Perhaps the foremost characteristic of the American political system is its division of authority between a national government and the states. The first U.S. government, established by the Articles of Confederation, was essentially a union of states.
In establishing the basis for a stronger national government, the U.S. Constitution also made provisions for safeguarding state interests. The result was the creation of a federal system in which sovereignty was vested in both national and state governments. The Constitution enumerates the general powers of the national government and grants it implied powers through the "necessary and proper" clause. Other powers are reserved to the states by the Tenth Amendment.
From 1789 to 1865, the nation's survival was at issue. The states found it convenient at times to argue that their sovereignty took precedence over national authority. In the end, it took the Civil War to cement the idea that the United States was a union of people, not of states. From 1865 to 1937, federalism reflected the doctrine that certain policy areas were the exclusive responsibility of the national government, while others belonged exclusively to the states. This constitutional position permitted the laissez-faire doctrine that big business was largely beyond governmental control. It also allowed the states in their public policies to discriminate against African Americans. Federalism in a form recognizable today began to emerge in the late 1930s.
In the areas of commerce, taxation, spending, civil rights and civil liberties, among others, the federal government now has an important role, one that is the inevitable consequence of the increasing complexity of American society and the interdependence of its people. National, state and local officials now work closely together to solve the country's problems, a situation that is described as cooperative federalism. Grants-in-aid from Washington to the states and localities have been the chief instrument of national influence. States and localities have received billions in federal assistance; in accepting that money, they have also accepted both federal restrictions on its use and the national policy priorities that underlie the granting of the money.
In recent years, the relationship between the nation and the states has again become a priority issue. Power is shifting downward to the states, and a new balance in the ever-evolving system of U.S. federalism is taking place. This change, as has been true throughout U.S. history, has sprung from the demands of the American people.