Chapter 4 Federalism Section 3 Federalism Today pg

Chapter 4: Federalism Section 3: Federalism Today (pg. 112 -115)

Fiscal Federalism • The terrorist attacks on 9/11, brought the need for increased national security. • This went against New Federalism, however the national gov. has done it in the past: Land Ordinance of 1785 & The Morrill Act of 1862 (both for state universities) • This includes Grants-in aid, which started in the 20 th century • The Gov. gives money to states for many reasons. Examples low-income housing, community arts, energy assistance for the elderly, & disaster programs

Grants & Mandates • Categorical grants, block grants, and federal mandates are among the national government’s most important tools for influencing state policy.

Categorical Grants • Most federal aid is given to states in this way. • These grants can only be used for a specific purpose, such as the building of a new airport of crimefighting in a certain area. • These grants are also used to provide money to areas affected by natural disasters. • The amount of money often depends on the state’s population and states may have to contribute money in addition to the grant

Block Grants • These are grants that are given for more general purposes or for broad policy areas, such as welfare, public health, community development, or education. • States prefer these grants b/c state officials can spend the money as they see fit. • Reagan used Block Grants to give power back to the states

Federal Mandates • These are funds given to states with demands to carry out certain policies as a condition of receiving grant money. • Mandates have been used in enacting civil rights (busing)and environmental policies (Clean Air Act of 1970) • Unfunded mandates are a source of conflict b/c there is no money included (voter registration in 1993)

Issues in Federalism Today • Poverty-in 1996 Congress allowed states to manage their own welfare systems using federal block grants. Now the number of people on welfare has gone down. • Homeland Securitystarted after 9/11 but during Hurricane Katrina people questioned whethere needed to be better cooperation between the levels of government.

Issues in Federalism Today • Environment-many see that the national gov. should regulate this issue b/c state’s may not regulate it b/c of state businesses • Immigration-The national gov. is suppose to take care of this issue however they have yet to act (since the 1980 s). States have to educate, house, etc. these folks. • Health Care-Obamacare