Federalism
From Ballotpedia - Reading time: 13 min
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| •Key terms • Court cases •Major arguments • State responses to federal mandates • Federalism by the numbers • Index of articles about federalism |
- See also: Index of articles about federalism
Federalism in the United States is a system of government in which power is divided between a central (national) government and individual states. This structure allows both levels of government to share authority and responsibilities, with certain powers granted to each by the U.S. Constitution.[1][2]
When capitalized, Federalism may refer to support for the historical Federalist Party (one of the two earliest American political parties) and its principles; supporters of this party were called Federalists.[3][4][5]
Although used interchangeably, the terms federal and national are not necessarily the same thing. While a national government refers to the highest level of governance in a country, a federal government refers to a form of government a country can adopt.[6]
This article includes information about the following topics:
Background: The section explains the origins of federalism in the United States.
Types of federalism. Two of the most common types of federalism:
State responses to federal mandates: Recent legislative, regulatory, or legal actions by states to challenge obligations, known as federal mandates, placed on them by the national government.
Recent legislation related to federalism: This section tracks recent legislation by states related to federalism.
- Federal ESG mandate opposition legislation: This legislative approach argues that state governments should oppose certain federal mandates allowing or requiring ESG considerations, especially as they relate to state investments.
- Ballotpedia has identified the following three reform approaches opposing federal ESG mandates:
- Allow state financial officers and other executive branch officeholders to push back against federal regulations that promote ESG investing
- Prohibit federal agencies from regulating shareholder proposals and proxy meetings
- Prohibit federal agencies from requiring businesses to disclose non-material business information
Major arguments about federalism Ballotpedia has identified:
- Six types of arguments about what federalism is and is not.
- 10 types of arguments opposing federalism.
- Nine types of arguments supporting federalism.
Key terms related to federalism. This section features a list of terms that are important for understanding federalism.
Key legislation related to federalism. This section features a list of significant legislation related to federalism.
Key court cases related to federalism. This section features a list of important legislation related to federalism.
State survey of the federal grant review process. This section shows the methodology, findings, and state responses for the 50-state survey conducted by Ballotpedia examining the federal grant process in 2021.
Federalism by the numbers. This section links to relevant data on federalism, including:
- Federalism by the numbers overview
- Federal grants-in-aid
- Federal information collection requests
- Federal mandates
- Overview of federal spending during the coronavirus (COVID-19) pandemic
Background[edit]
- See also: The Federalist Papers
Prior to the ratification of the United States Constitution, the American government operated under the Articles of Confederation from March 1781 to March 1789. The Articles created a national legislature with powers to declare war, negotiate treaties, maintain an army, and coin money. However, it lacked the authority to tax or regulate commerce, and state governments retained most of their sovereignty and independence.[7][8][9]
The U.S. Constitution, which replaced the Articles, established a stronger national government and a federal system that shared power between the national government and the individual states.[1][8][9] The Constitution grants specific powers to the federal government, such as regulating interstate commerce, taxing, and maintaining armed forces—these are known as enumerated powers. At the same time, the 10th Amendment ensures that powers not given to the federal government are reserved for the states or the people, maintaining state authority over matters not explicitly addressed by the national government.
To address conflicts between state and federal powers, the Constitution includes mechanisms such as the Supremacy Clause in Article VI, which declares federal law to be the "supreme law of the land." This means federal law takes precedence when state laws conflict with it. The Necessary and Proper Clause (Article I, Section 8) further empowers Congress to make laws necessary to carry out its enumerated powers. Together, these provisions establish a balance of power between the federal government and the states, ensuring both play vital roles in governance.
Types of federalism[edit]
There are several types of federalism, each representing different ways in which power and responsibilities are shared and balanced between the federal government and state governments, often evolving over time in response to changing political, social, and economic circumstances. Here are two of the most important forms of federalism.
- Dual federalism (also known as layer-cake federalism) is a system of governance where the federal government and state governments each have clearly defined spheres of power. Under dual federalist political systems, the federal government cannot interfere with matters delegated to state authority, and states cannot interfere with matters of federal authority.[10]
- Interlocking (cooperative) federalism (also known as marble-cake federalism) refers to a system of governance where federal and state governments share power and collaborate on certain issues. Under an interlocking federal system, the national government might work with state government programs to fund colleges, pay veterans, or build transportation infrastructure.[11]
Other types of federalism include competitive federalism, horizontal federalism, market-preserving federalism, and picket-fence federalism, among others. Each type offers a different framework for understanding the relationship between federal and state powers, reflecting varied approaches to governance and policy-making.
