Federalism: Crash Course Government and Politics #4

Summary

In this episode of Crash Course Government and Politics, Craig explains the concept of federalism in the United States, detailing its evolution from dual federalism to cooperative federalism. He clarifies the division of power between the national and state governments, discusses the impact of the Commerce Clause, and explores the New Deal's role in shifting federal responsibilities. The video also covers different types of federal grants, the concept of New Federalism, and the ongoing debate over the size and role of the national government.

Takeaways

• 🏛️ Federalism is the division of governmental power between the national government and state governments in the US.
• 🤔 The term 'federal' can be confusing as it refers to both the national government and the concept of federalism.
• 🛣️ Under dual federalism, which lasted from 1788 to 1937, government power was strictly divided between state and national governments, often called 'layer cake federalism'.
• 💵 The national government's jurisdiction included internal improvements, tariffs, public lands, patents, and currency control.
• 🏡 State governments had control over property laws, commercial laws, family law, public health, education, criminal laws, and licensing of professions.
• 📚 The Commerce Clause in the US Constitution is the basis for the federal government's power to regulate commerce and has shaped both dual and cooperative federalism.
• 🌐 Cooperative federalism, established post-New Deal, involves the national government providing financial incentives for states to pursue nationally-defined goals.
• 🪙 Grants-in-aid are financial assistance from the national government to states, which can be categorical, formula, project, or block grants.
• 🔄 'Marble cake federalism' is a term used to describe the intertwined nature of state and federal responsibilities in cooperative federalism.
• 📉 Regulated federalism involves the national government setting regulations that states must follow, sometimes without providing funds, known as unfunded mandates.
• 🔄 New Federalism, popularized by Presidents Nixon and Reagan, aims to give more power to the states through block grants, devolution, and 10th Amendment cases.
• 🔑 The 10th Amendment reserves powers not delegated to the US by the Constitution to the states or the people, which has been used to limit the Commerce Clause.

Q & A

What is the basic concept of federalism in the American government?

Federalism is the division of governmental power between the national government of the United States and the state governments. It involves the national government handling certain responsibilities, like war and mail delivery, while state governments manage others, such as driver's licenses and local laws.

Why is federalism sometimes confusing in the context of the U.S. government?

Federalism can be confusing because the term includes 'federal,' which is also used to describe the U.S. government as a whole, creating a semantic contradiction with the concept of dividing power between national and state levels.

What are the two main types of federalism discussed in the script?

The two main types of federalism are dual federalism and cooperative federalism. Dual federalism refers to the strict division of powers between the national and state governments, while cooperative federalism involves the national government providing financial incentives to states to pursue nationally-defined goals.

What is dual federalism, and how does it differ from cooperative federalism?

Dual federalism is characterized by a strict division of powers between the national and state governments, with each having its own jurisdiction. In contrast, cooperative federalism involves a more collaborative approach where the national government uses financial incentives, such as grants-in-aid, to encourage states to adopt certain policies.

What is the significance of the Commerce Clause in the context of federalism?

The Commerce Clause, found in Article I, Section 8 Clause 3 of the U.S. Constitution, gives Congress the power to regulate commerce with foreign nations and among the states. It has been interpreted as the legal basis for the federal government's involvement in economic regulation, affecting both dual and cooperative federalism.

How did the New Deal change the role of the federal government in relation to federalism?

The New Deal, enacted by Franklin D. Roosevelt and Congress, introduced cooperative federalism by significantly expanding the federal government's role in the economy and society. It provided financial support to states to pursue national goals, marking a shift from the limited government approach of dual federalism.

What are grants-in-aid, and how do they function in cooperative federalism?

Grants-in-aid are financial assistance provided by the national government to states for specific purposes, such as transportation or education. They can act as incentives (carrots) for states to adopt certain policies or as penalties (sticks) when funds are withheld if a state does not comply with national government wishes.

What is the difference between formula grants and project grants in the context of grants-in-aid?

