What is Federalism? Understanding Federalism in the United States
Updated: Aug 27
TL;DR
Federalism is the constitutional division of governmental authority between the federal government and the states. The Constitution gives the federal government delegated powers while preserving significant authority for the states and the people. Understanding Federalism means understanding how this division of power was created, how it has developed, and how it helps place constitutional limits on government power.
Key Takeaways
Federalism divides governmental authority between the federal government and the states.
The federal government exercises powers delegated by the Constitution, while other powers are reserved to the states or the people.
The Tenth Amendment provides an important constitutional foundation for understanding reserved powers.
Federal and state governments may exercise concurrent powers, meaning their authority can overlap in certain areas.
States' rights and Federalism are related, but states themselves remain subject to constitutional limitations.
Dual Federalism and Cooperative Federalism are historical models used to describe different approaches to the federal-state relationship.
Federalism works alongside other constitutional principles, including Separation of Powers, to divide governmental authority.
The Founders debated how to create a government strong enough to govern while preventing the concentration of power from threatening liberty.
Ultimately, understanding Federalism requires asking a fundamental constitutional question: Who has the constitutional authority to act?
Introduction
What is Federalism, and why is it important?
What does Federalism have to do with states' rights?
And how does Federalism help protect liberty?
The United States is often described as a federal republic, but what does that actually mean?
At its simplest, Federalism is a system of government in which constitutional authority is divided between a national government and constituent states. The United States Constitution establishes a federal government with powers delegated to it by the Constitution while preserving substantial authority for the states and the people.
But Federalism is more than simply having a federal government and fifty state governments.
The American system developed from the nation's experience under the Articles of Confederation, the debates of the Constitutional Convention, the Federalist and Anti-Federalist arguments over ratification, and the Constitution's division of governmental authority.
Understanding Federalism in the United States therefore requires understanding both where governmental power is located and why the Framers saw the division of governmental power as an important safeguard for liberty.
What Is Federalism?
Federalism definition
Federalism is a system of government in which power is constitutionally divided between a national government and constituent states.
In the American system, the Constitution delegates certain powers to the federal government while reserving other powers to the states or the people.
This makes Federalism different from a unitary system, in which ultimate constitutional authority rests with a central government.
It is also different from a confederation, in which sovereign states or political communities retain primary authority and delegate limited powers to a common government.
The Constitution created a federal system distinct from both a unitary government and the earlier Confederation. It established a national government with constitutionally defined powers while preserving a distinct sphere of authority for the states.
That division of power is one of the foundational constitutional principles of the American republic.
Federalism in simple terms
A simple way to understand Federalism is to think of it as a vertical division of governmental power.
The federal government exercises powers delegated to it by the Constitution.
State governments exercise powers reserved to the states and the people within the constitutional system.
Neither level of government possesses unlimited constitutional authority.
This is one reason Federalism is closely connected to the American concept of limited government.
Federalism Before the Constitution
The idea of dividing governmental authority between the states and a central government did not begin with the Constitution. The United States had already experimented with this arrangement under the Articles of Confederation.
Before the Constitution was written, the states operated under the Articles of Confederation. The Articles served as the nation's first constitution from 1781 until the Constitution took effect in 1789.
The Articles described the Union as a "firm league of friendship" among the states. Article II also declared that each state retained its "sovereignty, freedom and independence," along with every power not expressly delegated to the United States in Congress.
The Articles created a national government with considerably less authority than the federal government established by the Constitution, particularly in its ability to raise revenue, regulate interstate commerce, and enforce national decisions.
The Confederation Congress faced significant limitations. It lacked the power to impose taxes directly on individuals and lacked the authority to regulate interstate commerce in the manner later granted to Congress by the Constitution. Instead, Congress depended heavily on requisitions from the states for revenue.
By the 1780s, many Americans believed the Confederation government was too weak to address important national problems. James Madison argued during the 1788 Virginia Ratifying Convention that the experience under the Confederation demonstrated the need for a government capable of obtaining the resources necessary to function effectively.
