The Relationship Between The States And Federal Government Is Broken
By Adam A. Millsap – December 13, 2024
When America was founded, states were viewed as the most powerful unit of government. How times have changed. Today, the federal government dominates policymaking and our attention, while states are often seen as little more than administrative units tasked with executing federal policies. The proper relationship between the states and the federal government is broken, but in a new booklet my co-authors and I show how it can be repaired.
Since our founding, the federal government’s powers have been limited, first by the Articles of Confederation and then by the Constitution. The founders expected the federal government to deal with issues of national concern, such as protecting the border, entering into treaties with other nations, and settling disputes between the states. They viewed states as the proper home of most government action, including regulating industry, providing schools, levying income and property taxes, and exercising police powers.
Over the last 250 years, the federal government has encroached on the responsibilities of the states. One way this shows up is the amount of resources used by the federal government. In 1929, prior to the Great Depression, federal spending as a percentage of GDP was 3%. In 2023, it was 22%. In the 20th century alone, the federal government created the Securities and Exchange Commission, the Department of Housing and Urban Development, the Department of Education, the Environmental Protection Agency, the Federal Bureau of Investigation, and dozens of other agencies that duplicated and eventually superseded similar state-level capabilities. Instead of the states and the federal government retaining their own powers and responsibilities, as the Constitution intended, the states have become junior players in American affairs.
The current relationship between the federal and state governments was not inevitable, and it does not have to persist. Moreover, both the federal and state governments have an interest in restoring the proper relationship. As we say in the booklet:
“Federal and State government, as well as the people, are all part of an overarching constitutional structure. In the words of Chief Justice Salmon Chase, “the preservation of the States, and the maintenance of their governments, are as much within the design and care of the Constitution as the preservation of the Union and the maintenance of the National government.” …. As a further practical matter, the intended division of powers between federal and state government would ensure that citizens can exert influence over both national and state matters, rather than risk having to subordinate their state and local demands to their national demands.”
There are executive and legislative reforms that would help restore the proper relationship between states and the federal government. First, the President should promulgate a rule requiring federal grants to be expressed as a percentage of implied state contributions. For example, if the Department of Justice provides a grant to support hiring a new police officer, it should clearly state what percentage of the overall lifetime cost of that officer the grant is covering. That is, if an officer earns $100,000 per year over a 25-year career and the federal grant is for $1 million, it would cover 40% of the expected total cost. This level of transparency would ensure states recognize the total cost of accepting federal grants, which may cause states to rethink accepting them and thus weaken the federal government’s hold on the states.
On the legislative side, Congress should prohibit the federal government from dictating which state official or agency accepts a federal grant and the process used to make that decision. Currently, many federal grants or other assistance programs specify which state official must accept and administer the grant. These requirements unduly interfere with state political processes. Instead, state officials should decide how the state accepts and who administers federal grants and aid.
Related, federal grants should be delivered as block grants so state officials have the final say in exactly how a grant is used. This ensures that state officials and the local officials they empower are the primary points of contact for matters of local concern. This makes it easier for citizens to know whom to hold accountable if programs do not function properly.
The booklet has other reforms for restoring the proper relationship between the federal government and state governments, as well as reforms for restoring the proper relationship between the legislative and executive branches of the federal government. As we approach the 250th anniversary of the Declaration of Independence, there is no better time to reform government at all levels to conform with the vision of our founders—a republic that is accountable to its citizens and protects their unalienable rights to “…Life, Liberty and the pursuit of Happiness.”
Adam Millsap writes about state and local policy and urban economic issues. Follow me on Twitter or LinkedIn. Check out my website.
Good article. Alternative media are bursting with good one-off ideas like the example highlighted in this piece. Would legislation to enact this policy ever make it out of any Congressional committee, let alone become law? Will Congress ever vote to restrict its own power in any meaningful way?
We should all live so long!
A states-driven Article V convention to propose amendments to the Constitution is the only legal, practical way to rein in an out-of-control federal government. The Framers (especially Mason & Madison) foresaw the need for a states-driven Article V process, but there is no way they could have foreseen how badly the need would arise by 2024!
More at: https://huntforliberty.com/how-to-rein-in-our-runaway-federal-govt/