Formula grants provide a fixed amount of money to states based on a mathematical formula, often related to the number of people in need. Project grants, on the other hand, require states to submit proposals and compete for a limited pool of resources, making them more performance-based.

What is New Federalism, and how does it relate to the concept of giving more power to the states?

New Federalism is a political approach that aims to shift more power and responsibility to state governments. It involves the use of block grants for discretion in spending federal money, devolution of regulatory power to state and local governments, and court cases emphasizing state rights under the 10th Amendment.

How does the concept of 'marble cake federalism' describe the relationship between state and federal governments in cooperative federalism?

The term 'marble cake federalism' metaphorically describes the intertwined nature of state and federal governments in cooperative federalism, where the influence and responsibilities are so mixed that it becomes difficult to distinguish between the two levels of government.

What is an unfunded mandate, and why might states dislike it?

An unfunded mandate refers to a situation where the national government imposes regulations or rules on states without providing the necessary financial support to implement them. States may dislike unfunded mandates because they are required to comply with additional regulations without receiving the funds to do so, potentially straining state budgets.

Outlines

00:00

😀 Introduction to Federalism

In this introductory segment, Craig from Crash Course Government and Politics dives into the concept of federalism, a fundamental aspect of American government. He humorously addresses the confusion surrounding the term 'federal' and clarifies that federalism refers to the division of governmental power between the national government and individual state governments. Craig explains the roles of the national and state governments, highlighting the responsibilities of each in a federal system. He also touches on the complexity of federalism, noting that certain government functions are shared between the two levels. The historical development of federalism is briefly introduced, with a mention of dual federalism and cooperative federalism as two main types that have shaped American governance.

05:01

📚 Dual Federalism and Its Jurisdictions

This paragraph explores the concept of dual federalism, which dominated American governance from 1788 until 1937. Craig explains that under dual federalism, there was a strict division of power between state and national governments, with each having its own jurisdiction. The national government was responsible for matters such as interstate commerce, tariffs, and currency regulation, while state governments managed property laws, family law, and licensing of professions. The segment humorously refers to this division as 'layer cake federalism,' reflecting the clear layers of power and responsibility. Craig also discusses the Commerce Clause of the US Constitution, which has been instrumental in shaping the interpretation of federal and state powers.

🤝 The Emergence of Cooperative Federalism

Craig introduces cooperative federalism, which has been the dominant form of federalism since the 1930s, particularly with the advent of the New Deal. This form of federalism involves the national government providing financial incentives, known as grants-in-aid, to states and localities to pursue nationally-defined goals. He differentiates between formula grants, project grants, and block grants, explaining how they function as tools for the national government to influence state policies. The paragraph also touches on the concept of 'marble cake federalism,' which metaphorically describes the intertwined nature of state and federal responsibilities. Additionally, Craig discusses regulated federalism, where the national government imposes regulations that states must follow, sometimes without providing the necessary funds, leading to unfunded mandates.

Keywords

💡Federalism

Federalism refers to the division of power between a central government and regional governments, such as states. In the context of the video, federalism is a fundamental concept in American government, where power is shared between the national government and state governments. The video explains that federalism can be confusing due to the dual usage of the term 'federal' to describe both the national government and the system of power-sharing itself.

💡National Government

The national government, also known as the federal government, is the overarching authority that governs a country as a whole. The video mentions that the national government is responsible for certain tasks like conducting wars, foreign policy, and delivering mail. It is contrasted with state governments in the discussion of federalism.

💡State Governments

State governments are the governing bodies of individual states within a country. According to the video, state governments handle matters such as driver's licenses, local laws, and education. They operate under the broader framework of federalism, where they share power with the national government.

💡Dual Federalism

Dual federalism is a system where the national and state governments have separate and distinct jurisdictions. The video explains that from 1788 until 1937, the U.S. operated under dual federalism, with the federal government handling matters like interstate commerce and foreign policy, while states managed local issues such as property and criminal laws.

💡Cooperative Federalism

Cooperative federalism is a system where the national government and state governments work together to achieve common goals. The video describes how, since the 1930s, cooperative federalism has been the norm, with the national government providing funds (grants-in-aid) to states to encourage certain policies or regulations.

