The Federal System in the United States

Module 2.2: Powers & Limits of the US Federal Government

Basic Relationships in a Federal System

• Vertical Federalism– Between strong states and a

strong central government

• Horizontal Federalism– Between and among the

states

• Most disputes in applying federalism focus on the Vertical relationship

State A

Federal Gov’t

State CState B

Classes of Power in The United States

• Classes of power– Enumerated

• Express – Article 1 section 8, clauses 1-17, Amendment 16

• Implied – Article 1 section 8, clause 18

– Concurrent • compare federal constitution with state constitutions

– Reserved • Amendment 10, 21

– Denied (or prohibited)• To central government

– Article 1.9, Amendments 1-8,13,15,19,24,26,27• To member states

– Article 1.10, Amendments 13-15,19,24,26

Foundations

• McCulloch v. Maryland (1819)– Baltimore Branch of the Bank of the United States, a

federal agency, shut down by Maryland tax collectors– Maryland claims concurrent power

• To tax• To regulate commerce

– SCotUS decision:• concurrent power does exist

BUT• States cannot tax federal government agencies

– Recognizing this power would mean individual states could overwhelm and destroy federal government

Foundations

• Gibbons v. Ogden (1824)– Gibbons operates a Fulton steam ferryboat between

NY and NJ with exclusive NY charter– Ogden obtains a license to operate boats in interstate

waters from the federal government– Gibbons claims Ogden charter violates exclusive

charter from NY– SCotUS decision:

• US charters apply in states– Provided commerce crosses state lines

– Sets stage for Dual Federalism

The Tension • Preemption

– The assumption of powers by central government

• Legislative• Executive• Regulatory

– Previously held by states– Reinforced by Supremacy Clause in

Article 6• Devolution

– The transfer of powers from central government

• Legislative• Executive • Regulatory

– Return powers to states• Recognize reserved state powers

– Reinforced by Amendment 10

State A State CState B

Federal Gov’t