Federal Grants

Cooperative Federalism

• Large and growing areas of cooperation between National government and the States

• Grants-in-Aid–Grants of federal money or

other resources to States or local units.

–Goes back to time of Northwest Ordinance of 1787

Criticisms of Grants-in-Aid• Possible for Federal

government to operate in many policy areas where it doesn’t have constitutional authority

• Blur the line of division of powers in our federal system

Revenue Sharing• 1972 – 1987• Congress gave an annual

share of federal tax revenue to the States.

• Known as “shared revenues”• Almost “no strings” attached• Popular with States• Ended with Ronald Reagan

Categorical Grants• For specific, closely define

purposes

• Must use some of State’s own money (usually matching)

• Have agency to administer

• Obey federal guidelines for the grant

Block Grants• More broadly defined than

categorical grants–Health care, social services,

welfare

• Fewer strings so easier for States to use

Project Grants• To States, localities, and

private agencies (who apply for the grants)

• Many states use to fund job training

• NIH issues grants for medical research

Other forms of Aid• FBI helps State and local law

enforcement

• Army & Air Force equip and train each State’s National Guard units

• Census Bureau data essential to State and Local planning

Lulu Payments• Federal monies going to local

governments in areas where there are large federal landholdings.

• Made in lieu of (take the place of) property taxes which can not be collected from Federal government

State Aid to Fed Govt• State and local election

officials conduct national elections

• Naturalization takes place most often in State, not federal, courts

• Federal criminals often arrested by State/Local officials

Interstate Compacts• No State may enter into any

treaty, alliance, confederation.

• These kinds of arrangements are what causes so much trouble under the Articles of Confederation.

Interstate Compacts2

• However, the States may, with the consent of Congress, enter into interstate compacts —agreements among themselves and with foreign states.

• Over 200 compacts are now in force for law enforcement, resource development, conservation

Full Faith and Credit Clause

• Of the Constitution

• ensures that States recognize the laws and, documents, and court proceedings of the other States

Exceptions to FF&C (1) One State cannot enforce

another State’s criminal laws. and,

(2) Full faith and credit need not be given to certain divorces granted by one State to residents of another State.

Extradition• Extradition is the

legal process by which a fugitive from justice in one State is returned to that State.

• Extradition is upheld through Article IV, Section 2, Clause 2 of the Constitution.

• Governors are the State executives that handle the extradition process.

• If governor is unwilling to return a fugitive to a State, federal courts can intervene and order governor to do so.

Privileges and Immunities• The Privileges and Immunities

Clause provides that no State can draw unreasonable distinctions between its own residents and those persons who happen to live in other States.

Privileges and Immunities2

• States cannot, for example, pay lower welfare benefits to newly arrived residents than it does to its long-term residents, Saens v. Roe, 1999.

• However, States can draw reasonable distinctions between its own residents and those of other space, such as charging out-of-State residents higher tuition for State universities than in-State residents.