Chapter 4: Federalism
Section 1: Dividing Government Power
Section 2: American Federalism: Conflict and
Change
Section 3: Federalism Today
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.
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 (cont’d.)
• 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
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.
National Powers
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.
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
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
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
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”
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”
• 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
Shared Powers
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.
Shared Powers
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.
• 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
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
The Limits of Power
• U.S. Constitution denies certain
powers to national, state
governments
Limits on National Government
• Framers believed strongly in limited
government
• Article I, Section 9: government
cannot deny right to trial by jury,
grant titles of nobility, tax exports
between states
• Placed limits to prevent tyranny and
protect individual liberties
• May not exercise powers reserved
to states or limit basic freedoms
The Limits of Power
• U.S. Constitution denies certain
powers to national, state
governments
Limits on National Government
• Framers believed strongly in limited
government
• Article I, Section 9: government
cannot deny right to trial by jury,
grant titles of nobility, tax exports
between states
• Placed limits to prevent tyranny and
protect individual liberties
• 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
The Limits of Power
• U.S. Constitution denies certain
powers to national, state
governments
Limits on National Government
• Framers believed strongly in limited
government
• Article I, Section 9: government
cannot deny right to trial by jury,
grant titles of nobility, tax exports
between states
• Placed limits to prevent tyranny and
protect individual liberties
• May not exercise powers reserved
to states or limit basic freedoms
Limits on State Governments
Powers Denied to Both Levels
• Article I, Section 10: denies specific
powers to state governments—to
coin money and to tax imports and
exports from other states
• Neither can deny people accused
of crimes right to trial by jury or
grant titles of nobility
• States may not have own armies,
engage in wars, enter into treaties
• Neither can pass ex post facto laws
Nation and State Relations
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
Nation and State Relations
The Nation and the Fifty States
The Nation and the Fifty States
• Constitution divides government
power, describes responsibilities of
national and state governments to
each other
• National government responded to
terrorist attack in New York on 9/11
• Article IV, Section 4: national
government only officially recognize
representative state governments
• National government responsible
for protecting states from foreign
invasion and domestic uprisings
• 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
Nation and State Relations
The Nation and the Fifty States
The Nation and the Fifty States
• Constitution divides government
power, describes responsibilities of
national and state governments to
each other
• National government responded to
terrorist attack in New York on 9/11
• Article IV, Section 4: national
government only officially recognize
representative state governments
• National government responsible
for protecting states from foreign
invasion and domestic uprisings
• 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
National government can admit new states, but it cannot split up states
that already exist, or change state boundaries in any way.
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
– 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
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
Section 2 at a Glance
American Federalism: Conflict and Change
• Federalism has changed over time to meet new political needs.
• The Supreme Court acts as a referee in the division of power
between the national and state governments.
• Before the Civil War, American federalism was guided by the
principle of dual federalism, or the idea that the national and state
governments were equal in authority.
• Over the course of U.S. history, American federalism has
experienced a steady expansion in national power.
• In recent years, a trend in American federalism called devolution has
attempted to return power to the states.
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?
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 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
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.
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
Dual Federalism (cont’d.)
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
Dual Federalism (cont’d.)
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
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
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
• 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
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
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.
Expanding National Power
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
• 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 workingclass Americans
• Difficult to address problems at state level
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
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
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
The New Deal
• 1929, stock market crashed, led to
Great Depression
• 1933: President Franklin D.
Roosevelt introduced New Deal
• Poverty and unemployment
widespread
• Series of national programs to
address needs of Americans
• Local organizations unable to
respond adequately
• Some assisted unemployed, elderly
• Others provided jobs
The New Deal
• 1929, stock market crashed, led to
Great Depression
• 1933: President Franklin D.
Roosevelt introduced New Deal
• Poverty and unemployment
widespread
• Series of national programs to
address needs of Americans
• Local organizations unable to
respond adequately
• Some assisted unemployed, elderly
• Major change in role of national
government
• National and state governments
worked together to meet crisis
• Federalism under New Deal known
as cooperative federalism
• Others provided jobs
The New Deal
• 1929, stock market crashed, led to
Great Depression
• 1933: President Franklin D.
Roosevelt introduced New Deal
• Poverty and unemployment
widespread
• Series of national programs to
address needs of Americans
• Local organizations unable to
respond adequately
• Some assisted unemployed, elderly
• Major change in role of national
government
• Major shift caused court challenges
• National and state governments
worked together to meet crisis
• Federalism under New Deal known
as cooperative federalism
• Others provided jobs
• 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
The Great Society
• 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
• 1960s: President Lyndon
Johnson expanded powers of
national government
• If national government
determines states not fully
cooperating, funding withheld
• Great Society program:
initiatives aimed at eliminating
poverty and social inequity
• Threat of losing money
powerful tool
• Creative federalism: released
federal funds to states to
achieve national goals
• 1965: Medicaid provides free
health care for poor
• Grant system increased size,
cost of national government
• Urban renewal grants
increased from $212 million
(1964) to more than $1 billion
(1970)
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.
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.
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
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.
The Reagan Years
The Devolution Revolution
• 1980s: President Ronald Reagan
supported returning power to the
states
• 1994 elections: Contract with
America—Republican campaign
promise to achieve specific goals
• Believed national government less
effective than state governments in
providing services to people
• Central idea: devolution—
returning power to states
• Reagan worked to reduce size of
government by cutting national
grant money to states
• Reduce size and power of national
government by eliminating costly
federal programs
Debating the Issue: Federalism and Hurricane Katrina
What roles should local, state, and national governments play in
responding to natural disasters such as Hurricane Katrina?
