1861: U.S. divided by Civil War, waged for 4 years; bloodiest war in U.S.

history

• 13th, 14th, 15th Amendments (Reconstruction Amendments) passed• Abolished slavery, defined citizenship, prohibited states from denying

citizens’ rights, extended voting rights to African American men• In time national government would use new constitutional powers to

protect rights of African Americans, women, and others

After the Civil War• 1865: Confederacy surrendered; Union restored• Defeat of Confederacy settled matter of slavery• War profoundly changed relationship between states, national government• War firmly established national supremacy• Put to rest most radical interpretations of state sovereignty• Led to expanded constitutional powers of national government

Landmark Supreme Court Cases McCulloch v. Maryland (1819)

Why It Matters: In McCulloch v. Maryland the Supreme Court had the first of many opportunities to influence the division of power in the federal system. The Court’s decision led to the expansion of national power.

Expanding National Power

Turn-of-the-Century Reforms•End of 19th to start of 20th century was time of tremendous change in U.S.•New technology: railroads, telegraph, industrial machinery•Unprecedented growth: population more than doubled from 1870 to 1916•Social and economic problems: overcrowded cities, rising crime rates, dangerous working conditions•Corporations developed great economic influence at expense of working-class Americans•Difficult to address problems at state level

The Civil War reinforced the supremacy of the national government over the states. In the years following the war, new challenges continued to shift the balance of power in favor of the national government.

Turn-of-the-Century Reforms (cont’d.)• National government passed legislation to reform social, business

conditions• 1887: Interstate Commerce Act regulated the railroad industry• Set restrictions on rates railroads could charge• 1890: Sherman Antitrust Act prevented monopolies: exclusive control of a

good or service in a particular market• Encourage fair competition in all industries• Early 1900s: used to break up large monopolies such as American

Tobacco• New laws expanded national government’s power to regulate business• Court cases limited reach of national power• 1895, United States v. E. C. Knight Company: sugar refining companies

operated locally, could not be regulated by national government

The New Deal

• 1929, stock market crashed, led to Great Depression

• Poverty and unemployment widespread

• Local organizations unable to respond adequately

• 1933: President Franklin D. Roosevelt introduced New Deal

• Series of national programs to address needs of Americans

• Some assisted unemployed, elderly

• Others provided jobs

• Major change in role of national government

• National and state governments worked together to meet crisis

• Federalism under New Deal known as cooperative federalism

• Major shift caused court challenges

• Opponents argued constitutional powers to tax and regulate commerce did not give power to enact many New Deal programs

• Supreme Court upheld most New Deal legislation

• If national government determines states not fully cooperating, funding withheld

• Threat of losing money powerful tool

• Grant system increased size, cost of national government

• Urban renewal grants increased from $212 million (1964) to more than $1 billion (1970)

• 1960s: President Lyndon Johnson expanded powers of national government

• Great Society program: initiatives aimed at eliminating poverty and social inequity

• Creative federalism: released federal funds to states to achieve national goals

• 1965: Medicaid provides free health care for poor

The Great Society

The Reagan Years• 1980s: President Ronald Reagan

supported returning power to the states

• Believed national government less effective than state governments in providing services to people

• Reagan worked to reduce size of government by cutting national grant money to states

The Devolution Revolution• 1994 elections: Contract with

America—Republican campaign promise to achieve specific goals

• Central idea: devolution—returning power to states

• Reduce size and power of national government by eliminating costly federal programs

New Federalism

Throughout much of U.S. history, the powers of the national government expanded. Beginning in the 1980s, many political leaders worked to reverse this trend by returning authority to state governments. This era is known as new federalism.

Vocabulary

Expressed Powers Powers granted to the national government by the Constitution

Implied Powers Powers that are not specifically listed in the Constitution but are logical extensions of expressed powers

Inherent Powers Powers that historically have been recognized as naturally belonging to all governments that conduct the business of a sovereign nation

Reserved Powers Powers that belong to the states because the Constitution neither delegates these powers to the national government nor prohibits them to the states

Concurrent Powers Powers held by the national government and the state governments at the same time

Full Faith and Credit Clause Article IV of the Constitution, which requires that states give “full faith and credit” to the public acts, official records, and judicial proceedings of every other state

Vocabulary

Dual Federalism A system of federalism in which both state and national governments were equal authorities operating within their own spheres of influence, as defined by a strict reading of the Constitution

Doctrine of Nullification The idea that states had the right to cancel national laws that they believed contradicted or clashed with state interests

Doctrine of Secession The idea that states had the right to separate themselves from the Union