State responses to federal mandates[edit]
State governments may pursue legislative, regulatory, or legal actions to challenge obligations placed on them by the national government. The term federal mandate refers to any regulation or court ruling that imposes a binding obligation on a state or local government, including conditions for federal funding or unfunded mandates.[12]
Ballotpedia has tracked a list of recent state responses to federal mandates.
[edit]
This section tracks recent legislation by states related to federalism.
- Federal ESG mandate opposition legislation: This legislative approach argues that state governments should oppose certain federal mandates allowing or requiring ESG considerations, especially as they relate to state investments.
- Ballotpedia has identified the following three reform approaches opposing federal ESG mandates:
- Allow state financial officers and other executive branch officeholders to push back against federal regulations that promote ESG investing
- Prohibit federal agencies from regulating shareholder proposals and proxy meetings
- Prohibit federal agencies from requiring businesses to disclose non-material business information
[edit]
Ballotpedia has tracked the following 10 arguments opposing, nine arguments supporting, and six arguments related to the nature of federalism:
- Click the arrow (▼) in the list below to see claims under each argument.
1. Argument: The intentions of the Framers related to federalism have been misunderstood
- Claim: A broad reading of the commerce clause centralizes too much power in Congress
- Claim: The necessary and proper clause does not grant Congress unlimited power
- Claim: Federalism was a political compromise, not an idealistic aspiration
- Claim: Citizens are granted sovereignty under the Constitution
- Claim: America’s government deviates from the Framers’ vision
2. Argument: Federalism is not the same as decentralization
- Claim: Decentralization is neither superior nor a substitute for federalism
- Claim: Decentralization, not federalism, is better at securing citizen participation, state competition, and responsive governance
- Claim: Decentralization is different from federalism and can occur without federalism
3. Argument: Federalism is the middle-ground between disunity and centralization
- Claim: Federalism cannot exist when government is too centralized or overly decentralized
- Claim: Decentralization can go too far
- Claim: Centralization can go too far
4. Argument: Federalism is difficult to maintain
- Claim: Only federal courts can preserve federalism
- Claim: Federal courts no longer favor federalism
- Claim: There’s no significant historical court precedent for upholding federalism
- Claim: Central control is growing stronger, local power is growing weaker, and the shift will likely continue
- Claim: Globalization contributes to centralization
- Claim: States contribute to centralization
- Claim: Corporations prefer centralization
- Claim: The federal government’s spending power and mechanisms contribute to centralization
- Claim: Both Democrats and Republicans in Congress have interests in furthering centralization
- Claim: The media is a force for greater centralization
If federalism is wrong or unnecessary, then why?
- Click the arrow (▼) in the list below to see claims under each argument.
1. Argument: The Framers were wrong to establish a federal system of government
2. Argument: Federalism is undemocratic
- Claim: Courts participate in judicial activism when they aim to support federalist principles by blocking democratic laws
- Claim: Federalism undermines the ability of the people to check the power of large corporations
3. Argument: Federalism allows for and promotes competition between states (and this is bad)
- Claim: Competition between states creates a “race to the bottom” in corporate law where states try to attract businesses to increase tax revenue and please interest groups at the expense of everyone else
- Claim: State competition can work against the adoption of other desirable policies, including welfare
- Claim: National rules are necessary to prevent undesirable effects of state competition
4. Argument: Federalism detracts from our identity as a national community
- Claim: The United States has one political community, which is a national community
- Claim: Federalism dispels the unity of public opinion
5. Argument: Federalism is an impediment to implementing the national will
- Claim: Federalism constrains the implementation of national policy
- Claim: States are not capable of handling issues with a national scope
6. Argument: Federalism fosters corruption
7. Argument: Federalism only works for developing nations
- Claim: A unified national will protects against exploitation by big businesses
- Claim: Small units of government are at risk of being exploited by capitalism
- Claim: A centralized government protects state governments from being controlled by capitalism
10. Argument: Federalism is wasteful
If federalism is right or necessary, then why?
- Click the arrow (▼) in the list below to see claims under each argument.
