This document provides an overview of federalism in the United States. It summarizes key aspects of federalism including how power is divided between the federal and state governments constitutionally, how federalism has evolved from dual to cooperative federalism, and how fiscal federalism works through grants. It also discusses advantages and disadvantages of federalism for democracy in the US.

1. Federalism
Chapter 3

2. Hurricane Katrina

3. Hurricane Katrina
 August 29, 2005
 Devastating parts of New Orleans,
Mississippi and Alabama
 Thousand of citizens were stranded
without electricity, food ,water, health
care, communications, or police
protection

4. Hurricane Katrina
 State and local governments are the
first responders to natural disasters
 The national government is supposed
to supplement state and local efforts
 A standoff between hesitant federal
officials and overwhelmed authorities
deepened the crisis in New Orleans
 Chaos reigned as the fractured
division of responsibility meant no one
person or agency was in charge

5.  The complications surrounding the
gov’t response to Katrina illustrate the
importance of understanding
American Federalism
 The issue was determining the
appropriate federal and state powers
and responsibilities

6. More Recently…
 Hurricane Sandy

7. Federalism
 The Patient Protection and Affordable
Car Act, also called by critics
“Obamacare”, was signed into law by
president Obama.
Faced a year long battle in Congress
Lead to a lawsuit by states and a
subsequent Supreme Court Case
A prime example of the relationship
between states and the federal
government = federalism

8. Does Federalism
 Enhance democracy in the US?
 Make the gov’t more responsive to US
citizens?
 Make gov’t more complicated?

9. Chapter Outline and
Learning Objectives
 Defining Federalism
LO 3.1: Define federalism and explain its
consequences for American politics and
policy.

10. Chapter Outline and
Learning Objectives
 The Constitutional Basis of Federalism
LO 3.2: Outline what the Constitution says
about division of power between national
and state governments and states'
obligations to each other and trace the
increasing importance of the national
government.

11. Chapter Outline and
Learning Objectives
 Intergovernmental Relations Today
LO 3.3: Characterize the shift from dual to
cooperative federalism and the role of fiscal
federalism in intergovernmental relations
today.
 Understanding Federalism
LO 3.4: Assess the impact of federalism on
democratic government and the scope of
government.

12. Defining Federalism
 What is Federalism?
 Federalism: a way of organizing a nation so
that two or more levels of government have
formal authority over the land and people
 Not a common method of governing
 11 out of 200 nations have a federal system
(Germany, Mexico, Argentina, Canada,
Australia, India, US)

13.  Unitary governments: a way of
organizing a nation so that all power
resides in the central government
 Most governments govern with this
system
 American states have unitary systems
Counties/Townships/Borough – only
have authority granted to them

14.  Confederation: The United Nations is
a modern example.
 The US began as a confederation –
Articles of Confederation
 Very rare form of government

15. Defining Federalism

16. What if ????
 How would politics and policies be
different in America if there were a
unitary system instead of a federal
system?
 Or a confederation instead of a
federal system?
 Does the American form of federalism
increase democracy, or does it have a
negative effect on democracy?

17. Defining Federalism
 Why Is Federalism So Important?
Decentralizes our politics
• On Election day there are 51 presidential
elections (50 states + DC)
• More opportunities to participate
Decentralizes our policies
• Federal and state governments handle
different problems.
• States regulate Alcohol distribution, marriage,
education and speed limits.
• “Laboratories of Democracy” - States can
solve the same problem in different ways
and tend to be policy innovators.

18. Intergovernmental Relations
 The workings of the federal system
 The entire set of interactions among
national, state and local governments
 Analyzing these relations will be the
subject of this chapter

19. The Constitutional Basis of
Federalism
 The Division of Power
National Powers
• Enumerated powers-Spelled out
• Implied
• Inherent
State Powers – Reserved
Concurrent

20. The Constitutional Basis of
Federalism

21. The Constitutional Basis of
Federalism
 The Division of Power
Supremacy Clause, Article VI of the
Constitution states the following are
supreme:
• The U.S. Constitution
• Laws of Congress
• Treaties
Yet, national government cannot
usurp state powers.
• Tenth Amendment

22. The Constitutional Basis of
Federalism
 Establishing National Supremacy
Implied and enumerated powers
• McCulloch v. Maryland (1819)
• Elastic Clause
• Key Principles
• Supremacy of the national gov’t over states
• National gov’t has certain implied powers

23. The Constitutional Basis of
Federalism
Commerce Powers
• Based on the enumerated power to “regulate
inter-state commerce”
• Thought of as “deregulating” states
• American courts have spent many years trying to
define commerce
• Gibbons v. Ogden (1824) – Strong central
government was the winner
• Today, commerce not only covers movements of
goods, but also radio/internet/telephone etc.

