The State of American Federalism, 2004: Is Federalism Still a Core Value?

Federalism as a political issue was conspicuously absent fromthe 2004 presidential contest. Unlike many previous campaigns,neither party's candidate made much mention of problems besettingstates and localities. The war against global terrorism andthe changing situation in Iraq shaped the election. Progresswas made on homeland security, but intergovernmental wranglingover federal grants continued unabated. Federal-state feudswere common in several policy areas, including education, environmentalprotection, and health care. State finances received a revenueboost as economic growth picked up, but rising costs for Medicaid,education, employee pensions, and prisons clouded states' financialforecasts. The U.S. Supreme Court decided several cases witha federalism dimension, and these decisions plus those of thepast several years suggest the Court has moved not so much togrant more power to the states but to prune back the power ofCongress. Much of what has happened during the first Bush administrationmust be seen against the larger background of changes in theAmerican political party system. Changes in party organizationand policy control, especially during the first Bush administration,reaffirm David Walker's assessment that over the past quartercentury American federalism has become more nationalized.