💡Grants-in-Aid

Grants-in-aid are financial assistance provided by the national government to state governments for specific purposes. The video uses the term to illustrate how the national government can influence state policies through financial incentives, which is a key aspect of cooperative federalism.

💡Formula Grants

Formula grants are a type of grants-in-aid where the amount of money a state receives is determined by a mathematical formula. The video gives the example of Aid to Families with Dependent Children (AFDC), where states received funds based on the number of people classified as 'poor'.

💡Project Grants

Project grants are another form of grants-in-aid where states must submit proposals to receive funds. The video explains that these grants are competitive, with states vying for a limited pool of resources, and they are now more common than formula grants.

💡Block Grants

Block grants are a type of grants-in-aid that provide states with a large sum of money for broad purposes, allowing states flexibility in how to spend the funds. The video mentions block grants as a feature of New Federalism, which aims to give more discretion to states in how they use federal money.

💡New Federalism

New Federalism is a political philosophy that advocates for more power to be given to state governments. The video discusses how New Federalism gained popularity in the 1970s, with initiatives like block grants and devolution aiming to shift power and control from the national government to the states.

💡Devolution

Devolution is the process of transferring powers and responsibilities from the national government to state or local governments. The video explains devolution as a part of New Federalism, where the aim is to give states more autonomy in policy implementation and regulation enforcement.

Highlights

Federalism is the division of governmental power between the U.S. national government and the state governments.

The national government is sometimes called the federal government, while state governments are simply called state governments.

Federalism can be confusing due to overlapping responsibilities and different types throughout American history.

Dual federalism refers to the period from the founding of the U.S. until the New Deal, characterized by a strict division of powers.

Cooperative federalism has been the rule since the 1930s, involving more interaction and shared responsibilities between state and national governments.

Under dual federalism, the national government had jurisdiction over interstate commerce, tariffs, and currency, among other things.

State governments controlled areas such as property laws, family law, and licensing of professions under dual federalism.

The concept of 'police power' typically resides with states, covering health, safety, and morality.

Dual federalism is sometimes referred to as 'layer cake federalism' due to the clear separation between state and federal powers.

The Commerce Clause in the U.S. Constitution is the basis for the federal government's power to regulate commerce.

The New Deal marked a shift towards cooperative federalism, with the national government encouraging states to pursue nationally-defined goals.

Grants-in-aid are financial assistance from the national government to states, used to encourage certain policies or compliance with regulations.

Categorical grants are a type of grants-in-aid, given for specific purposes like education or transportation.

Block grants offer states more discretion in how to spend federal funds, representing a move towards New Federalism.

Devolution is the process of transferring power from the national government to state and local governments.

Regulated federalism involves the national government setting regulations that states must follow, sometimes without financial support.

Unfunded mandates are regulations set by the national government that states must comply with without receiving financial assistance.

New Federalism, popularized by Presidents Nixon and Reagan, aims to give more power to the states.

The 10th Amendment supports the idea of states retaining certain powers not delegated to the national government.

The current state of federalism in the U.S. is a mix of cooperative federalism and regulation, with some aspects of New Federalism.

The debate over the size and role of the national government continues, reflecting the original intent of limited government versus modern realities.

Transcripts

Hi, I'm Craig and this is Crash Course Government and Politics. And today we're going to talk about

a fundamental concept to American government: federalism.

Sorry. I'm not sorry. You're not even endangered anymore.

Federalism is a little confusing because it includes the word, "federal," as in federal

government, which is what we use to describe the government of the United States as a whole.

Which is kind of the opposite of what we mean when we say federalism. Confused? Google it.

This video will probably come up. And then just watch this video. Or, just continue watching this video.

[Theme Music]

So what is federalism? Most simply, it's the idea that in the US, governmental power is

divided between the government of the United States and the government of the individual

states. The government of the US, the national government, is sometimes called the federal

government, while the state governments are just called the state governments. This is

because technically the US can be considered a federation of states. But this means different

things to different people. For instance, federation of states means ham sandwich to

me. I'll have one federation of states, please, with a side of tater tots. Thank you. I'm kind of dumb.

