Federalism: Crash Course Government and Politics #4

Main Ideas & Concepts (Federalism)

• Federalism (core definition):

  • In the United States, governmental power is divided between:
    • the national (federal) government, and
    • the state governments.
  • This does not mean power is completely separated; it can overlap, depending on the era and policy area.

• Common confusion:

  • “Federal” can refer to the national government, while federalism is the system of dividing power between national and state governments.

• Typical division of responsibilities (simplified):

  • National government handles (examples):
    • war with other countries
    • delivering the mail
  • State governments handle (examples):
    • driver’s licensing
    • professional licensing (barbers, dentists, etc.)
    • local governance
    • criminal law details (what counts as a crime and how prosecutions work)
    • family law (marriage/divorce)
    • education, public health, land use, etc.

• Overlap is inevitable:

  • Some areas involve both national and state governments, especially taxes:
    • federal taxes and state taxes

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Two Major Historical “Types” of Federalism

1) Dual Federalism (roughly 1788–1937)

• Central idea:

  • Power is strictly divided between national and state governments.
  • This is different from separation of powers (a separate government-structure concept).

• Often described as “layer cake federalism”:

  • Like distinct layers intended to be more separable.

• National government “jurisdiction” (examples):

  • Commerce Clause regulation (historically used to limit state economic regulation)
  • internal improvements such as interstate roads and canals
  • subsidies to states
  • tariffs (taxes on imports; tied to foreign policy)
  • public lands
  • patent regulation
  • currency control (to keep money values consistent across states)

• State government “jurisdiction” (examples):

  • property laws
  • inheritance laws
  • commercial and banking/corporate laws
  • insurance
  • family law (marriage/divorce)
  • morality-related areas (framed as social regulation)
  • public health
  • education
  • criminal laws (defining crimes and prosecution)
  • land use, including water and mineral rights
  • elections and local government
  • professional licensing

• Commerce Clause effect (Supreme Court interpretation):

  • For much of the 19th century, courts interpreted the Commerce Clause in ways that:
    • limited how far governments could regulate state economic activity,
    • leading to very little business regulation.
  • This reinforced the “dual” separation.

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2) Cooperative Federalism (begins with the New Deal; rule since the 1930s)

• Central idea:

  • The national government encourages states and localities to pursue nationally defined goals.

• Key mechanism (“carrot and stick”): money

  • The federal government uses grants-in-aid.

Grants-in-aid (detailed typology / how they function)

• What grants-in-aid are:

  • Funds from the national government to states to influence policy.

• Why they work (“carrot/stick” logic):

  • Carrot: money encourages states to adopt desired policies.
  • Stick: federal funds may be withheld if states don’t comply.

• “Categorical” grants-in-aid:

  • Given for a specific purpose (e.g., transportation, education, poverty alleviation).

• Two main kinds of categorical grants-in-aid:

  1. Formula grants
     • State receives funds based on a math formula.
     • Example: Old welfare funding under AFDC (“Aid to Families with Dependent Children”), where aid correlated with the number of people classified as poor.
  2. Project grants
     • States must submit proposals to receive funding.
     • States compete for a limited money pool.
     • The video notes these are more common today than formula grants.

• Block grants (contrasted with categorical grants):

  • The federal government provides a large chunk of money for a broad goal.
  • States have greater discretion over how to spend it.
  • The video uses an analogy involving “blocks/legos” to emphasize flexibility.

• Another label: “marble cake federalism”:

  • Cooperative federalism mixes responsibilities across levels, making them harder to separate.

Regulated Federalism (a less “cooperative” component)

• Central idea:

  • The national government sets rules and regulations that states must follow.

• Mandates (examples mentioned):

  • EPA regulations
  • civil rights standards
  • Americans with Disabilities Act (ADA) rules

• Funded vs. unfunded mandates:

  • States may sometimes receive money to implement rules.
  • If not, they must comply anyway—this is an unfunded mandate (described as an “un-fun mandate” in the video).
  • Example mentioned:
    • OSHA regulations employers must follow (and states may dislike compliance costs/constraints).
  • UMRA attempt:
    • Congress passed the Unfunded Mandates Reform Act (UMRA), but the video says it “hasn’t really worked.”

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Modern Developments: “New Federalism” and Its Effects

• General contemporary baseline:

  • The video describes today as cooperative federalism with heavy regulation in many areas.

• “Small government” argument:

  • Some Americans think the national government is too large/expensive and not what the founders intended.

• New Federalism (popular in the late 20th century):

  • Presented as a revival of an older federalism idea: give more power to states.
  • Popularized by Presidents Nixon and Reagan.

• Three ways New Federalism transfers power:

  1. Block grants
     • Increase state discretion over spending.
  2. Devolution
     • Shift enforcement/regulatory power from the national level to state/local governments.
  3. Constitutional interpretation via the 10th Amendment
     • Powers not delegated to the national government are reserved to states (or the people).
     • The video says this has been used to place a brake on the Commerce Clause.

• President-by-president tilt (as described):

  • Reagan, George H.W. Bush, and Clinton: favor New Federalism/block grants.
  • George W. Bush: shift toward regulated federalism, citing:
    • No Child Left Behind
    • creation of the Department of Homeland Security

• Concluding claim:

  • Cooperative federalism with regulation is likely to persist.
  • Dual federalism (mostly state control, limited national role) is unlikely to return because institutions don’t easily give up power.

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Methodologies / Structured Frameworks Explicitly Presented

• Comparison framework:

  • Dual federalism vs cooperative federalism, each characterized by:
    • the degree of division vs. mixing,
    • the main tools for national–state interaction.

• Grant system classification (categorical grants):

  • Categorical grants-in-aid
    • Formula grants
    • Project grants
  • Contrast with block grants (broader, more discretionary funding).

• Policy compliance framework:

  • Regulated federalism → mandates
    • Funded mandates vs unfunded mandates
      • unfunded = compliance without federal money.

• New Federalism mechanisms (3-part list):

  • Block grants
  • Devolution
  • 10th Amendment-based court cases limiting federal reach

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Speakers / Sources Featured

• Craig (host of Crash Course Government and Politics)
• Stan (recurring character referenced/addressed in the video)
• Thought Bubble (visual segment/presenter referenced in the video)
• Crash Course Government and Politics (program/source)
• PBS Digital Studios (producer association mentioned)
• Voqal (supporter mentioned)
• United States Supreme Court (referenced historically as interpreting the Commerce Clause)
• Franklin Roosevelt (New Deal)

• Congress (enacted New Deal; passed UMRA)

• Presidents mentioned:

  • Nixon
  • Reagan
  • George H.W. Bush
  • Clinton
  • George W. Bush