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Power Shifts In Intergovernmental Relations: A Result Of Fiscal Federalism
Fiscal federalism is the result of the states' dependence on the
national government for funds. Until 1913, the national government had minimal
monetary resources, thus possessing little control over the affairs of the
states. Once effected, the Sixteenth Amendment resulted in the amassing of
government funds on the national level. This reserve of money enabled the
national government to initiate a multitude of national programs--such as the
interstate highway--as well as provide grants to the states. It is primarily
through these grants that the national government can exert influence over state
affairs; for, by designati ....
Word count: 831 - Page count: 4
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