The Framers therefore faced a difficult problem:
How could Americans create a government strong enough to govern effectively without creating a government powerful enough to threaten liberty?
That question became central to the debates that produced the Constitution.
Federalism and the Constitutional Convention
The Constitutional Convention met in Philadelphia in 1787.
The Convention was originally called to revise the Articles of Confederation, but by mid-June the delegates had decided to draft an entirely new frame of government.
The resulting Constitution established a stronger federal government while retaining a constitutional role for the states.
This distinction matters.
The Framers did not simply replace the states with a national government.
Nor did they simply continue the Articles of Confederation under a new name.
Instead, the Constitution created a federal system in which governmental authority was divided between the federal government and the states.
James Madison later described this arrangement in Federalist No. 51 as a "compound republic." He explained that the power surrendered by the people was "first divided between two distinct governments," and that the portion allotted to each was then subdivided among separate departments.
That produced what Madison called a "double security" for the rights of the people. He explained that "the different governments will control each other, at the same time that each will be controlled by itself."
The Federalism established by the Constitution therefore works alongside another constitutional principle: Separation of Powers.
Federalism divides authority between levels of government.
Separation of Powers divides federal authority among branches of government.
For a deeper explanation of that second principle, see Separation of Powers: How the Constitution Divides Government.
Want to learn more about the Federalist and anti-Federalist debate through the quotes and writings of the Founders themselves? Our 12-week Constitution Course provides insight into not only these debates, but the established framework and philosophies that our Founders ratified and endorsed.
Federalism and the Federalist–Anti-Federalist Debate
The ratification debate helps explain why the division of authority between the federal government and the states became such an important question in the new Constitution.
The Federalists supported ratification of the Constitution and generally argued that the nation needed a federal government with greater authority than the government established under the Articles of Confederation.
The Anti-Federalists feared that the proposed Constitution would create a government capable of consolidating too much power. Their concerns included the concentration of national power, the loss of state authority, and the absence of explicit protections for individual rights.
The debate was therefore not simply about whether government should be "strong" or "weak."
It concerned a deeper question:
How could republican government possess enough authority to govern while remaining subject to constitutional limits?
Federalists argued that the Constitution's structure provided safeguards against centralized power. Madison's Federalist No. 39, for example, explained the proposed government's combination of federal and national characteristics, while Federalist No. 51 described the division of power between the federal government and the states as a "double security" for the rights of the people.
Anti-Federalists worried that the Constitution gave the federal government powers broad enough to overwhelm the states and eventually consolidate political authority at the national level.
These competing arguments remain important for understanding American Federalism.
For a deeper examination of that historical debate, see Federalism vs. Anti-Federalism.
For a focused examination of the earliest Federalist and Anti-Federalist arguments surrounding ratification, see Federalist No. 1 vs. Anti-Federalist No. 1.
Federalism in the Constitution
The Constitution does not contain a single provision labeled "Federalism."
Instead, Federalism in the Constitution emerges from the document's overall structure and from the way it distributes governmental authority.
Several constitutional provisions are particularly important.
Delegated Powers
The federal government is a government of constitutionally delegated powers.
Article I, Section 8, for example, identifies specific powers delegated to Congress.
Article II establishes the executive branch and enumerates the President's constitutional powers, while Article III establishes the federal judicial power.
James Madison summarized the principle in Federalist No. 45, writing that "The powers delegated by the proposed Constitution to the federal government are few and defined," while those remaining with the states were "numerous and indefinite."
This structure matters because the federal government does not begin with unlimited governmental authority and then surrender certain powers to the states.
Rather, the Constitution establishes the federal government's authority through powers delegated to it by the Constitution.
That principle provides an important foundation for the constitutional concept of limited government.
Reserved Powers
The Tenth Amendment states:
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
The Tenth Amendment is therefore an important part of understanding Federalism.
