Practice Question

The U.S. System of Federalism
1 Federalism is a system of government in which power is divided between a central authority and smaller political units, such as states or provinces. This basic principle is presented in the 10th Amendment to the U.S. Constitution.
2 Under U.S. federalism, the national government is given power over issues of countrywide concern. These powers include providing national defense and declaring war, entering into treaties with foreign governments, printing money, regulating interstate and international commerce, and making laws that enforce the U.S. Constitution.
3 Power over domestic issues usually falls under the powers of the states. These powers include establishing local governments and issuing licenses. States also have the power to regulate intrastate commerce, provide for public health and safety, and exercise other powers that are not given to the federal government nor prohibited to the state governments. Finally, states exercise political powers, which include conducting elections and ratifying amendments to the U.S. Constitution.
4 The national and state governments share the powers of establishing and collecting taxes, building and maintaining highways, borrowing and spending money, and setting up courts and banks. The governments at both levels can also make and enforce laws, so long as those laws uphold the U.S. Constitution.