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McCulloch v. Maryland Case Summary

Sep 3, 2025

Overview

This lecture reviews the Supreme Court case McCulloch v. Maryland, focusing on its facts, constitutional principles, decision, and long-term impact on federalism in the United States.

Facts of the Case

  • In 1816, Congress chartered the Second Bank of the United States, a federal institution.
  • The Bank established branches in several states, including Baltimore, Maryland.
  • Maryland passed a law taxing any bank not chartered by the state $15,000 per year.
  • James McCulloch, cashier of the Baltimore branch, refused to pay the tax.
  • The case escalated to the Supreme Court.

Constitutional Principles

  • Maryland argued Congress had no constitutional right to create a bank, as this was not listed in Article 1 Section 8.
  • McCulloch’s lawyers cited the Necessary and Proper Clause, which lets Congress make laws needed to execute its explicit powers.
  • This clause allows for "implied powers"—powers not explicitly stated but necessary to fulfill constitutional duties.

Supreme Court Decision

  • The Court ruled unanimously for McCulloch; the national bank was constitutional.
  • Chief Justice John Marshall stated that if Congress’s action is not prohibited by the Constitution and supports its spirit, it is constitutional.
  • The decision established the supremacy of federal law over state law.

Significance and Impact

  • The ruling strengthened federal power over the states.
  • It clarified that federal laws take precedence over conflicting state laws.
  • McCulloch v. Maryland set a precedent for interpreting the balance of power in federalism.

Key Terms & Definitions

  • Necessary and Proper Clause — Constitutional clause allowing Congress to make laws needed to execute its listed powers.
  • Implied Powers — Powers not explicitly stated in the Constitution but necessary to carry out explicit powers.
  • Supremacy Clause — States federal law is supreme over state laws when conflicts arise.
  • Federalism — The division of power between national and state governments.

Action Items / Next Steps

  • Review the list of other required Supreme Court cases for AP Government.
  • Study the definitions of implied powers and the Necessary and Proper Clause for exams.