It addresses the relationship between powers delegated to the federal government and powers that remain with the states or the people.
This is also an important part of Paul's argument: Federalism cannot mean merely acknowledging that states exist. It requires recognizing that the Constitution places boundaries around federal authority.
Concurrent Powers
Federalism does not mean that federal and state powers never overlap.
Some governmental powers are concurrent powers, meaning both the federal and state governments may exercise them within their respective constitutional spheres.
Examples of concurrent powers include taxation, borrowing money, and establishing courts, although the scope of each power differs according to the Constitution and applicable state law.
The existence of concurrent powers is important because it prevents us from understanding Federalism as two completely isolated systems of government.
Federal and state governments sometimes operate independently, sometimes interact, and sometimes exercise overlapping authority.
The constitutional question is not simply whether both governments are involved.
The question is whether each government is acting within the authority granted to it.
The Supremacy Clause
Article VI contains the Constitution's Supremacy Clause, which establishes the Constitution, federal laws made in pursuance of it, and treaties made under federal authority as the supreme law of the land.
This establishes an important principle of Federalism: when a constitutionally valid federal law conflicts with state law, federal law prevails.
But the phrase "made in pursuance" is significant.
Federal supremacy does not mean that every action taken by the federal government automatically overrides the Constitution or the states.
The federal government remains subject to the Constitution.
That distinction becomes important when considering the limits of federal authority.
What Is a Federal Republic?
The United States is a federal republic.
"Federal republic" is a descriptive term for the governmental system established by the Constitution; the Constitution itself does not use that exact phrase. It does, however, require the United States to guarantee every state a "Republican Form of Government."
The two terms describe different characteristics of the American system.
Federal
Federal describes the division of governmental authority between the federal government and the states.
Republic
Republic describes a system of government in which political authority is exercised through representatives chosen by the people rather than through direct popular rule.
The United States therefore combines these principles.
It is a federal system because governmental authority is divided between the federal government and the states.
It is a republic because governmental authority is exercised through representative institutions.
Understanding the difference helps explain why "federal republic" and Federalism are related but not interchangeable terms.
How Does Federalism Limit Government Power?
Federalism is not merely an administrative arrangement.
It creates multiple levels of government operating within a constitutional framework.
Instead of placing all governmental authority in a single national government, the Constitution divides authority between the federal government and the states.
James Madison connected this structure to the protection of liberty. In Federalist No. 51, he described America as a "compound republic," in which power was "first divided between two distinct governments." He argued that this created a "double security" for the rights of the people because the different governments could control one another while each remained subject to its own internal checks. (constitution.congress.gov)
Madison's argument provides an important primary-source foundation for understanding Federalism as a safeguard against concentrated governmental power.
How Does Federalism Guard Against Tyranny?
Federalism can help guard against tyranny by placing governmental authority at more than one level rather than concentrating all governmental power in a single national government.
If every governmental power were centralized in a single national government, there would be fewer structural divisions between the people and the exercise of governmental authority.
Federalism creates another layer of constitutional division.
The federal government exercises powers delegated to it by the Constitution.
The states retain powers not delegated to the federal government and not prohibited to them.
And the Constitution recognizes rights and powers belonging to the people.
This does not make government incapable of exercising power.
Rather, it makes the exercise of governmental power subject to constitutional boundaries and competing institutions.
That is an important part of the American constitutional philosophy of limited government.
Federalism and States' Rights
The phrase states' rights is closely associated with Federalism, but the two terms are not identical, and "states' rights" is not itself a phrase used in the Constitution.
Federalism describes the constitutional structure.
States' rights generally refers to claims concerning the powers and authority constitutionally retained by the states.
The Tenth Amendment provides an important textual foundation for understanding those retained powers. (constitution.congress.gov)
But states' rights do not mean that state governments possess unlimited authority.
The Constitution expressly prohibits states from exercising certain powers, including entering treaties or confederations, coining money, and passing bills of attainder or ex post facto laws. (archives.gov)
The states themselves are bound by the Constitution.
