Topic 1.7 Notes – Relationship Between the States and National Government

What Federalism Is

Federalism means the Constitution splits power between the national government and state governments, and both act directly on the people. You pay federal taxes and state taxes. You follow federal law and state law.

That makes the U.S. different from:

• a unitary system, where the central government holds ultimate power
• the Articles of Confederation, where the states held most power and the national government was weak

Federalism is part of limited government. Separation of powers divides power horizontally among branches. Federalism divides power vertically between levels of government.

A simple way to picture this is as overlapping powers. Some belong to the national government, some to the states, and some are shared.

Federalism as divided and shared powers

Federalist No. 39

Madison said the Constitution is partly national and partly federal.

This matters because dividing power helps prevent any one government from becoming too strong, and it gives people multiple access points to influence policy.

National, State, and Shared Powers

The Constitution creates three buckets of power.

Exclusive national powers

These belong only to the national government. They include:

• coin money
• declare war
• raise armies
• conduct foreign policy
• make treaties
• regulate interstate and foreign commerce
• set uniform naturalization rules

These powers need one national rule, not 50 separate ones.

Enumerated powers

Enumerated powers are written in the Constitution, mainly in Article I, Section 8.

Examples include the power to:

• tax
• borrow money
• regulate commerce
• declare war
• create lower federal courts
• establish post offices

Implied powers

Implied powers are not listed word-for-word, but Congress can infer them from its enumerated powers through the Necessary and Proper Clause, also called the Elastic Clause.

A classic example is the national bank. The Constitution never says “create a bank,” but Congress argued a bank helps carry out taxing, borrowing, and spending powers.

Reserved state powers

The Tenth Amendment says powers not given to the national government and not denied to the states are reserved to the states.

State police powers cover health, safety, welfare, and morals. Examples include:

• public education
• marriage and family law
• most criminal law
• election administration
• professional licensing
• land use
• creating local governments

Local governments are creatures of the states, not a separate constitutional level.

Concurrent powers

Concurrent powers are shared by both levels.

Examples:

• tax
• borrow money
• spend
• make and enforce laws
• establish courts
• build roads

Overlap is normal in federalism.

When National and State Power Collide

Because powers overlap, conflict is built in. The Supremacy Clause says valid national law beats conflicting state law.

Colorado and Washington legalized marijuana in 2012 under state law. They removed state penalties and set up regulation. Federal law under the Controlled Substances Act still banned marijuana.

That means something can be legal under state law but illegal under federal law. States cannot cancel valid federal law, but they do control their own police powers and enforcement priorities.

This is the logic you use on test questions. Figure out which level has authority, then explain how overlap changes the result.

Fiscal Federalism and Mandates

Power is not just about laws. It is also about money. Fiscal federalism means the national government influences states through funding.

Categorical grants give the national government the most control.
Block grants give states more discretion and were central to Reagan’s devolution revolution in the 1980s.
Revenue sharing gives states and localities the most freedom.
Mandates require action. An unfunded mandate forces states to do something without giving enough money to cover the cost.

The National Minimum Drinking Age Act of 1984 is a favorite AP example. Congress did not directly order every state to set the drinking age at 21. It threatened to withhold highway funds from states that refused. That is conditional spending, not a direct mandate.

How Federalism Affects Society

Federalism shapes real life because the allocation of power affects who makes policy, how uniform it is, and who gets blamed or credited.

• States can act as laboratories of democracy. Different states try different policies.
• That variation can also create unequal outcomes depending on where you live.
• Citizens and interest groups get multiple access points. They can push policy at the state level, national level, or both.
• Federalism creates a constant tradeoff between national uniformity and state responsiveness to local needs.

Shared problems show both cooperation and conflict. During Hurricanes Katrina and Sandy, local, state, and national governments all had roles. The benefit was pooled resources. The downside was confusion, delay, and blame-shifting.

The National Industrial Recovery Act of 1933 showed national expansion during the Great Depression. It reflected how a crisis can push more power toward the national government.