New Federalism

Definition

New Federalism is a political philosophy that aims to shift power and responsibility from the federal government back to the states, emphasizing a decentralized approach to governance. This concept became prominent in the 1970s and 1980s, particularly under President Richard Nixon, as a response to the perceived overreach of federal authority and the desire for state and local governments to have more control over programs and funding.

5 Must Know Facts For Your Next Test

1. New Federalism was a significant shift from the earlier era of expansive federal programs established during the New Deal and Great Society.
2. One of the key features of New Federalism was the introduction of block grants, which allowed states to have more control over how federal funds were spent.
3. Richard Nixon's administration was pivotal in promoting New Federalism, seeking to return power to state governments through various initiatives.
4. The concept gained further traction under President Ronald Reagan, who advocated for reduced federal intervention in state affairs.
5. Critics of New Federalism argued that it could lead to disparities in services and funding among states, particularly affecting lower-income areas.

Review Questions

• How did New Federalism alter the relationship between state and federal governments?
  • New Federalism significantly changed the dynamics between state and federal governments by promoting a shift in power from Washington D.C. back to state capitals. This approach encouraged states to take on greater responsibilities for social programs and funding decisions that were previously handled by the federal government. As a result, states gained more authority to address their unique needs and challenges, leading to a more decentralized form of governance.
• Discuss the implications of block grants as a tool of New Federalism and how they differ from categorical grants.
  • Block grants are a critical element of New Federalism as they provide states with federal funds that can be used flexibly across various programs. Unlike categorical grants, which are earmarked for specific purposes with strict guidelines, block grants allow states greater discretion in allocating resources according to their needs. This flexibility aims to empower states while also promoting efficiency and innovation in program implementation.
• Evaluate the long-term effects of New Federalism on public policy and governance in the United States.
  • The long-term effects of New Federalism have been profound in shaping public policy and governance structures within the United States. By emphasizing state control and reducing federal oversight, it has led to varied approaches in addressing social issues across different states, creating disparities in service delivery. Additionally, this shift has sparked ongoing debates about the role of government at both levels, influencing policy directions and fostering discussions around fiscal responsibility, state autonomy, and equity in access to resources.

Related terms

Devolution: The transfer of powers and responsibilities from the federal government to state or local governments.

Block Grants: Federal funds given to states or local governments for broad purposes, allowing them greater flexibility in how to allocate and use the money.

Revenue Sharing:

A policy that involves the distribution of federal funds to state and local governments, giving them discretion in how to spend that money.