Power Shifts In Intergovernmental Relations: A Result Of Fiscal Feder

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Power Shifts in Intergovernmental Relations: A Result of Fiscal Federalism

Fiscal federalism is the result of the states' dependence on the national government for funds. Until 1913, the national government had minimal monetary resources, thus possessing little control over the affairs of the states. Once effected, the Sixteenth Amendment resulted in the amassing of government funds on the national level. This reserve of money enabled the national government to initiate a multitude of national programs--such as the interstate highway--as well as provide grants to the states. It is primarily through these grants that the national government can exert influence over state affairs; for, by designating
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In addition to Social Security, the government also established the Federal Emergency Relief Administration in 1933 which provided states with money for the needy. The Aid to Families with
Dependent Children (AFDC) program was state-administered and federally funded, another example of state dependence on the national government. The Works
Progress Administration is one of the multitude of programs implemented to provide employment to aid in recovery. Formerly a state responsibility, the national government became the primary source for relief. The national government broadened its powers in response to this crisis and began to supersede the state governments in decision-making. As a result, the states began to relinquish their power and defer to as well as depend on the national government. This increase in federal power did not exist solely under
Roosevelt's Depression-era administration but extended over to later administrations as well.
The remainder of the century until the present was marked by legislation limiting the states even further. During the Great Society of the 1960s,
Congress passed Johnson's proposals for increased federal aid to education-- augmenting federal control and involvement over education, a power reserved for the states. Moreover, Congress passed Medicare and Medicaid, health insurance plans for the elderly and the poor or disabled, respectively, expanding the federal role in social welfare

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