In the federal system, the national government takes care of some things, like for example,

war with other countries and delivering the mail, while the state government takes care

of other things like driver's license, hunter's licenses, barber's licences, dentist's licenses,

license to kill - nah, that's James Bond. And that's in England. And I hope states don't do that.

Pretty simple right? Maybe not. For one thing, there are some aspects of government that

are handled by both the state and national government. Taxes, American's favorite government

activity, are an example. There are federal taxes and state taxes. But it gets even more

complicated because there are different types of federalism depending on what period in

American history you're talking about. UGH! Stan! Why is history so confusing!? UGH!

Stan, are you going to tell me? Can you talk Stan?

Basically though, there are two main types of federalism -dual federalism, which has

nothing to do Aaron Burr, usually refers to the period of American history that stretches

from the founding of our great nation until the New Deal, and cooperative federalism,

which has been the rule since the 1930s. Let's start with an easy one and start with dual

federalism in the Thought Bubble.

From 1788 until 1937, the US basically lived under a regime of dual federalism, which meant

government power was strictly divided between the state and national governments.

Notice that I didn't say separated, because I don't want you to confuse federalism with

the separation of powers. DON'T DO IT! With dual federalism, there are some things that

only the federal government does and some things that only the state governments do.

This is sometimes called jurisdiction.

The national government had jurisdiction over internal improvements like interstate roads

and canals, subsidies to the states, and tariffs, which are taxes on imports and thus falls

under the general heading of foreign policy. The national government also owns public lands

and regulates patents which need to be national for them to offer protection for inventors

in all the states. And because you want a silver dollar in Delaware to be worth the

same as a silver dollar in Georgia, the national government also controls currency.

The state government had control over property laws, inheritance laws, commercial laws, banking

laws, corporate laws, insurance, family law, which means marriage and divorce, morality

-- stuff like public nudeness and drinking - which keeps me in check -- public health,

education, criminal laws including determining what is a crime and how crimes are prosecuted,

land use, which includes water and mineral rights, elections, local government, and licensing

of professions and occupations, basically what is required to drive a car, or open a

bar or become a barber or become James Bond.

So, under dual federalism, the state government has jurisdiction over a lot more than the

national government. These powers over health, safety and morality are sometimes called police

power and usually belong to the states. Because of the strict division between the two types

of government, dual federalism is sometimes called layer cake federalism. Delicious. And

it's consistent with the tradition of limited government that many Americans hold dear.

Thanks Thought Bubble.

Now, some of you might be wondering, Craig, where does the national government get the

power to do anything that has do to with states? Yeah, well off the top of my head, the US

Constitution in Article I, Section 8 Clause 3 gives Congress the power "to regulate commerce

with foreign nations, and among the several states, and with the Indian tribes." This

is what is known as the Commerce Clause, and the way that it's been interpreted is the

basis of dual federalism and cooperative federalism.

For most of the 19th century, the Supreme Court has decided that almost any attempt

by any government, federal or state, to regulate state economic activity would violate the

Commerce Clause. This basically meant that there was very little regulation of business at all.

FREEDOOOOOOMM!

And this is how things stood, with the US following a system of dual federalism, with very little

government regulation and the national government not doing much other than going to war or

buying and conquering enormous amounts of territories and delivering the mail.

Then the Great Depression happened, and Franklin Roosevelt and Congress enacted the New Deal,

which changed the role of the federal government in a big way. The New Deal brought us cooperative

federalism, where the national government encourages states and localities to pursue

nationally-defined goals. The main way that the federal government does this is through

dollar-dollar bills, y'all. Money is what I'm saying. Stan, can I make it rain? Yeah?

All right, I'm doing it. I happen to have cash in my hand now. Oh yeah, take my federal money, states.

Regulating ya. Regulator.

