Federalism

1. Federalism

2. Constitutional Basis of Federalism • Term “federalism” not in the Constitution • Is defined in delegated, concurrent, and reserved powers of national & state gov’ts • Delegated Powers: expressed or enumerated powers, specifically given to the national gov’t (Articles I-V) • Example: • Implied Powers: not expressed, powers that may be reasonably inferred from Constitution • Article I, Section 8, Clause 18 – Necessary & Proper Clause • Example: • Inherent Powers: powers that exist for national gov’t b/c the gov’t is sovereign • Example:

3. Concurrent Powers: powers that belong to both the national & state gov’ts • Example: • Reserved Powers: belong specifically to state b/c were neither delegated to national gov’t nor denied to states • Article IV; Amendment 10 • Example: • Prohibited Powers: denied to national &/or state gov’ts • Article I, Section 9 & 10; Amendments • Example:

4. Powers of Gov’t Under Federalism National Powers (Expressed, Implied, Inherent) • Regulate foreign & interstate commerce • Coin & print $ • Provide an army & navy • Declare war • Establish federal courts below the Supreme Court • Conduct foreign relations • Make all laws “necessary & proper” • Acquire and govern US territories & admit new states • Regulate immigration & naturalization

5. National & State Powers (Concurrent) • Levy taxes • Borrow $ • Spend for general welfare • Establish courts • Enact and enforce laws • Charter banks

6. State Powers (Reserved) • Regulate intrastate commerce • Establish local gov’ts • Establish public school systems • Administer elections • Protect the public’s health, welfare, and morals • Regulate corporations • Establish licensing requirements for certain regulated professions

7. Federalism in Practice • Interstate Relations • Article IV addresses issue of relationships between states • Full faith and credit clause: states required to recognize laws & legal documents of other states • Example: • Privileges and Immunities: states prohibited from unreasonably discriminating against residents of other states • Example: • Extradition: states may return fugitives to a state from which they have fled to avoid criminal prosecution at request of governor of the state • Interstate compacts: state may make agreements (sometimes requiring congressional approval) to work together to solve regional problems • Example:

8. Guarantees to the States (Article IV) • Republican form of gov’t • Protection against foreign invasion • Protection against domestic violence • Respect for geographic integrity of states

9. Advantages & Disadvantages Advantages • Ideal for large geographic area b/c encourages diversity in local gov’t • Avoids concentration of political power • Accommodated already existing state gov’ts • States serve as training grounds for national leaders • Keeps gov’t close to the people • Over unitary system & confederation is a distinctive line between concerns of national and local gov’ts Disadvantages • Inflexibility inherent in a written constitution • Complex, many gov’ts to deal w/ • Duplication of offices and functions • Conflicts of authority

10. Establishing National Supremacy • Article VI contains Supremacy Clause • Resolves conflict between national & state laws • States the Constitution, its laws, and treaties shall be “the supreme law of the land” • Upheld in McCulloch v Maryland (1819)

11. Expanded powers of Congress over interstate commerce in Gibbons v Ogden (1824) • Issue was definition of commerce & whether national gov’t had exclusive power to regulate interstate commerce • Marshall court defined commerce as: including all business dealings & the power to regulate interstate commerce belongs exclusively to the national gov’t • Today: national gov’t uses Commerce Clause to justify regulation of numerous areas of economic activity

12. Federalism Today • Dual Federalism (“layer cake federalism”) • Views national & state gov’ts remain supreme w/in their own sphere of influence • Each level is seen as separate from the other • Examples: • States: sole responsibility for educating their citizens • National: sole responsibility for foreign policy issues

13. Cooperative Federalism (“marble cake federalism”) • National & states sharing policymaking & cooperating in solving problems • Grew from policies of the New Deal era & need for national to increase gov’t spending & public assistance programs during Depression • Agricultural Adjustment Act (AAA) & National Recovery Act (NRA) for recovery & relief • Ruled unconstitutional by S Court • FDIC reforming local banks • Increased during WWII to build a wartime economy • Example: building national interstate highway system

14. Creative Federalism • Greater reliance on federal programs from LBJ’s Great Society • Further cooperating among levels of gov’t • Components: • Sharing costs between national & states for programs that typically fell under states • Guidelines & rules set down by national in order for states to reap benefits of federally funded programs • Provided dual administration of programs such as Medicaid, shared approach financially & administratively

15. New Federalism (Competitive Federalism) • Devolution: transfer of power to political subunits • Nixon, Reagan, G.H.W. Bush attempted reversal of cooperative federalism by placing more responsibility for spending grant $ on states w/ conditions: • Equal Opportunity Act (1982) mandates state compliance under threat of criminal or civil penalty • Placement of restrictions on other federal programs if a state doesn’t meet criteria for a program • Crossover requirements, if a state is going to receive federal $, must agree to something in return • Setting speed limits to receive $ for highway repair

16. Fiscal Federalism: national’s patterns of spending taxation, & providing grants to state & local gov’ts • National uses fiscal policy to influence states through granting or w/holding $ to pay for programs • Types: • Grants-in-aid programs: $ & resources from national to state/local for specific projects/programs • Building canals, roads, RRs, land grants • Categorical grants: specific purpose defined by law; may require matching funds from state/local • May be project grants (awarded on basis of competitive application) or formula grants (awarded on basis of established formula – i.e. Medicaid) • Sewage treatment facilities, school lunch programs

17. Block grants: general grants for variety of purposes w/in broad category; fewer strings so more autonomy to state/local; preferred by state • Education, health care, public services • Revenue sharing: “no strings attached” form of aid to state/local used for virtually any project; never > 2% of revenues • proposed under LBJ; popular under Nixon; eliminated by Reagan • Mandates: requirements are imposed by national on state/local; often require state/local to meet requirements at own expense (unfunded mandates) • Americans w/ Disabilities Act • After mid-term elections 1994 – Republican controlled Congress passed Unfunded Mandate Reform Act – limitations on Congress’ ability to pass unfunded mandate legislation

18. Future of Federalism • Budget constraints • Supreme Court • Has affirmed ability of national to pass programs to states • But areas such as abortion, death penalty, left up to states • Has limited power of national to enforce Americans w. Disabilities Act • G. W. Bush • Proponent of devolution, but national grew during his presidency • Federal budget increased every year • Barack Obama • Proposals to end recession conflicted w/ devolution • Massive gov’t spending, regulation of banking & housing industries