Crash Course Government and Politics: Federalism

Introduction to Federalism

Federalism is a key concept in American government.
It involves the division of power between the national government (federal government) and state governments.
The US government can be seen as a federation of states.

Time Period: 1788 - 1937
Government power was strictly divided between state and national governments.
Known as "layer cake federalism" due to the clear divisions.
National government responsibilities:
- Internal improvements (roads, canals)
- Tariffs and foreign policy
- Public lands
- Regulating patents
- Currency control
State government responsibilities:
- Property, inheritance, commercial, banking, corporate, and insurance laws
- Family law, public health, education, criminal law
- Land use and local government
- Licensing of professions
Based on the Commerce Clause from the Constitution (Article I, Section 8, Clause 3).

Initiated with the New Deal in the 1930s.
National government encourages states to pursue nationally defined goals.
Main method: Financial incentives through grants-in-aid.
- Categorical Grants: For specific purposes like education or transportation.
  - Formula Grants: Based on a mathematical formula (e.g., welfare under AFDC).
  - Project Grants: States submit proposals to compete for funding.
- Block Grants: Large sums for general purposes, with states deciding on expenditure.
Known as "marble cake federalism" due to mixed government roles.
Involves regulated federalism with rules and mandates that states must follow.
- Unfunded mandates occur when states must comply without federal funding.

Promoted by Presidents Nixon and Reagan.
Focuses on giving more power to the states.
Achieved through:
- Block Grants allowing state discretion.
- Devolution: Transferring power back to state/local governments.
- Judicial interpretations favoring state powers under the 10th Amendment.

Modern federalism is a mix of cooperative and regulated federalism.
Debate continues over the size and role of the national government.
Historical tendency shows reluctance for national government to relinquish power.