Federalism is a system of government in which power is divided between national and state governments, and it exists in roughly two dozen countries worldwide. It differs from unitary systems, in which provinces, states, or regions can have their powers changed, revoked, or overruled by a central authority.
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Of the United Nations' 193 member countries, roughly two dozen use a federal system, dividing power constitutionally between national and subnational governments. This group includes the United States, India, Canada, Germany, and more. The video walks through examples of how these states operate.
During ratification, Federalists argued that a strong national government was essential for national survival. Anti-Federalists warned that it could overwhelm states and threaten individual liberty—forcing compromises that shaped early American federalism and led to the adoption of the Bill of Rights.
In recent years, federalism has shifted from allowing policy diversity across states to open conflict, with states and the federal government increasingly trying to impose their preferences on one another over issues like abortion, voting, immigration, and public health.
This resource from the Forum of Federations catalogs the world's federal countries. It provides background information on each, including the emergence of federalism, the division of power, and the practical interaction between national and regional governments.
Federalism assigns authority so that neither the national government nor the states entirely dominate the other or the people they govern. By creating overlapping claims of power, the system makes negotiation, conflict, and compromise a permanent feature rather than a failure.
Modern federalism is primarily worked out through litigation. The Supreme Court decides disputes in written opinions that explain when federal law preempts state authority, how far Congress's powers extend, and when states may resist.
This Radiolab podcast unpacks Bond v. United States, where a local love-triangle assault became a federal case under an international treaty—forcing the Supreme Court to confront a founding question: How far can federal power reach into crimes traditionally handled by the states?
Ratified in 1781, the Articles of Confederation left the states sovereign and independent, denied the national government power to tax or regulate commerce, and forced Congress to act through the states—exposing the limits of confederation and paving the way for US federalism.
Alexander Hamilton and Thomas Jefferson clashed over how power should be divided in the new republic—Hamilton favoring a strong national government with broad implied powers, and Jefferson warning that such authority would erode state power and threaten republican liberty.
Federal grants support a large portion of state and local budgets, funding Medicaid, infrastructure, education, and housing. In FY 2024, these transfers made up about 16% of total federal spending.
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