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Dual/Layer Cake Federalism
• Characterized by national government exercising its power independently from state governments
• Constitutionally based
• Each level of government tried to exercise its own control over its own sphere of influence
Marble Cake Federalism
The New Deal
• Federal and state governments relationship could be described as a marble cake
• Federal government became more intrusive in what had been the state government’s domain
McCulloch v Maryland
• First real challenge of authority
• Revolved around the right of Maryland to tax paper currency needed by a branch of the US National Bank located in the state
• Ruled that “power to tax involves the power to destroy”
• Set up the “necessary and proper” clause
Devolution
• Deficit reduction became a primary goal of President Clinton
• Fiscal federalism and grant programs would be affected by cutbacks in the federal budget
Competitive Federalism
Under Nixon
• Clean Air Act of 1970
o Set national standards for air quality but directed the states to implement the law and enforce it
• Emergency Highway Energy Conservation Act of 1974
o The states had to agree to the highway speed limit of 55mph if they wanted to receive money to build highways
Competitive Federalism
Under Reagan
“New Federalism”
• Offered states pieces of the “marble cake” but they had to promise to develop programs on their own under the conditions of the federal government
• States given more responsibility
Creative Federalism
• The Great Society of LBJ
• Programs such as Medicare and Medicaid increased civil rights legislation
• Forced the states to rely heavily on the federal government to fund their programs
Devolution
Republican Revolution
• The republicans won back control of Congress
• Balance of federal-state responsibilities returned back to the states
Devolution
George W. Bush
• Passed a Medicare prescription drug act
• Federal budget increased which resulted in record deficits and one of the worst recessions in history
Regulation
Barack Obama
• His proposals to end the recession conflicted with devolution
• He favored massive government spending and the regulation of the banking and housing industries
• The new Republican House and the Tea Party disagreed with Obama’s imposing regulations
Education
American Recovery Act
• “the race to the top”
• Encouraged states through grants to satisfy certain educational polices such as national education standards and promoting private education