Question

How has the New Federalism, since 1964, affected state and local governments in the delivery of services?

Answer 1

Richard Nixon, one of the most disgraced Presidents of the United States, made a significant contribution to the debate over the division of power in the federalist system before his resignation. He presented a vision of what he called " New federalism" detailing his agenda revolving around the idea of turning over the control of some federal programs to state/local governments and institute revenue sharing, block grants etc.

New Federalism is a political philosophy of the transfer of certain powers from the United States federal government back to the states and local governments. It also involves the federal government providing block grants to the states to resolve a social issues.

States are finding it necessary to grapple with important challenges on their own like ensuring a living wage, educating future workforce or managing the challenges of a diversifying society. The reason is that American federalism embodies a fundamental tension. Even after nearly 50 years, the United States is still trying to grapple the issue of division of task and responsibilities between Washington and state/local governments. However due to the change in agenda of each new administration, there has still not been a clear definition/division. Both the U.S. federalism or intergovernmental cooperation have a checkered history. The federal government excels at raising revenue because of its size and scope. The state government excel at spending it because of their proximity to local conditions and situation.

The withdrawal of the Washington as a reliable partner has led to a explosion of innovation at the sub-national scale. Federalism is being reinvented without the participation of the federal government. States, local governments, private business and civil society are stepping up to fill up the vaccum of federal participation. The future seems likely to develop around the structure where the federal government will have to build its programs around the innovations of the states and localities rather than the other way around.