New federalism gives more power to the states, what are the 3 ways this is done?

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Abstract

This paper explores the changing nature of federalism in the United States. While the paper highlights different phases of federalism and its impact on sub-national governance, the focus is on “New Federalism” a reform initiative begun in the 1970s that emphasizes decentralization from the national to state and local governments. Today, federal programs and funding are transferred to the states; however, these program responsibilities are then devolved from state to local governments. This creates tension across governments in a good economy; however, it can be a formula for disaster in times of severe budget shortfalls. The argument is made that, though devolution is largely a positive development, collaboration among interdependent national and sub-national governments needs to be advanced.

Citation

Anders, K.K. and Shook, C.A. (2003), "New federalism: impact on state and local governments", Journal of Public Budgeting, Accounting & Financial Management, Vol. 15 No. 3, pp. 466-486. https://doi.org/10.1108/JPBAFM-15-03-2003-B005

Publisher

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Emerald Publishing Limited

Copyright © 2003 by PrAcademics Press

After the American colonies won their freedom from England, the thirteen colonies became thirteen states. The new states decided to work together. Their system of government was described in the Articles of Confederation. In this system, the state governments had most of the power. The Federal Government was very weak. This was very different from the government under the King of England.

The Founding Fathers thought that this system left the nation too weak. They decided to develop a new system of government. They wrote a new document called the Constitution, to replace the Articles of Confederation. The Constitution made a stronger Federal Government. It gave power to both the Federal Government and the state governments. This system is called federalism.

Here are some examples of how powers are shared between the Federal Government and state governments.

Federal GovernmentState Governments
  • Make money
  • Declare war
  • Manage foreign relations
  • Oversee trade between states and with other countries
  • Ratify amendments 
  • Manage public health and safety
  • Oversee trade in the state

In addition, the Federal Government and state governments share these powers:

  • Making and enforcing laws
  • Making taxes
  • Borrowing money

Overview

Federalism is a system of government in which the same territory is controlled by two levels of government. Generally, an overarching national government is responsible for broader governance of larger territorial areas, while the smaller subdivisions, states, and cities govern the issues of local concern.

Both the national government and the smaller political subdivisions have the power to make laws and both have a certain level of autonomy from each other.

United States

In the United States, the Constitution has established a system of “dual sovereignty,” under which the States have surrendered many of their powers to the Federal Government, but also retained some sovereignty. Examples of this dual sovereignty are described in the U.S. Constitution. 

Supremacy Clause

Article VI of the U.S. Constitution contains the Supremacy Clause, which reads, "This Constitution, and the laws of the United States which shall be made in pursuance thereof; and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding." This effectively means that when the laws of the federal government are in conflict with the laws of a state's government, the federal law will supersede the state law. 

Article I, Section 8

Article I, Section 8 of the Constitution describes specific powers which belong to the federal government. These powers are referred to as enumerated powers. 

Tenth Amendment

The Tenth Amendment reserves powers to the states, as long as those powers are not delegated to the federal government. Among other powers, this includes creating school systems, overseeing state courts, creating public safety systems, managing business and trade within the state, and managing local government. These powers are referred to as reserved powers. 

Concurrent Powers

Concurrent powers refers to powers which are shared by both the federal government and state governments. This includes the power to tax, build roads, and create lower courts.

Further Reading

For more on federalism, see this Florida State University Law Review article,  this Vanderbilt Law Review article, and this Stanford Law Review article. 

What are the 3 types of federalism?

The progression of federalism includes dual, cooperative, and new federalism.

What are the 3 strengths of federalism?

Federalism promotes political participation. Federalism encourages economic equality across the country. Federalism provides for multiple levels of government action. Federalism accommodates a diversity of opinion.

How did new federalism give more power to the states?

As a policy theme, New Federalism typically involves the federal government providing block grants to the states to resolve a social issue. The federal government then monitors outcomes but provides broad discretion to the states for how the programs are implemented.

What are the 3 main responsibilities of the federal government?

A government is responsible for creating and enforcing the rules of a society, defense, foreign affairs, the economy, and public services.