Federalism
is the federal principle or system of government. Both categorical
grants and federal mandates have increased the power of the federal
government relative to the states. Categorical grants increase the
states' power because they are the main source of federal aid to state
and local governments. Federal mandates increase the states' power
because they require that states and local governments comply with
federal rules under threat of penalties or as a condition of receipt of a
federal grant.
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