4. What state and local governments do

Even as most Americans fix their gaze on the actions of the federal government, states and localities are the cornerstones of the US federal system. “What state and local governments do” explains that states are free to design their own governments so long as their structure does not violate the US Constitution. All states have designed their governments to somewhat resemble the national government, with an elected governor, elected legislatures, and state supreme courts. However, each of these structures can operate in different ways, with different powers from state to state. The governments of the Native American reservations and those of the five permanently inhabited US territories are also discussed.

1. American federalism in comparative perspective

“American federalism in comparative perspective” outlines how, in 1787, a new American constitution was drafted which replaced the confederation with a federal form of government. This chapter also explains how several key contemporary issues—such as same-sex marriage, abortion, gun control, and voting rights—illustrate the challenges posed by federalism. Cleavages between and among the subnational units often pose significant challenges for maintaining stable federal systems. For example, in many countries regional governments reflect different ethnic or linguistic groups, and the regions or states may have been independent countries in the past. The source and sharing of revenues also differ significantly in federal systems.

7. Federalism in the world

The US government is the oldest continuing operating federal system, in part because of its relatively high degree of stability and respect for the rule of law. But does that make the US system a model for other nation-states to emulate? “Federalism in the world” compares and contrasts the federal systems of six countries—Switzerland, Canada, Brazil, Australia, India, and Nigeria—to better recognize the strengths and weaknesses of the US system. The idiosyncratic elements of each nation’s federalism are a function of the social, economic, and political forces that contest politics; the nature of the ethnic, linguistic, political, and other cleavages; and decisions made by leaders in the past.

6. Advantages and disadvantages of federalism

Advantages and disadvantages of federalism as much as the federal system is the preferred option of Americans who historically have had a skeptical view of centralized power, it is far from a perfect system for the effective operations of government. Despite its many virtues, the shortcomings inherent in the US federal system lead many observers to question whether it is adequate to meet the needs of increasingly complex social and economic problems. Advantages include flexibility of standards and in dealing with religious diversity, experimentation, varying policies at different levels of government, keeping central government in check, and providing citizen choice. Disadvantages include competition between the states, inefficiency, inequality, and lack of accountability.

5. Fiscal federalism

“Fiscal federalism” describes how during the early decades of the republic, Congress gave states money to help pay for new roads and canals, to support their militia, and to build colleges and universities. But the system of granting money to the states grew in the twentieth century, especially after the Sixteenth Amendment gave the national government the right to impose an income tax in 1913. The chapter discusses the federal grants program, which now provides about 30 percent of the average operating revenues of state and local governments. It also considers how the national government uses mandates to influence state policymaking, how states raise revenue through taxation, and the differences in state spending programs.

3. The evolution of federalism in law

Debates over the relative power of national and state governments have typically hinged on constitutional provisions. “The evolution of federalism in law” describes how, in the early years of the republic, the US Supreme Court played a key role in defining the nature and scope of the US federal system. It then outlines how judicial decisions of the twentieth century continued the expansion of federal authority. Although the national government has many tools to influence state policymaking and enact federal policy, US states retain important powers. For many Americans, the actions of state and local governments have a bigger impact on their lives than those of the national government.

2. Federalism, American style

“Federalism, American style” describes the end of the colonial period, the Articles of Confederation, and the drafting of the new Constitution. Federal systems are partially a function of history, geography, and political and social factors. The US federal system is more decentralized than those of most other countries, in part because thirteen separate colonies spent years resisting central control from Britain and fought a war of independence. They were not keen to give up power to a central government. The Constitution and the Bill of Rights set into motion the formal bases for the US federal system. Key provisions of the Constitution specifically address how federalism should operate.