Federalism therefore creates constitutional limits in both directions.
The federal government cannot simply assume powers that the Constitution has not delegated to it.
The states cannot disregard constitutional limitations simply because they believe a particular action belongs within their authority.
The central question is:
What does the Constitution authorize?
This question lies at the heart of the American Federalism debate.
Examples of Federalism
Looking at Federalism examples can make the concept easier to understand.
Taxation
Both federal and state governments possess taxation authority.
The federal government exercises taxation powers granted to it by the Constitution, while states possess their own taxation authority within constitutional limits.
Taxation therefore provides a useful example of overlapping, or concurrent, governmental powers.
Criminal Law
States possess broad authority over criminal law within their jurisdictions.
The federal government also possesses criminal-law authority in areas connected to powers granted by the Constitution. Federal criminal jurisdiction is not a general police power; federal criminal laws generally must be connected to an enumerated federal power or another constitutional source of authority.
Federal and state criminal laws can therefore exist alongside one another.
Education
Education has historically been administered primarily at the state and local levels, while the federal government has become involved through constitutionally authorized spending programs and other federal powers. Federal education programs therefore provide an example of how Federalism can involve cooperation between levels of government without giving the federal government general control over education.
Elections
States administer elections under their own laws, including the mechanics of federal elections, while the Constitution gives Congress authority to regulate the times, places, and manner of congressional elections.
Again, authority is divided rather than completely isolated.
Transportation
State governments exercise extensive authority over transportation infrastructure within their jurisdictions, while the federal government exercises authority over aspects of transportation connected to interstate commerce and other constitutionally granted powers.
These examples demonstrate why Federalism cannot be reduced to a simple separation in which the federal government handles one list of subjects and the states handle another.
The constitutional relationship is more complex.
Dual Federalism
Dual Federalism is a model used to describe certain periods and interpretations in the development of American Federalism.
What Is Dual Federalism?
Dual Federalism describes a conception of Federalism in which the federal government and state governments operate within relatively distinct spheres of authority.
Later scholars have sometimes described this model using the metaphor of a "layer cake," with different levels of government occupying different layers.
Under this model, the federal government exercises its constitutionally delegated powers while states retain authority over matters traditionally understood as belonging to their sphere.
Dual Federalism can therefore be useful for understanding periods of American history in which courts, political leaders, and scholars placed greater emphasis on distinct state and federal spheres of responsibility.
However, it should not be interpreted to mean that federal and state authority was ever completely isolated.
The Constitution itself includes concurrent powers and provisions requiring interaction between the two levels of government.
Cooperative Federalism
Cooperative Federalism is another model used to describe the relationship between the federal and state governments.
Rather than emphasizing relatively distinct spheres, Cooperative Federalism emphasizes interaction and cooperation between levels of government.
Federal and state governments may work together on programs or policy areas in which their responsibilities overlap or where federal programs involve state administration.
Dual vs. Cooperative Federalism
The distinction can be summarized simply:
Dual Federalism | Cooperative Federalism | |
Basic emphasis | Distinct spheres of authority | Shared responsibilities |
Common metaphor | "Layer cake" | "Marble cake" |
Relationship | Greater separation | Greater cooperation |
Focus | Divided authority | Intergovernmental interaction |
"Layer cake" and "marble cake" are later metaphors used to describe these models; neither is a term found in the Constitution.
The distinction is useful for understanding the historical development of Federalism.
Neither model, however, completely defines the constitutional system.
The Constitution provides the underlying structure, while historical models describe how that structure has been understood and administered at different times.
Federalism vs. Separation of Powers
Federalism and Separation of Powers are closely related but distinct constitutional principles.
Federalism divides governmental authority vertically between the federal government and the states.
Separation of Powers divides federal governmental authority horizontally among the legislative, executive, and judicial branches.
The two principles operate simultaneously.
The federal government is divided into three branches.
The federal government also exists alongside the governments of the several states.
