Models of Federalism and Types of Grants

Duel Federalism- “Layer Cake”

• 1787-1937• Emphasis on separate spheres of influence• Each is separate and supreme within its own

areas• Tension over Cooperation

Cooperative Federalism- “Marble Cake”

• 1927-1960’s• Acknowledges the overlap between national

and state powers• Joint and cooperative, not separate • Shared power

New Federalism

• 1972-?• Started by Nixon as revenue sharing• Revenue Sharing- money to the states, no

strings attached• Block Grants- distribute tax money to states

for them to use in broad areas (11% today)• Examples- health care, education, community

development

Fiscal Federalism

• Regan’s Challenge to Nixon’s revenue sharing• National government exercised control over the

states• Examples- drinking age, speed limits• Categorical Grants- can only be used for a specific

purpose, always rules and regulations attached (80% today)

• Project Grants- money to states for a specific purpose/project