1. Argument: Federalism allows states to act as laboratories of democracy
- Claim: A decentralized system allows for new programs and policies to be tested on a smaller scale
- Claim: Federalism makes it possible for policies to account for local needs and conditions
- Claim: Federalism incentivizes local governments to be innovative
2. Argument: Federalism enhances democracy
- Claim: Decision-making at a lower level of government allows elected officials to directly respond to the needs of citizens
- Claim: Federalism protects liberty by allowing people to live under government that is tailored to their backgrounds
- Claim: Smaller units of government allow communities to implement policies that may not appeal to the national majority
- Claim: Local politics are less contentious than national politics due to greater homogeneity
3. Argument: Federalism allows for and promotes competition between states (and this is good)
- Claim: Federalism allows people and businesses to vote with their feet
- Claim: The right to exit encourages states to compete in their policy offerings to attract citizens and businesses
- Claim: Federalism incentivizes a “race to the top”
4. Argument: Federalism prevents waste
5. Argument: Federalism protects individual rights
- Claim: Federalism protects individual liberties of trade, investment, and migration
- Claim: Federalism allows states to create laws based on local conditions
- Claim: Federalism limits the power of the federal government to regulate individuals’ lives
6. Argument: Federalism supports stronger communities
- Claim: Federalism is good because it encourages social reciprocity
- Claim: Federalism allows states to create laws that benefit communities and specific local conditions
- Claim: Federalism promotes citizen participation in the political process
7. Argument: Federalism reduces corruption
8. Argument: Federalism allows people to be more active in and closer to the governing process
- Claim: Federalism creates more opportunities for non-white people to be civically active
- Claim: Federalism allows smaller organizations to have influence over powerful political groups
- Claim: Federalism offers more opportunities for individuals to actively participate in politics
- Claim: Federalism promotes social capital more readily than a nationalist form of government
9. Argument: Federalism creates the greatest opportunity for the maximization of human potential
[edit]
- See also: Terms related to federalism
This section features a list of significant terms related to federalism.
- Block grant: A type of federal grant given to states or local governments for a broad purpose, allowing for more flexibility in how the funds are spent. Block grants are a key tool in cooperative federalism, giving states more autonomy while still receiving federal funding.
- Commerce Clause: Located in Article I, Section 8 of the Constitution, this clause grants Congress the power to regulate interstate commerce, which has been a key source of federal authority in shaping national policies.
- Judicial review: The power of the courts to review and potentially invalidate laws and actions by the executive or legislative branches that are deemed unconstitutional. Judicial review plays a crucial role in interpreting the limits of federal and state powers.
- Necessary and Proper Clause: Also known as the Elastic Clause, this provision in Article I, Section 8 allows Congress to pass laws that are necessary and proper to carry out its enumerated powers, thus enabling the federal government to expand its authority.
- Nullification: The idea that states have the right to invalidate federal laws they believe to be unconstitutional, a theory most famously advanced during the Nullification Crisis of the 1830s, which raised tensions between state and federal authority.
- Supremacy Clause: Found in Article VI of the U.S. Constitution, it declares that federal law is the "supreme law of the land," meaning that when state laws conflict with federal laws, federal laws take precedence.
- Tenth Amendment to the U.S. Constitution: This amendment reinforces the principle of federalism by stating that any powers not delegated to the federal government nor prohibited to the states are reserved for the states or the people, emphasizing state sovereignty.
[edit]
- See also: Legislation related to federalism
This section features a list of significant legislation related to federalism.
- Agricultural Adjustment Act of 1938: This act was a key part of the New Deal and aimed to stabilize agricultural prices by reducing surpluses. It represented a shift in federal involvement in regulating agriculture and marked the beginning of extensive federal intervention in the economy.
- Fair Labor Standards Act: Enacted in 1938, this law established minimum wage, overtime pay, and child labor protections. It expanded the role of the federal government in regulating working conditions across the country.
- National Labor Relations Act: Also known as the Wagner Act (1935), it established the right of workers to organize and bargain collectively. It significantly altered the relationship between the federal government, businesses, and labor unions.
- Social Security Act of 1935: A cornerstone of the New Deal, this act created the Social Security system, providing retirement, disability, and unemployment benefits. It greatly expanded the federal government's role in providing a safety net for citizens.
- Affordable Care Act: This sweeping reform of the U.S. healthcare system aimed to increase healthcare access and reduce costs. It significantly expanded the role of the federal government in healthcare, impacting state decisions through mandates and funding.
