Towards a New Federalism

Towards New Federalism?

Photo: Andrew Cuomo speaks during a daily briefing New York, Mike Segar, Reuters, 2020. written by Vlad Adamescu

The dual nature of the United States government enues made up only 40% of all government revenue. has always been its greatest strength, as well as Only a decade later, that percentage had risen to 70%. one of its greatest issues. Out of the fear of tyranny, the This trend started to change when conservatives in the necessity of common defence and the preservation Reagan administration began pressuring Congress to of liberty, the Founding Fathers envisioned a divided cut federal taxes until the central government would government: state and federal, both emanating from simply be forced to scrap social programmes such as the people, were to be entrusted with different pre- Medicare, in a strategy known as ‘starving the beast’. By rogatives and purposes. In theory, this unique political the 1990s, this deep-rooted hostility towards federal system has remained almost unchanged for more than institutions had made its way into the mainstream of 230 years. In practice, as with all human institutions, it political discourse and had become ‘the new centre’, has adapted to circumstances and bowed to political with President Clinton even stating that ‘the era of big pressure. The Covid-19 pandemic will not fundamen- government’ was over. The assault on the federal govtally alter US federalism on its own, but it will likely ernment was well underway. greatly accelerate an existing trend, an offshoot of increasing polarisation: the hollowing out of the central This fed a cycle which turned hearts and minds, as government and a resurgence of individual states. well as policy, against the federal government: the less money the Federal Reserve receives, the less it can do, In early August, coronavirus was spreading faster in the and the more people start questioning the validity of US than any other nation, with circa 60,000 new cas- national taxes. As federal power decreases, states seem es and 1,000 deaths every day. The Centre for Disease to be reclaiming power. The political result of conserControl and Prevention’s (CDC) response to the crisis vative suspicion of federal power appeared in the 2010 has been widely criticised as inadequate. But as the midterms, with the massive gains made by the Tea Parformer head of the CDC Dr Tom Frieden put it, ‘blam- ty – a movement within the Republican Party born out ing the CDC for the failed US response is like blaming of opposition to early Obama-era economic recovery someone who was bound and encased in concrete for plans. The Tea Party’s goal is simple: shrink the size of failing to swim’. The reason for these failures can be the government, block any new spending and dismanbetter found in the system itself: a federal arrangement tle existing social programmes like Obamacare. that has been under assault for more than 30 years. While against the spending cuts Tea Party members For most of the United States’ history, state’s rights call for, Democrats have similarly been pushing in an were the law of the land. Individual states decided anti-federal direction. Vehement opposition to the questions of race, reproduction, religion, and the like. Trump administration has meant that liberal state coThe federal government acted merely as a guardian of alitions have become more frequent in recent years; in the collective interests of the states and controlled for- response to administration attempts to limit state aueign affairs. However, the great demands of the WWII thority over CO₂ vehicle emission standards, 23 states war effort and FDR’s New Deal social programmes led led by California have sued the federal government. Of to an unprecedented increase in federal tax revenue. these, 15 are Democratic ‘one-party states’, by which According to historian Gary Gerstle, in 1938 federal rev- the governorship and both state houses are controlled

by a single party. The number of multi-state lawsuits broader attitude among Democratic governors, who against the federal government is increasing. During have taken matters into their own hands. To battle the Trump’s first three years in office, there were 103 such pandemic and share resources, the three aforemenlawsuits, 96 of which were filed by Democratic state at- tioned states alongside Pennsylvania, Delaware, Rhode torney generals. Compare this to the 76 lawsuits filed Island and Republican-controlled Massachusetts have in the 8 years of the Bush Jr. presidency and the 78 already formed an eastern coalition, with California, Orfiled during Obama’s entire time in office. This shows egon and Washington in the west joining forces. a growing appetite for more autonomy in Democrat and members of his own party. In March, because of the way. The aggressive rhetoric of Mr Cuomo reflects a states and an increasing unwillingness to give up ac- This novel reaction from Democratic states, whose quired privileges which were previously seen mostly in voters traditionally favoured the central government, Republican-controlled states indicates how much Republicans have successfully delegitimised and undermined federal institutions in Coronavirus has largely confirmed and accelerated the last four decades. Distrust of the federal governthis trend. Early on in the pandemic, states did request ment is now, once again, the status quo. A Biden victhe help of the federal government, and the Trump tory in November might slow down the trend, with Administration did send much-needed personal pro- Democrats more at peace with allowing a friendly adtective equipment. This was seemingly carried out ministration to manage their affairs. Moreover, Biden based on political affinities; states important to Trump’s has pledged he will provide increased revenue to the re-election, such as Florida, got more federal budget, by repealing than they needed, while Democratic stronghold California had to send the “Distrust of the fedTrump’s 2017 tax cuts. This move might bring new life to govern200 ventilators it received for repairs. eral government is ment resource-starved agencies The Administration issued no federal guidance for when businesses and now, once again, like the Departments of Energy or Agriculture. However, Biden’s schools should be closed or reopened, the status quo.” campaign plan for dealing with when events ought to be cancelled or coronavirus emphasises working not, or when masks should be worn or with state governments and givnot. ing them significant autonomy over funds, as well as This made it clear the federal government was failing, ‘State and Local Emergency Fund’ specifically provides but when the President wanted to override state au- for mayors and governors using federal money to supthority, he was strongly opposed by both Democrats plement their business loans or jobs programs. high number of cases registered in these states, Trump One should also consider the bigger picture: powerful announced he was considering imposing a two-week individual states and limited federal government, low quarantine on New York, New Jersey and Connecticut. taxes, and a barely-existing welfare state have been the New York Governor Andrew Cuomo immediately stated norm, not the outlier throughout two and a half centuthat this action would amount to a ‘declaration of war ries of American history. FDR’s “New Deal” and Lyndon on states, a federal declaration of war’ (CNBC), which he Johnson’s “Great Society” were unusual policies enactwould contest in the courts. This, despite the Nation- ed in unusual times. In this sense, the Republicans have al Public Health Service Act of 1944 technically giving been attempting, and have been largely successful, the federal government direct authority to ‘prevent the to return to the status quo ante. Even assuming that spread of communicable diseases (…) from one State a four or even eight-year Biden administration would or possession into any other State or possession’. Trump try to increase the powers of the federal government eventually backed down from his earlier position, after (an unlikely move from what we have seen so far), it negative reactions from both Republicans and Demo- seems far-fetched that this would be enough to fundacrats. When considering the larger picture, it is extraor- mentally alter a long-time tendency within American dinary to see Democrats join their conservative coun- society. In other words, the future seems to belong to terparts in rejecting federal authority in such a forceful the individual states. the federal government taking action. His proposed