Federalism

Summary: Federalism and State Policies

Understanding Public Policy, Fifteenth Edition, by Thomas R. Dye. Published by Pearson. Copyright © 2018 by Pearson Education, Inc.

American federalism creates unique problems

and opportunities in public policy. For over 200

years, since the classic debates between Alexander

Hamilton and Thomas Jefferson, Americans have

argued the merits of policymaking in centralized

versus decentralized institutions. The debate continues

today.

1. Over 90,000 separate governments—states,

counties, cities, towns, boroughs, villages,

special districts, school districts, and authorities—

make public policy.

2. Proponents of federalism since Thomas

Jefferson have argued that it permits policy

diversity in a large nation, helps to reduce conflicts, disperses power, increases political

participation, encourages policy innovation,

and improves governmental efficiency.

3. Opponents of federalism argue that it allows

special interests to protect positions of privilege,

frustrates national policies, distributes

the burdens of government unevenly, hurts

poorer states and communities, and obstructs

action toward national goals.

4. The nature of American federalism has

changed radically over two centuries, with

the national government steadily growing

in power. “Coercive federalism” refers to

Washington’s direct mandates to state governments

in matters traditionally reserved

to the states. “Representational federalism”

contends that there is no constitutional division

of powers between nation and states,

and federalism is defined only by the states’

role in electing the president and Congress.

5. Over time, power has flowed toward Washington

and away from the states, largely as a result

of the greater financial resources of national

government and its involvement in grant-inaid

programs to state and local governments.

These governments are obliged to abide by

federal regulations as a condition of receiving

federal money. And these governments have

become increasingly reliant on federal aid. Today

federal aid constitutes over one-quarter of

state–local government revenue.

6. Federalism, however, has enjoyed a modest

revival in recent years. Congress strengthened

federalism in the Welfare Reform Act of 1996

by ending a 60-year-old federal guarantee of

cash assistance and “devolving” the responsibility

for cash welfare aid to the states. Nonetheless,

Congress attached many “strings” to

its welfare grants to the states in the Temporary

Assistance to Needy Families program.

7. Federalism has also been strengthened by

a series of (narrow 5–4) decisions by the

Supreme Court limiting the national government’s

power under the Commerce Clause

and reasserting the authority of the states in

the exercise of their police powers.

8. Federal preemptions of policy areas are justified

under the Supremacy Clause of the Constitution.

Powers delegated to the Congress

under Article I may be totally preempted,

where no state laws are permitted, or partially

preempted, where federal law allows

state laws which do not conflict with federal

law. Federal mandates are direct orders to

state governments to perform a particular activity

or service. When no federal monies are

made available to cover costs, the mandates

are said to be “unfunded mandates.”

9. States have tried to resist federal encroachment

on their powers in several areas.

States contended that the requirement for

all Americans to purchase health insurance

under the Patient Protection and Affordable

Care Act of 2010 was an unconstitutional expansion

of federal power. But the Supreme

Court ruled that the individual mandate

was constitutional under Congress’ taxing

powers.

10. Despite federal laws banning all marijuana

use, many states have passed laws approving

marijuana use for medical purposes.

Colorado and Washington have approved

it for recreational purposes. The U.S. Justice

Department has declined to intervene.

11. Considerable policy variations exist among

the 50 states. For example, tax burdens in

some states are more than twice as high as

other states, and educational spending per

pupil is almost three times greater in some

states than others.

Understanding Public