Defining Federalism

The United States encompasses many governments—over 83,000 separate units. These include municipal, county, regional, state, and federal governments as well as school districts and special districts like water and land conservation.
Federalism is a system in which two or more governments share power over the same constituents. Ultimate political authority, or sovereignty, is shared between the governments. The national government is supreme and holds powers on certain issues, and the state governments have the same sovereignty over different issues. The workings of the federal system and how national, state, and local governments relate is described as intergovernmental relations.
The concept of federalism was created when the Framers began to develop the Constitution of the United States. This form of government was derived as a compromise of power between the states and the federal government. The goal of federalism is to preserve personal liberty by separating the powers of the government so that one government or group may not dominate all powers. The Framers believed that divided power was limited power and applied this theory as they created the Constitution. This form of government is unique because instead of the national government receiving its powers from the states, or the states receiving powers from the national government, both governments derive their powers directly from the people, or constituents. It is a system of government for the people, by the people.
The Anti-Federalists were those opposed to ratifying the Constitution. They questioned the proposed power of the strong national government and pointed out the dangers of tyranny and threats to the rights and liberties that they had recently won from England. They also questioned the motives of the Founders, claiming the Constitution was class-based, ensuring the elite class held the powers of the nation. Charles Beard, in An Economic Interpretation of the Constitution (1913), maintains that the Constitution was designed to protect the propertied classes and that economic gain was the founding fathers' prime motivator.
James Madison, Alexander Hamilton, and John Jay wrote the "The Federalist Papers" as political theory in defense of the Constitution and federalism. These documents allow us a glimpse into how the Framers felt the system would operate. In Federalist #16, Alexander Hamilton argues that the national government is necessary to keep the states in harmony. He maintains that the national government should be at least equal in power to the states.
In Federalist #17, Hamilton argues that the states will always have the allegiance of the people; that people will be loyal to the body of government closest in proximity to them. Since criminal and civil justice will be the tool of the states, the people will remain obedient to the states.


James Madison contends in Federalist #39 that the Constitution is an unbiased document, as it calls for a balance of power between the state and national governments. He goes on to argue that the states are the creators of the federal government, and that because the ratification process is achieved through the states, the states are given the ability to stand independent of the federal body. Madison believed that because the federal system is a republic, and the Constitution enumerates powers to each layer of government, the new system would be superior to any other form of government.
Dual federalism describes a certain form of federalism where the national government and state governments have distinct realms of authority that do not overlap and into which the other should not intrude. Some equality of the governments is implied, with the federal government acting as the means to link the states. Dual federalism is often described as "layer cake federalism," which indicates distinct layers of government, each with their own sphere of influence. The icing on the cake (the federal government) binds the layers (the states) but also separates them.
A key feature of federalism is decentralized politics. For example, elections are conducted at the state level—even national elections such as the presidential election—allowing governing power to rest in the hands of more people. Therefore, more points of access to the government exist for its constituents. Federalism also strengthens judicial power. Because power is shared between the state and national governments, inevitably there are disputes between the two that must be arbitrated by the judicial system.
Policy decisions are decentralized in a federalist government. Policies dealing with education, labor laws, and highways are just a few examples of issues that are discussed at both the national and the state level. Public policies concerning the environment, equality, and the economy all require the centralizing power of the national government and the dispersing power of the states. While policy decisions happen at all levels, states tend to direct policies dealing with social, moral, and family topics. Most often, the states are the inventors of new policies, which stem from the needs and desires of their local constituencies.
Alternatives to federalism include unitary governments and confederations. A unitary government occurs when one centralized body is the sole governing unit. Unitary governments are often found in small, compact nations with homogeneous populations and few factional elements. Japan, France, and Great Britain, prior to an independent parliament and home rule for Scotland, are examples of unitary governments.
Confederations, such as the pre-Constitutional United States, are loose central governments that are dominated by the stronger state governments. Under the Articles of Confederation, the states were bound to the national government through a "friendly alliance." Confederations are rare in the world today. Switzerland calls itself a confederation, but it operates much like a federal system. Recently, growing cooperation between countries in the current European community has resulted in a confederation called the European Union. After the break up of the Soviet Union, Russian states discussed forming a confederation, but the plan did not survive due to the unrest that followed. Another example of a confederation was the Confederate States of America, which was formed by some southern states during the Civil War.