- History Jared Armsworthy
Name _____________________________ Class _________________ Date __________________ Section 3 continued Section Summary FISCAL FEDERALISM Today the national government influences state policies—and its own priorities—through fiscal federalism, a system of spending, taxing, and What makes up the system of fiscal federalism? providing aid in the federal system. The national government has been assisting states as far back as the _______________________ Articles of Confederation, often giving states grants of _______________________ land to sell or do with as they like. In the twentieth _______________________ century, the national government’s power increased with the use of grants-in-aid—money and other resources that the national government provides to pay for state and local activities, ranging from low-income housing to disaster preparedness programs. These grants are funded by federal income taxes. GRANTS AND MANDATES The national government frequently uses categorical grants, or federal grants that can only be used for a specific purpose, or category, of state and local spending, to give aid to states. These kinds of grants can fund a variety of programs, from the construction of a new airport to relief efforts in a region affected by a natural disaster. States are often expected to also contribute money toward the project being funded, and the quantity of the categorical grant may depend on the state’s population. Block grants are federal grants that are given for more general purposes than a categorical grant or for broad policy areas, such as welfare or education. States can spend the money as they see fit. When the era of new federalism began in the 1980s, many categorical grants were changed to block grants. Federal mandates are the third way the national What is the main difference government gives monetary aid to states. Leaving between block grants and much less spending control to the states than federal mandates? categorical or block grants do, federal mandates are _______________________ demands to carry out certain policies as a condition of _______________________ receiving grant money. In the past, the mandates have been applied—and justified by the equal protection _______________________ clause of the Fourteenth Amendment—to establish _______________________ affirmative action and certain environmental regulations, including the Clean Air Act of 1970. States who do not meet the demands of a mandate Original content Copyright © by Holt McDougal. Additions and changes to the original content are the responsibility of the instructor. Chapter 4 45 Interactive Reader and Study Guide
Name _____________________________ Class _________________ Date __________________ Section 3 continued may lose the funding. Additionally, some federal mandates are unfunded—a source of contention between the two levels of government. ISSUES IN FEDERALISM TODAY Federalism is at the center of many national debates today. One such debate involves welfare systems, over which the states have had control through federal block grants since 1996. Although the number of people on welfare has decreased since this shift in authority, some critics argue that the decrease is simply the result of a strong economy and contend that the states will not always be able to handle the responsibility of a welfare system. Also the recent establishment of the Department of Homeland Security—which involves federal, state, and local According to supporters, governments—has raised questions over how different why would it be better to levels of government can better work together. address environmental The environment is another source of conflict issues at the state level? between the national and state governments. While _______________________ protecting the environment has traditionally been the _______________________ responsibility of the national government, many _______________________ Americans believe that state and local governments are better be able to address environmental issues, as _______________________ they are familiar with regional needs and threats. Immigration and health care are two more issues that continue to challenge all levels of government. While states have assumed many costs of immigration-related issues, such as health and social services, Congress has yet to pass major reforms at the national level. Additionally, neither Congress nor the state governments have resolved how to address the rising costs of medical services and the millions of Americans who do not have health insurance. Original content Copyright © by Holt McDougal. Additions and changes to the original content are the responsibility of the instructor. Chapter 4 46 Interactive Reader and Study Guide