17.3.1 Federal System of Government: Nature and State Relationships

Federalism in the United States

Definition:

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Division of Powers:

Type of Power	Description	Examples
Federal Powers	Powers exclusively held by the federal government.	• Declare war • Regulate interstate and foreign commerce • Coin money • Establish post offices • Raise and maintain armed forces • Make treaties and conduct foreign policy
State Powers	Powers reserved to the states under the 10th Amendment.	• Establish schools • Establish local governments • Regulate intrastate businesses • Make marriage laws • Conduct elections • All powers not granted to the federal government
Concurrent Powers	Powers shared by both federal and state governments.	• Levy taxes • Maintain law and order • Borrow money • Charter and regulate banks • Establish courts • Provide for public welfare

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Development of Federalism:

• Dual Federalism (1787-1920):
  • This period is characterized by a clear division of powers between the federal government and the states, with each being co-equal and operating within distinct areas of policy. The federal and state governments were seen as separate entities with little overlap in their functions.
• Cooperative Federalism:
  • During the Great Depression and after the Wall Street crash, the federal government's role expanded significantly. Cooperative federalism saw increased collaboration between the federal government and states, especially in areas traditionally managed by states alone. The New Deal, Johnson's Great Society programs, welfare schemes, and increased federal spending on programs like Medicare exemplify this era.
• New Federalism (1970s-1990s):
  • Initiated by Nixon and carried forward by subsequent Republican presidents and Bill Clinton, New Federalism aimed to return more power to the states. This was often achieved through block grants, allowing states more discretion in using federal funds. However, the size of these grants was often reduced, and states faced unfunded mandates, limiting their financial flexibility.
• Zigzag Federalism:
  • Federalism has evolved into a more complex relationship where, in some areas, states have more power, while in others, the federal government exercises strict control. This dynamic can shift depending on the political climate and the issues at hand.
• Trump's Federalism:
  • Initially aligned with Republican ideals of returning power to the states, Trump's approach to federalism became more punitive. He targeted specific states, particularly those with policies he opposed, such as California's sanctuary cities and New York's lockdown measures. Trump also took a hard stance on issues like immigration and environmental regulations, often clashing with state governments.

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Federalism in Practice:

• COVID-19 Pandemic:
  • The pandemic highlighted the variation in state responses, with Democrat-led states generally imposing stricter measures like mask mandates and lockdowns. For example, California maintained a mask mandate until March 2022, while Texas ended theirs in March 2021. The federal government, under both Trump and Biden, had limited authority to enforce nationwide policies, illustrating the limits of federal power in a federalist system.
• Legalization of Cannabis:

• Sanctuary Cities:
  • Sanctuary cities, such as those in California, limit cooperation with federal immigration enforcement. In 2017, Trump signed an executive order to withhold federal grants from these cities, but this was deemed unconstitutional, showcasing the tension between federal authority and state autonomy.
• Affordable Care Act (ACA):
  • The ACA faced significant legal challenges from states. In 2012, the Supreme Court struck down provisions that required states to expand Medicaid or lose existing funding, ruling it an unconstitutional overreach of federal power. However, in 2015, the Court upheld the ACA's provision that allowed the federal government to establish health insurance exchanges in states that refused to do so.

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Consequences of Federalism:

• Variation in Laws and Policies:
  • Federalism leads to significant variation in laws and policies across states, as seen during the COVID-19 pandemic and the legalization of cannabis. These differences reflect the diverse cultural, ideological, and demographic makeup of the United States, with more conservative policies typically found in the South and more liberal policies in the Northeast.
• States as Policy Laboratories:
  • States often serve as testing grounds for new policies. For example, the ACA was modeled on healthcare reforms first implemented in Massachusetts in 2006. This allows successful state policies to be adopted at the national level.
• Tensions Between State and Federal Governments:
  • Federalism can lead to conflicts, especially when state governments are controlled by a party different from that of the federal government. Legal challenges often arise, such as those against Obamacare or the overturning of Roe v. Wade in 2022.
• Decentralized Elections and Political Parties:

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