- Sherman Antitrust Act: Enacted in 1890, it was the first federal legislation aimed at curbing monopolies and promoting competition. It laid the foundation for federal regulation of business practices and is a key component of U.S. economic policy.
[edit]
- See also: Court cases related to federalism
Here are some of the most important court cases related to federalism, as they have had a significant impact on the balance of power between federal and state governments:
- Gibbons v. Ogden: This landmark 1824 case established that the federal government has the authority to regulate interstate commerce, marking a broad interpretation of the Commerce Clause and strengthening federal power over the states.
- McCulloch v. Maryland: A critical 1819 case in which the Supreme Court upheld the federal government's right to establish a national bank and ruled that states could not tax federal institutions, reinforcing the principle of federal supremacy and broadening the interpretation of the Necessary and Proper Clause.
- South Dakota v. Dole: In 1987, the Supreme Court upheld Congress’ use of federal highway funds to encourage states to raise their legal drinking age, interpreting the General Welfare Clause as giving the federal government the power to influence state behavior through conditional funding.
- United States v. Lopez: This 1995 case marked a limit to the scope of the Commerce Clause. The Supreme Court ruled that Congress exceeded its powers under the Commerce Clause by passing a law banning firearms in school zones, asserting that some activities were beyond the federal government's reach.
- Wickard v. Filburn: In 1942, the Supreme Court ruled that the federal government could regulate even local economic activities (such as a farmer growing wheat for personal use) if they had a substantial effect on interstate commerce, expanding the scope of the Commerce Clause.
- National Federation of Independent Business (NFIB) v. Sebelius: This 2012 case upheld the Affordable Care Act’s individual mandate but limited Congress' ability to withhold Medicaid funds from states that did not comply with the expansion of the program, marking a significant decision regarding federal power and state sovereignty.
These cases illustrate key moments in the development of federalism, where the balance of power between state and federal governments was tested and defined through judicial interpretation.
State survey of the federal grant review process, 2021[edit]
States employ a variety of processes to apply for and administer federal grants. The links below provide information about the general processes applied by the 50 states in order to seek and distribute federal funds.
To see the 2021 state survey of the federal grant review process, click here.
- To see the responses by state, click here.
- To see the responses by question, click here.
Federalism by the numbers[edit]
This section links to relevant data on federalism, including:
- Federalism by the numbers. This page provides an overview of data about federal government mandates, grant-in-aid programs, and information collection requests.
- Federalism by the numbers: Federal grants-in-aid. Federal grants-in-aid refer to spending provided by the federal government to state and local governments, U.S. territories, and tribal governments to fund programs.
- Federalism by the numbers: Federal information collection requests. Information collection refers to a request to agencies for information that can include forms, reports, surveys, recordkeeping requirements, or public disclosures.
- Federalism by the numbers: Federal mandates. The term federal mandate refers to any regulation or court ruling that imposes a binding obligation on a state or local government, including conditions for federal funding or unfunded mandates.
- Overview of federal spending during the coronavirus (COVID-19) pandemic. This page features an overview of federal spending in response to the COVID-19 pandemic, including pandemic response legislation and the major spending categories funds have been allocated to.
Federalism overviews[edit]
This section provides overviews of key federalism topics, each separated by specific subject areas.
See also[edit]
External links[edit]
Footnotes[edit]
- ↑ 1.0 1.1 Legal Information Institute, "Federalism," accessed September 18, 2017
- ↑ Stanford Encyclopedia of Philosophy, "Federalism," March 4, 2014
- ↑ History.com, "Federalist Party," accessed September 19, 2017
- ↑ Merriam-Webster, "Federalism," accessed September 19, 2017
- ↑ Dictionary.com, "Federalism," accessed September 19, 2017
- ↑ Difference Between, "Difference Between Federal and National Government," accessed September 29, 2022
- ↑ History.com, "Articles of Confederation," accessed September 19, 2017
- ↑ 8.0 8.1 PBS, "Federalism," accessed September 19, 2017
- ↑ 9.0 9.1 USHistory.org, "Federalism," accessed September 19, 2017
- ↑ Center for the Study of Federalism, "Dual Federalism," accessed July 29, 2021
- ↑ Center for the Study of Federalism, "Cooperative Federalism," accessed July 29, 2021
- ↑ United State Code, "§1555. 'Federal mandate' defined,” accessed June 12, 2024
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