The State of American Federalism 2008-2009: The Presidential Election, the Economic Downturn, and the Consequences for Federalism

Abstract

The most consequential developments for American federalism in 2008–2009 were the presidential election and economic recession. After several years when states were the primary innovators on many issues that topped the policy agenda, the economic downturn drew renewed attention to federal policy-making, given the greater resources and capacities of the federal government. Although federalism was not a dominant issue in the presidential campaign, Barack Obama's election and sizable Democratic congressional gains had important implications for federal-state relations by putting federal power in the service of a different set of policy goals, encouraging state experimentation on a different set of policy issues, and producing a greater willingness to respond to state pleas for financial assistance.