In August 2005 Hurricane Katrina devastated New Orleans, Louisiana,
and the Gulf Coast. As the storm approached, officials at all levels of
government prepared. Mayor Ray Nagin of New Orleans ordered a
mandatory evacuation of the city. The governors of Louisiana and
Mississippi declared a state of emergency. The national government
authorized the Federal Emergency Management Agency to respond to
the storm. On August 29, Katrina made landfall as a strong Category 4
storm. The results were catastrophic. Katrina and storm-related
flooding took more than 1,800 lives and caused an estimated $81
billion in damages. In the storm’s aftermath, there was widespread
debate over government response to the disaster.
Debating
the Issue
Section 3 at a Glance
Federalism Today
• Fiscal federalism is a system in which the national government uses
grants and mandates to influence state policy to achieve national
ends.
• Grants-in-aid from the national government to the states have
increased the influence of the national government.
• Today American federalism continues to evolve in the face of new
issues.
Fiscal Federalism
The beginning of the twenty-first century marked yet another shift in
relations between the states and the nation. In the wake of the
September 11, 2001, terrorist attacks, the need for increased national
security led to an expansion in the powers of the government.
Roots in Confederation
• Fiscal federalism: power of federal
government to influence state
policies within context of spending,
taxing, and providing aid in federal
system
• Goes back to Land Ordinance of
1785, took shape during 1900s
• National government gave land to
states for establishing schools
Latest Trend
• 20th century: power of national
government expanded with increased
use of grants-in-aid
• Includes money, other resources
national government provides to pay
for state and local activities
• Low-income housing, community arts
programs, energy assistance, disaster
preparedness
Grants and Mandates
Categorical Grants
• Most federal aid is distributed to
states in form of categorical
grants
• Can only use for specific
purpose, such as building new
airport, crime-fighting in certain
areas
• Used to provide money to areas
affected by natural disaster
Grants and Mandates
Categorical Grants
Block Grants
• Most federal aid is distributed to
states in form of categorical
grants
• Block grants: federal grants
given for more general
purposes, broad policy areas
• Can only use for specific
purpose, such as building new
airport, crime-fighting in certain
areas
• Welfare, public health,
community development,
education
• Used to provide money to areas
affected by natural disaster
• States prefer block grants;
designed to allow state to
spend money as it sees fit
Grants and Mandates
Categorical Grants
Block Grants
• Most federal aid is distributed to
states in form of categorical
grants
• Block grants: federal grants
given for more general
purposes, broad policy areas
• Can only use for specific
purpose, such as building new
airport, crime-fighting in certain
areas
• Welfare, public health,
community development,
education
• Used to provide money to areas
affected by natural disaster
• States prefer block grants;
designed to allow state to
spend money as it sees fit
In the 1980s, President Reagan used block grants in an attempt to
decrease the size and influence of the national government.
Grants and Mandates (cont’d.)
Federal Mandates
State and local governments are usually pleased to receive money from the
national government, but the national government often distributes money with
strings attached.
Grants and Mandates (cont’d.)
Federal Mandates
State and local governments are usually pleased to receive money from the
national government, but the national government often distributes money with
strings attached.
• Federal mandates: demands on states to carry out certain policies as a
condition of receiving grant money
• Particularly important in enacting civil rights and environmental policies
• School busing, desegregation, affirmative action—results of federal mandates
• Environmental regulations come from national government as well
• Clean Air Act of 1970: national mandate requiring states to meet national airquality levels
• In exchange for grant money, states required to create programs to reduce
pollution or risk losing federal funding
Issues in Federalism Today
New issues challenge American federalism. Political debates over how to
best address key policy areas drive new changes in our federal system.
Issues in Federalism Today
New issues challenge American federalism. Political debates over how to
best address key policy areas drive new changes in our federal system.
Poverty
• 1996: Congress passed welfare
reform law, gave states authority to
manage own systems
• Since reforms, number of people
on welfare has decreased
• Some credit decrease to flexibility,
creativity when handled by states
• Others say decrease represents
strong economy, question whether
states will be able to continue to
meet needs of poor
Issues in Federalism Today
New issues challenge American federalism. Political debates over how to
best address key policy areas drive new changes in our federal system.
Poverty
• 1996: Congress passed welfare
reform law, gave states authority to
manage own systems
• Since reforms, number of people
on welfare has decreased
• Some credit decrease to flexibility,
creativity when handled by states
• Others say decrease represents
strong economy, question whether
states will be able to continue to
meet needs of poor
Homeland Security
• Department of Homeland Security
formed after 9/11 terrorist attacks
• Local and state governments
worked alongside Homeland
Security to respond to Hurricane
Katrina
• In aftermath of storm, some
question whether better leadership
and cooperation between levels of
government might have saved
more lives
Issues in Federalism Today (cont’d.)
Environment
• Many reasons why efforts to protect environment seen as responsibility of
national government
• Congress has been asked to limit reach of EPA in favor of local efforts
Issues in Federalism Today (cont’d.)
Environment
• Many reasons why efforts to protect environment seen as responsibility of
national government
• Congress has been asked to limit reach of EPA in favor of local efforts
Immigration
• National government handles policies, citizenship, border protection
• Several states have international borders and take immigration-related
responsibility—education costs, health and social services, low-cost housing
Issues in Federalism Today (cont’d.)
Environment
• Many reasons why efforts to protect environment seen as responsibility of
national government
• Congress has been asked to limit reach of EPA in favor of local efforts
Immigration
• National government handles policies, citizenship, border protection
• Several states have international borders and take immigration-related
responsibility—education costs, health and social services, low-cost housing
Health Care
• Americans turning to state, national governments for solutions to rising costs
• Some think U.S. may be on the verge of health care crisis
• Which level should take lead on issues—state or national?