James Madison's description of the "compound republic" in Federalist No. 51 helps demonstrate how these two forms of division operate together: governmental authority is first divided between the federal government and the states, and then federal authority is further divided among separate branches. (constitution.congress.gov)
For a deeper explanation, see Separation of Powers: How the Constitution Divides Government.
Why Federalism Matters to Constitutional Government
Federalism matters because the Constitution does more than establish a government.
It establishes limited constitutional government.
The federal government possesses important powers, but those powers are defined by the Constitution.
The states retain significant authority.
The Constitution also recognizes rights belonging to the people and reserves certain powers to the states and the people. Government cannot simply assume authority that the Constitution does not grant it.
This structure reflects a fundamental concern of the American constitutional system: how to create a government capable of governing while preventing the concentration of power from threatening liberty.
Federalism matters because the division of governmental authority can serve as a safeguard against concentrated power.
Federalism is important not merely because America has states and a federal government, but because the division of governmental authority creates another constitutional safeguard against the concentration of power.
That does not mean every dispute between the federal government and the states has an easy answer.
It means that Federalism requires us to ask a more fundamental question:
Who has the constitutional authority to act?
The answer cannot simply be "whoever has the most political power."
It must begin with the Constitution.
Federalism in the Words of the Founders
Primary sources provide some of the clearest evidence for understanding Federalism.
James Madison — Federalist No. 51
Madison described America as a "compound republic," in which power was "first divided between two distinct governments." He argued that this created a "double security" for the rights of the people because the different governments could control each other while each was also controlled by itself.
James Madison — Federalist No. 39
Madison described the proposed Constitution as possessing both federal and national characteristics, demonstrating that the constitutional system could not be neatly reduced to either category alone. He concluded that the Constitution was "neither a national nor a federal constitution; but a composition of both."
James Madison — Federalist No. 45
Madison wrote that "The powers delegated by the proposed Constitution to the Federal Government, are few and defined," while those remaining with the states were "numerous and indefinite." He explained that the powers reserved to the states would extend to the ordinary matters affecting the "lives, liberties and properties of the people" and the internal order and prosperity of the states.
The Tenth Amendment
The Tenth Amendment explicitly addresses powers not delegated to the United States and not prohibited to the states, reserving those powers to the states or the people.
Taken together, these sources demonstrate that Federalism was not merely a technical arrangement of governmental administration.
The Founders were wrestling with fundamental questions of governmental power, constitutional authority, representation, state authority, and liberty.
Conclusion: Understanding Federalism
Federalism is the constitutional division of governmental authority between the federal government and the states.
It emerged from America's experience under the Articles of Confederation and became a defining characteristic of the Constitution created in 1787.
The system gives the federal government meaningful powers while preserving significant authority for the states and the people.
It includes delegated powers, reserved powers, and concurrent powers.
It has been described through different historical models, including dual federalism and cooperative federalism.
And throughout American history, Federalism has raised a fundamental constitutional question:
What powers has the federal government been granted, and how can those powers be prevented from becoming unlimited?
For The American View, the answer begins with the constitutional structure itself.
Federalism is not simply a description of the relationship between Washington and the states. It is part of a broader constitutional design intended to divide governmental authority, establish limits on governmental power, and preserve liberty.
Understanding what Federalism is therefore requires understanding not only where governmental power resides, but also why the Framers divided it in the first place.
Paul Engel — Contributor
Paul Engel is a constitutional educator and contributor to The American View. His original work on Federalism examined the relationship between federal and state authority, states' rights, limited government, and the constitutional safeguards designed to prevent the concentration of governmental power.
His perspective emphasizes the importance of understanding governmental authority through the Constitution itself—particularly the division of powers between the federal government and the states. His contribution to this article provided the foundation for The American View's expanded examination of Federalism, its historical development, and its role within the broader constitutional structure.
Paul's work reflects The American View's commitment to examining American government through the Constitution, historical context, and the ideas of the Founders.
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