This document discusses the concept of federalism and the division of power between the national and state governments in the United States. It outlines three types of systems of government, describes the argument for adopting a federal system, and explains the enumerated and reserved powers of the national and state governments. The document also provides a historical overview of how federalism has evolved over time and discusses contemporary issues regarding intergovernmental relations and the balance of power between federal, state, and local authorities.

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Chapter 3

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Federalism: National and
State Sovereignty
Three types of systems that apportion governmental
power
1. Unitary: national government is sovereign
2. Confederacy: states are sovereign
3. Federal system: national government and states share
power

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Federalism: National and
State Sovereignty
The argument for federalism
Authority divided into two levels: national and state
Protects liberty
Moderates government power by sharing
Strengthens the union
Promotes more responsive government

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Federalism: National and
State Sovereignty
The powers of the nation and states
National: enumerated powers
 Seventeen powers, including measures for secure defense and
stable commerce
 Supremacy clause
National: implied powers
 “Necessary and proper” = “elastic” clause: make laws in support
of enumerated powers

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Federalism: National and
State Sovereignty
The powers of the nation and states
Tenth Amendment established reserved powers: powers
not delegated to the national government are reserved for
the states

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Federalism in Historical Perspective
An indestructible union (1789–1865)
The nationalist view: McCulloch v. Maryland (1819); clear
ruling in favor of national power and the supremacy clause
The states’ rights view: the Dred Scott decision (1857);
ruling for states rights in conflict over legality of slavery
The Civil War settled the issue in favor of national authority

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Federalism in Historical Perspective
Dual federalism and laissez-faire capitalism (1865–1937)
Dual federalism: separation of national from state power
The Fourteenth Amendment interpreted to give states much
discretion
Judicial protection of business: Supreme Court limited
national power to regulate business and industry
National authority prevails as the Supreme Court eventually
approves Franklin Roosevelt’s New Deal economic and
social programs

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Contemporary Federalism
Interdependency and intergovernmental relations
Cooperative federalism: shared policy responsibilities
 National, state, and local levels work together
 Joint funding, administration, and determination of
programs

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Federal, State, and Local Shares
of Government Tax Revenue

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Contemporary Federalism
Government revenues and intergovernmental relations
Fiscal federalism: federal funds used for state programs
Grants-in-aid: cash payments to states and localities
Categorical grants: federal funds restricted to certain state
programs
Block grants: federal funds for state programs addressed to
a general concern

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Federal Grants-in-Aid to the States

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Contemporary Federalism
Devolution: the idea that American federalism can be
strengthened by a partial shift of power from national
government to states
Belief held more strongly by Republicans than Democrats
Dramatically increased with Republican Revolution of 1994
Supreme Court has advanced devolution, especially in latter
decades of twentieth century
Devolution movement ended with presidency of George W.
Bush: education and security policy

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The Public’s Influence: Setting the
Boundaries of Federal-State Power
Roosevelt’s “New Deal”—jobs during the Great
Depression
Lyndon Johnson’s “Great Society”—increased social
services in 1960s
Republican Revolution—rolled back federal authority in
1990s