What does it mean to have a federal system of government?
Federalism is a form of government that divides power between the national government and its lower governments. In the U.S., the national government, the 50 state governments, and the 574 federally recognized American Indian and Alaska Native tribes are each sovereign governments, meaning they have the authority and autonomy to govern their respective jurisdictions.
The U.S. Constitution has competing clauses that provide for a strong national government while maintaining jurisdictional autonomy. Clauses promoting a strong national government include Article 1, Section 8, which gives Congress the authority to “make all laws which shall be necessary and proper for carrying into execution the foregoing powers… vested by this constitution”, and the national supremacy clause (Article VI), which specifies that if there is a conflict between a state law and a national law, the national law wins.
On the other hand, the Tenth Amendment specifies that "the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." This provision is often called the reserved powers and helps define the scope of the national government’s powers.
Beyond the Constitution, federal legislation has altered the relationship between the national and state governments. For example, Congress has often invoked the Commerce Clause, which grants it the power to regulate interstate and foreign commerce, to expand its influence. In the National Labor Relations Act of 1935, Congress used this clause to give itself authority to protect unionization within the states. This interpretation expanded the federal government's ability to regulate policy issues traditionally overseen by state governments.
What did the Founders think of federalism?
As these examples illustrate, the Constitution laid out a federalist system of government. More accurately, it created a hybrid system that was neither fully national (in which the federal government would have supreme authority) nor fully federal (in which state governments would need to agree to implement national law).
This hybrid design was a response to two competing fears. On the one hand, under British rule, the Founders chafed against a hierarchical, top-down system of government that was not representative of the people as a whole. Federalism – combined with other designs such as the separation of powers – would help prevent a similarly tyrannical national government by spreading power among the states.
At the same time, the federal government created by the Constitution would not be wholly dependent on the states to act. To avoid the decision-making paralysis that defined the previous system of government under the Articles of Confederation, where each state could effectively ignore the central government, the Constitution empowered the federal government to act while also ensuring local representation and state power.
The hybrid design in the proposed Constitution was controversial, leading to a series of public debates between the Federalists (who supported the design) and the anti-federalists (who opposed the strong central government it created).
James Madison, a prominent Federalist and drafter of the Constitution, was one of the most vocal defenders of this design. In Federalist No. 39, Madison defends five choices that, he argues, ensure this hybrid system supports representative democracy.
- First, the Constitution would be ratified by the people of each state, acting as separate bodies and granting each state a say in the new government.
- Second, the Constitutional amendment process blends state and national power, requiring a proposal from two-thirds of the House and Senate (or two-thirds of state legislatures) and ratification by three-fourths of the states.
- Third, the bicameral legislature allows for both national representation via the House, where members are elected directly by the people and states are represented in proportion to their populations, and state representation via the Senate, where each state has two Senators. The Electoral College system used to elect the president similarly blends state and national representation.
- Fourth, the Constitution granted the federal government the power to enforce national laws without going through state governments. This is the truly national feature of the Constitution and one of the main differences from the Articles of Confederation.
- Fifth, the federal government’s powers were enumerated and limited, leaving to the states a “residuary and inviolable sovereignty” over everything else. This provision would be institutionalized as reserved powers in the 10th Amendment.
The anti-federalists strongly disagreed with Madison’s defense of this hybrid system. One critique came in Brutus 1, which argued that the Constitution would imbue the federal government with an “absolute and uncontrollable power”.
The author of Brutus believed that the Constitution created a system that would allow the federal government to encroach on state sovereignty, rendering state power effectively meaningless. Brutus writes that the “necessary and proper” clause in Article I, Section 8 of the Constitution means “there is no need of any intervention of the state governments… to execute any one power vested in the general government”. Rather, “the power retained by individual states, small as it is, will be a clog upon the wheels of the government of the United States; the latter therefore will be naturally inclined to remove it out of the way.”
In other words, Brutus saw the Constitution as empowering rather than restricting tyrannical governmental power. Anti-federalists preferred a more localized system of empowered states, arguing that in a large and diverse nation like the U.S., it would be impossible to ensure popular representation at the national level.
How does modern federalism work?
Despite the anti-federalists’ opposition, the Constitution was ratified and gave rise to modern federalism. The result is a blended system: the federal government passes laws that are binding on the nation, while states pass laws in areas that fall outside federal jurisdiction. Sometimes conflicts between national and state laws arise and must be resolved by the Courts. In other cases, the two levels of government work consensually to implement policy.
Today, the states are primarily responsible for the public’s health, safety, and welfare, including education, health care policy, abortion, criminal justice systems, and social safety net programs. The 10th Amendment gives states wide latitude to control policy in these areas. This means that programs and laws often differ considerably across state lines, including in areas like marijuana legalization, minimum wage policy, and now abortion legalization.
Before the New Deal, a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt between 1933 and 1939, state governments had near-complete autonomy in these areas, while the federal government focused on foreign policy, interstate commerce, and international trade.
This division of powers was referred to as dual federalism (or “layer-cake” federalism), where national and state governments have clearly defined and separate spheres of power. The federal government exercised control over areas enumerated in the Constitution, while states governed other areas with limited federal interference.
Starting with the New Deal, however, the federal government began influencing how states administer these policy areas. Under Roosevelt, a more active national government took advantage of provisions such as the Commerce Clause to pass legislation affecting new policy areas.
One powerful tool for shaping state policy is the provision of money. Congress often offers states grants-in-aid to support policies and programs, attaching certain requirements that states must follow. For example, in the 1980s, Congress wanted a national drinking age of 21, but regulating alcohol is a state power. Rather than requiring states to raise their drinking age, which would likely be unconstitutional, Congress threatened to withhold 5% of federal highway funds from states that had a drinking age of less than 21 years old. Today, every state has such a law in place. Similarly, while Medicaid is designed and administered by states, to receive federal Medicaid funding, states must cover certain populations and services specified by Congress.
Even though policy areas like highways and healthcare fall outside the formal powers of the national government, Congress can still influence state policymaking in these areas through funding. This is known as cooperative federalism, where national, state, and local governments share responsibilities and work together on policy. Rather than a “layered” cake, this is a “marble” cake in which federal and state powers blend.
The nuanced nature of modern federalism is evident in the graph below, which shows program spending across different state-controlled policy areas. In some areas, such as education, highways, and policing, states allocate most of the funding and have more direct control. These patterns are closer to dual federalism. But in other areas, like health and welfare, the federal government spends much more, both directly and through grants to the states – a more cooperative form of federalism.

The Takeaway
Federalism is a hallmark of the American constitutional system. But American federalism is not a clearly-defined division of power between the state and national governments. Rather, it is a hybrid system that has evolved considerably over time, and the line between federal and state power is often unclear and contested.
Early proponents of federalism, like James Madison, argued that it was a necessary feature for representative democracy. Critics, like the author of Brutus 1, feared that the Constitutional design would create a powerful federal government that trampled state rights. Today, many of these same debates exist.

































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