This money that the federal government gives to the states is called a grant-in-aid. Grants-in-aid

can work like a carrot encouraging a state to adopt a certain policy or work like a stick

when the federal government withholds funds if a state doesn't do what the national government

wants. Grants-in-aid are usually called categorical, because they're given to states for a particular

purpose like transportation or education or alleviating poverty.

There are 2 types of categorical grants-in-aid: formula grants and project grants. Under a

formula grant, a state gets aid in a certain amount of money based on a mathematical formula;

the best example of this is the old way welfare was given in the US under the program called

Aid to Families with Dependent Children. AFDC. States got a certain amount of money for every

person who was classified as "poor." The more poor people a state had, the more money it

got. Project grants require states to submit proposals in order to receive aid. The states

compete for a limited pool of resources. Nowadays, project grants are more common than formula

grants, but neither is as popular as block grants, which the government gives out Lego

Blocks and then you build stuff with Legos. It's a good time.

No no, the national government gives a state a huge chunk of money for something big, like

infrastructure, which is made with concrete and steel, and not Legos, and the state is

allowed to decide how to spend the money. The basic type of cooperative federalism is

the carrot stick type which is sometimes called marble cake federalism because it mixes up

the state and federal governments in ways that makes it impossible to separate the two.

Federalism, it's such a culinary delight.

The key to it is, you guessed it -- dollar dollar bills y'all. Money. But there's another

aspect of cooperative federalism that's really not so cooperative, and that's regulated federalism.

Under regulated federalism, the national governments sets up regulations and rules that the states

must follow. Some examples of these rules, also called mandates, are EPA regulations,

civil rights standards, and the rules set up by the Americans with Disabilities Act.

Sometimes the government gives the states money to implement the rules, but sometimes

it doesn't and they must comply anyways. That's called an unfunded mandate. Or as I like to

call it, an un-fun mandate. Because no money, no fun. A good example of example of this

is OSHA regulations that employers have to follow.

States don't like these, and Congress tried to do something about them with the Unfunded

Mandates Reform Act or UMRA, but it hasn't really worked. In the early 21st century,

Americans are basically living under a system of cooperative federalism with some areas

of activity that are heavily regulated. This is a stretch from the original idea that federalism

will keep the national government small and have most government functions belong to the states.

If you follow American politics, and I know you do, this small government ideal should

sound familiar because it's the bedrock principle of many conservatives and libertarians in

the US. As conservatives made many political inroads during the 1970s, a new concept of

federalism, which was kind of an old concept of federalism, became popular. It was called,

SURPRISE, New Federalism, and it was popularized by Presidents Nixon and Reagan.

Just to be clear, it's called New Federalism not Surprise New Federalism. New Federalism

basically means giving more power to the states, and this has been done in three ways. First,

block grants allow states discretion to decide what to do with federal money, and what's

a better way to express your power than spending money? Or not spending money as the case may

be. Another form of New Federalism is devolution, which is the process of giving state and local

governments the power to enforce regulations, devolving power from the national to the state

level. Finally, some courts have picked up the cause of New Federalism through cases

based on the 10th Amendment, which states "The powers not delegated to the United States

by the Constitution, nor prohibited by it to the States, are reserved to the States

respectively, or to the people." The idea that some powers, like those police powers I talked about before,

are reserved by the states, have been used to put something of a brake on the Commerce Clause.

So as you can see, where we are with federalism today is kind of complicated. Presidents Reagan,

George H.W. Bush, and Clinton seem to favor New Federalism and block grants. But George

W. Bush seemed to push back towards regulated federalism with laws like No Child Left Behind

and the creation of the Department of Homeland Security. It's pretty safe to say that we're

going to continue to live under a regime of cooperative federalism, with a healthy dose

of regulation thrown in. But many Americans feel that the national government is too big

and expensive and not what the framers wanted.

If history is any guide, a system of dual federalism with most of the government in

the hands of the states is probably not going to happen. For some reason, it's really difficult

to convince institutions to give up powers once they've got them. I'm never giving up

this power. Thanks for watching, I'll see you next week.

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