Federalism Chapter 3
Vocabulary • Block Grants -McCulloch v Maryland • Categorical grants -Unfunded mandates • Commerce clause • Competitive federalism • Cooperative federalism • Creative federalism • Devolution • Dual federalism • Fiscal federalsim • Funded mandates • New Federalism
Intro to Federalism • Federalism, the division of power between the federal government and state governments, has been a central and evolving feature of our system of government. • Advocates 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. • Critics of a strong federal system point to the fact that local leaders are most sensitive to the needs of their constituents.
History of Federalism • The historical foundation of federalism was established through the writings in the the Federalist Papers and early Supreme Court decisions. • Read and summarize Federalist Papers No. 9 and No. 14
Dual Federalism • The Constitution provides for the rules of the federal system by giving delegated powers to the federal government and reserved powers to the states. • This dual federalism became the 1st type of relationship for the U.S. • Dual federalism existed historically to 1930.
Layer Cake Federalism • Extension of dual federalism developed after the Civil War. • Federalism characterized by a national government exercising its power independently from state governments. • Constitutionally based and each level of government tried to exercise its own control over its own sphere of influence.
Layer Cake Federalism • After Civil War, federal government attempted to exert more of an influence on state governments. • Reconstruction dictated this approach. • Thirteenth Amendment abolished slavery • Fourteenth made the slaves citizens, guaranteeing equal protection of law • Fifteenth gave the freed slaves the right to vote
Marble Cake Federalism • With the onset of the New Deal, federalism could be classified as a marble cake. • Federal gov’t became more involved on local level (Agricultural Act, National Recovery Act, FDIC) • National government would provide the money; state governments would administer the programs.
Marble Cake Federalism • Cooperative federalism increased further during and after WWII. • Federals gov’t had to direct the citizens regarding essential services (rationing system). • Following the war, federal gov’t responded to the needs of returning solider=GI Bill of Rights.
Creative Federalism • Sharing the costs between national and state governments for programs that typically would fall under the purview of state control • Guidelines and rules set down by the federal gov’t in order for the states to reap the benefits of federally funded programs • Provides for dual administration of programs such as Medicaid, which has a shared approach financially ad administratively
Competitive Federalism • Nixon dubbed this “the new federalism” • Aim 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. • Stressed downsizing of the federal government and more reliance on revenue sharing and grants exception: FEMA
Fiscal Federalism • Development 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. • Fiscal federalism can be classified in 3 major program areas: categorical grants, including project and formula grants, block grants, and revenue sharing • Through 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 Federalism • Project grants and formula grants (have impact on nutrition programs, local community money) were reduced under Reagan and George H.W. Bush • Example of block grant: Welfare Reform under Clinton, which transferred welfare responsibility to states. • Federal grants/mandates force states to bow to the dictates of the federal government in order to get aid.
Short Answer Question • Analyze the impact of the Unfunded Mandates Law of 1994 on the states.
Future of Federalism • 1992 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. • Some grants supported (based on specific federal requirements)
Future of Federalism • Move towards national educational standards. • Federal minimum wage standards • Future of Federalism seems unclear: Republican Contract with America signaled a return to a more traditional approach (welfare reform, balanced budget, downsizing gov’t)
Future • G.W. Bush: proponent of devolution, but federal gov’t grew during his term, passed Medicare Prescription Drug Act, federal budget increased, record deficits, recession. • Obama: favored massive gov’t spending, increased regulation of banking and housing industries