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Federalism: Dividing Power

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Who holds which powers

Federalism divides authority between the national and state governments. Enumerated (expressed) powers are those the Constitution explicitly grants Congress in Article I, Section 8 (coin money, declare war, regulate interstate commerce). Implied powers are not listed but are justified by the Necessary and Proper (Elastic) Clause. Reserved powers belong to the states under the Tenth Amendment (schools, police, marriage, most criminal law). Concurrent powers are shared by both levels (taxing, building roads, establishing courts). The Supremacy Clause makes valid federal law prevail when national and state law conflict.

Two landmark limits

Two required cases mark the boundaries of federal power. In McCulloch v. Maryland (1819), the Court used the Necessary and Proper Clause to uphold Congress’s power to charter a national bank (an implied power) and used the Supremacy Clause to rule that Maryland could not tax it — a decision that expanded national power. In United States v. Lopez (1995), the Court struck down the Gun-Free School Zones Act, holding that carrying a gun near a school is not economic activity and does not substantially affect interstate commerce — the first modern decision to limit the Commerce Clause and protect state authority. Together they show the elastic and commerce clauses as the main battleground of federal power.

Fiscal federalism: power through money

The national government shapes state policy largely through funding. Categorical grants give money for a narrow, specified purpose with strict conditions (interstate highways). Block grants give money for a broad purpose with more state discretion. Mandates require states to act, sometimes as unfunded mandates that impose costs without federal money (parts of the Americans with Disabilities Act). By attaching conditions of aid to grants, Congress can influence areas it cannot directly regulate — for example, tying highway funds to a state’s drinking age.

Worked example

A federal law bans possessing a firearm within 1,000 feet of a school. When challenged, the government defends it under the Commerce Clause. Using US v. Lopez, explain how the Court would analyze this and why it struck the law down.

  1. 1.State the government’s theory: Congress may regulate activities that substantially affect interstate commerce, and it claims gun possession near schools does so (through crime and its costs).
  2. 2.Apply the Lopez test: the regulated activity must itself be economic or commercial for the "substantial effects" doctrine to reach it.
  3. 3.Evaluate the activity: merely possessing a gun in a school zone is not commercial or economic activity, and the chain to interstate commerce is too attenuated.
  4. 4.Note the federalism concern: criminal law and schools are traditionally reserved state powers, so accepting the government’s theory would erase limits on the commerce power.
Answer: The Court struck the law down because possessing a gun near a school is not economic activity and does not substantially affect interstate commerce; accepting the government’s reasoning would let Congress regulate nearly anything and intrude on powers reserved to the states. Lopez thus set an outer limit on the Commerce Clause.
Checkpoint

In McCulloch v. Maryland, the Supreme Court relied on the Necessary and Proper Clause to reach which conclusion?

On the exam

Pair the cases as a contrast: McCulloch expanded federal power (implied powers + supremacy), while Lopez limited it (commerce power has bounds; reserved powers matter). Free-response prompts love asking you to compare a required case with a non-required one, so know which direction each pushed.

Checkpoint

Congress gives states a large sum of money for "low-income assistance" and lets each state decide how to design and run its own program. This funding is best classified as a:

Tip

Keep the power categories straight with a quick sort: expressed = written in Article I §8; implied = justified by the elastic clause; reserved = left to states by the 10th Amendment; concurrent = held by both. When in doubt, ask "Is it listed? Justified by elastic clause? Or left to the states?"

Answer the 2 checkpoints as you read.

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