In this chapter, we examined the role that federalism has played in the political development of the American state. First, we defined federalism as it relates to the division of power between unit and sub-unit level actors in contrast to the more commonly seen unitary and less common confederalized systems around the world and in history. Then, we looked at the codification of federalism within the constitutional order regarding implied, inherent and concurrent powers. Finally, we observed the historical development of federalism from its nationalist beginnings with the Marshall court, through its state rights’ oriented dual federalism.
After the twin impacts of industrialization/urbanization as well as the crisis of the 1930's era Great Depression, a new vision of inter-governmental affairs arose—that of cooperative federalism. This top-down approach would reach its height in LBJ's creative version, employed to implement the Great Society through the usage of grants-in-aid. These grant programs took the form of categorical and block formulations. However, the conservative reaction against this "fiscal federalism," as critics called it, led to Nixon and Reagan's New Federalisms. These programs were characterized by a movement away from grants-in-aid as a device for national expansion to one of state and local autonomy with general revenue sharing, a renewed emphasis placed on block over categorical grants, and devolution of program implementation, development, and adjustment. These patterns have continued into the Clinton and George W. Bush administrations with supporting Supreme Court decisions which have led to a retreat of at least some elements of big government federalism in recent years. |