William_T._Bianco,_David_T._Canon]_American_Polit

Federalism today 83

Federalism Today

Federalism today is a complex mix of all the types of federalism that our nation’s

political system has experienced in the past. Our current system is predominantly

characterized by cooperative federalism, but it has retained strong elements of

national supremacy, dual federalism, and states’ rights (see Nuts & Bolts 3.2).

Cooperative Federalism Lives On: Fiscal Federalism

By cooperative federalism, as we have noted, we mean a system in which federal

and state governments share responsibility for delivering a policy. In the case of the

Medicaid program that provides health coverage for low-income adults, for example,

programs in each state are administered by state agencies operating under federal

guidelines. In the modern era, the federal government has also become involved in

funding and setting requirements for K–12 education, which was long considered a

local responsibility.

Most examples of cooperative federalism involve some element of fiscal

federalism, a system whereby the federal government provides some of the funds

needed to sustain the state programs that deliver services to citizens. For example,

the federal government pays a large share of state Medicaid costs and a portion of

the funding for local school districts. At one level, fiscal federalism is a way for the

federal government to help states deal with responsibilities that outstrip their financial

resources. However, fiscal federalism also gives the federal government a way to

fiscal federalism

A form of federalism in which federal

funds are allocated to the lower levels

of government through transfer

payments or grants.

The Evolution of Federalism

NUTS

& B O LT S

3.2

Type of Federalism Period Characteristics

Dual federalism (layer cake) 1789–1937 The national and state governments were viewed as very distinct with little overlap in their

activities or the services they provided. Within this period, federalism could have been state

centered or nation centered, but relations between levels of government were limited.

Cooperative federalism

(marble cake)

1937–present This indicates greater cooperation and collaboration between the levels of government.

Fiscal federalism 1937–present This system of transfer payments or grants from the national government to lower-level

governments involves varying degrees of national control over how the money is spent:

categorical grants give the national government a great deal of control whereas block grants

involve less national control.

Picket fence federalism 1961–present This version of cooperative federalism emphasizes that policy makers within a given policy

area have more in common with others in their area at different levels of government than

with people at the same level of government who work on different issues.

Coercive federalism 1970s–present This involves federal preemptions of state and local authority and unfunded mandates on

state and local governments to force the states to change their policies to match national

goals or policies established by Congress.

DESCRIBE THE MAJOR

TRENDS AND DEBATES IN

FEDERALISM TODAY

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