24. The Constitutional Basis of
Federalism
 Key Cases
Wikard v. Filburn, 1942
• Commerce clause upheld to regulate
individuals behavior
United States v. Lopez, 1995
• Supreme Court rules that commerce that
“Federal Gun Free School Zone” not an
appropriate use of commerce clause

25. The Constitutional Basis of
Federalism
 The Civil War (1861-1865)
 What McCulloch pronounced
Constitutionally, the Civil War did militarily
 National government asserted it’s power

26. The Constitutional Basis of
Federalism
The Struggle for Racial Equality
• Brown v. Board of Education (1954)
• The conflict over equality was “settled” in
favor of the Nation government

27. LO 3.2
To Learning Objectives
Copyright © 2011 Pearson Education, Inc. Publishing as Longman

28. The Constitutional Basis of
Federalism
 The Power to Tax and Spend
 Congress has the Constitutional power to tax
and spend
 Money plays a key role in the federal
government’s relationship with the states.
Congress gives money to the states, for
example, but stipulates how this money
should be used in order to force the states to
cooperate with federal policies.

29. The Constitutional Basis of
Federalism
 States’ Obligations to Each Other
 Full Faith and Credit: Each state must
recognize official documents and judgments
rendered by other states.
• Article ?, Section I of Constitution
 Privileges and Immunities: Citizens of each
state have privileges of citizens of other
states. Exceptions?
• Article ?, Section 2 of Constitution
 Extradition: States must return a person
charged with a crime in another state to that
state for punishment.

30. Intergovernmental Relations
Today
 Dual Federalism
Definition: a system of government in
which both the states and the national
government remain supreme within
their own spheres, each responsible
for some policies
Like a layer cake
Narrowly interpreted powers of federal
government
Ended in the 1930’s

31. Intergovernmental Relations
Today
 Cooperative Federalism
Definition: a system of government in
which powers and policy assignments
are shared between states and the
national government
Like a marble cake
Shared costs and administration
States follow federal guidelines

32. LO 3.3
To Learning Objectives
Copyright © 2011 Pearson Education, Inc. Publishing as Longman

33. Intergovernmental Relations Today
 Devolution?
Devolution – Transferring
responsibility for policies from the
federal government to state and local
governments.
State and local governments are
mostly responsible for handling crime,
welfare, and education. (Police
Powers)
LO 3.3
To Learning Objectives

34. Intergovernmental Relations
Today
 Fiscal Federalism
 Definition: the
pattern of
spending, taxing,
and providing
grants in the
federal system; it
is the cornerstone
of the national
government’s
relations with
state and local
governments

35. LO 3.3
To Learning Objectives
Copyright © 2011 Pearson Education, Inc. Publishing as Longman

36. Intergovernmental Relations
Today
 Fiscal Federalism (continued)
The Grant System: Distributing the Federal
Pie (600 Billion)
• Categorical Grants: federal grants that can be used for specific
purposes; grants with strings attached
• Project Grants: based on merit; Money states apply for by
submitting specific project proposals
• Formula Grants: amount varies based on formulas
• Block Grants: federal grants given more or less automatically to
support broad programs
• Grants are given to states & local governments.
• Revenue sharing: grant used in the 1970’s and 1980’s preferred by
states because it came with no strings attached

37. LO 3.3
To Learning Objectives

38. Intergovernmental Relations
Today
 Fiscal Federalism (continued)
The Scramble for Federal Dollars
• $460 billion in grants every year
The Mandate Blues
• Mandates direct states or local
governments to comply with federal rules
under threat of penalties or as a condition
of receipt of a federal grant.
• Unfunded mandates

39. Understanding Federalism
 Advantages for
Democracy
 Increases access
to government
 Local problems
can be solved
locally
 Hard for political
parties or interest
groups to
dominate all
politics
 Disadvantages for
Democracy
 States have
different levels of
service
 Local interest can
counteract
national interests
 Too many levels
of government
and too much
money

40. Summary
 American federalism is a
governmental system in which power
is shared between a central
government and the 50 state
governments.
 The United States has moved from
dual to cooperative federalism; fiscal
federalism.
 Federalism leads to both advantages
and disadvantages to democracy.

41. Understanding Federalism

43. Should Whether You Live
Depend on Where You Live?

45. Understanding Federalism
 Federalism and the Scope of
Government
What should the scope of national
government be relative to the states?
• National power increased with
industrialization, expansion of individual
rights, and social services.
• Most problems require resources afforded
to the national, not state governments.