FEDERALISM
Chapter 3
How the circle and the squares get along
The Roots of the Federal System
 The three major arguments for federalism are:
1. the prevention of tyranny;
2. the provision for increased participation in politics;
3.
Disaster Relief
 Who‟s job was it to clean up New Orleans and the rest of the coast after Katrina?
No Child Left Behind
 Should the national gov‟t step in to regulate school performance?
What is Federalism?
Federalism – Two or more governments exercise power and authority over the same people in the same territory
OR… the relationship between the federal government (circle) and the state governments (squares)
Powers
- Delegated Powers (enumerated powers) –
-
Reserved Powers –
-
Concurrent Powers –
-
Prohibited Powers –
-
Ex. Neither gov’t can tax exports
Full Faith and Credit (Article 4) - States must honor one another‟s public acts, or laws, records, and court
actions.
Exceptions: applies only to civil, not criminal, matters
Extradition Elastic Clause - Aka – “Necessary and Proper Clause” What type of power?
 Art. I, Sec. 8, Cl. 18 - "The Congress shall have Power - To make all Laws which shall be necessary and
proper for carrying into Execution the foregoing Powers, and all other Powers vested by this
Constitution in the Government of the United States, or in any Department or Officer thereof."
 Impossible to predict all powers Congress will need to function, sometimes we might have to allow
Congress extra powers to fulfill their delegated powers
McCulloch v. Maryland (1819)
Background
 Bank of the US operated in Maryland
 Maryland did not want Bank of US to operate in state, competition unwanted, unfair
 Maryland taxed the bank to put it out of business
 McCulloch, Bank of US employee, refused to pay the state tax
McCulloch v. Maryland (1819)
 Is a Bank of the US Constitutional?
McCulloch v. Maryland (1819)
Can a state tax the federal gov‟t?
-John Marshall reaffirmed Supremacy Clause and Elastic Clause
-National (Federal) Gov gets STRONGER
Commerce clause
 Art. I, Sec. 8, Cl. 3 – „The Congress shall have power - To regulate commerce with foreign nations, and
among the several states, and with the Indian tribes.”
 Congress has used the elastic clause to stretch this power
What is commerce?
 Congress given the power to regulate commerce between foreign countries and US as well as state to
state… they control business law.
Gibbons v. Ogden (1824) - 1824 – aka “The Steamboat Case”
 Ogden received a state licensed monopoly to run a ferry across the Hudson River
 Gibbons also saw the potential of the traffic between NJ and NY and obtained a federal license.
 Ogden sued saying he had the valid state license, even though Gibbons had US license
Result – Gibbons wins
 Expanded national power in all areas of commerce law because nation overruled state in interstate trade
issues

 All trade today is primarily controlled by national law
Commerce Clause
 Who cares? Why is it important?
Gibbons v. Ogden ruling makes a ______________ giving Congress power to take control over any
issue involving the movement of people, or things
2 Federalisms?
 OLD SCHOOL – Dual Federalism
 Federal and state governments remain dominant in their separate spheres of influence
 Gibbons v. Ogden proved life is not that simple
 NEW SCHOOL – Cooperative Federalism
 State and Federal governments work together to solve complex problems
 Changing Views of Federalism
 Dual – Layered cake. Interprets the Constitution to give limited powers to the national government,
most to the states. Popular from
 Cooperative – Marble cake. System to provide goods and services to the people among all levels of
government.
Fiscal Federalism
Fiscal means Q – How do you get the states to do things they normally wouldn‟t do?
A–
Q – What is the answer to any question ever asked?
A–
Grants-in-Aid - Money paid from one level of government to another to be spent for a specific purpose
 Categorical Grants - target specific purposes and “strings attached.”
Example:
Block Grants – given for broad, general purposes and allow more discretion on how the money is spent
Example:

Mandates - A requirement that a state undertake an activity or provide a service

 Often times the states or local gov‟ts have to pay the bill of the mandate set by Congress
Mandates Examples:
 1986 – Asbestos Emergency Response Act, Handicapped Children‟s Protection Act
 1988 – Drug-free Workplace Acts, Ocean Dumping Ban Act
 1990 – Clean Air Act
 EX –
 EX –
Devolution

 Idea is fueled by distrust of the federal gov and the desire to save money by reducing the size of the
“bloated federal government”
Devolution Example
 Personal Responsibility and Work Opportunity Reconciliation Act of 1996

 Devolution Example: States received wide latitude on how to administer “workfare” but with the
knowledge that Congress was counting on anti-poverty spending”
 Strings attached: head of family must work or lose benefit; lifetime benefits limited to 5
years; unmarried mother < 18 only receive $ if stay in school and live with adult;
immigrants ineligible for 5 years
Federalism is good
Living under 2 governments is great…
 Built on compromise, promotes unity
 Gov‟t duties can be split up
 Brings gov‟t closer to people
 Allows for state gov‟t to address issues in unique regions of the country
 Allows states to experiment with policy before enacting it at the federal level –
Federalism is bad
Living under 2 governments is bad…
 States can impede progress of Nation
 States are unequal

 Easier for states to be dominated by interest groups