Why Federalism Matters
Published July 1, 2025
America’s founders rejected both monarchy and loose confederation of states to forge a novel system — one that distributes power across state and federal levels. This design wasn’t a compromise; it was a constitutional innovation that prevents tyranny, fosters local experimentation, and strengthens citizen engagement. In an era of political polarization and sweeping federal mandates, federalism remains a vital mechanism for preserving liberty and accommodating the pluralism of American life. Its layered sovereignty protects freedom not by homogenizing governance, but by enabling choice, responsiveness, and bottom-up influence across a continent-sized American democracy.
Check out more from Michael McConnell:
- Watch "Government Overreach Exposed: From Student Loans to Obamacare", an interview with Michael McConnell here.
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Learn more about Michael McConnell here.
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The opinions expressed are those of the authors and do not necessarily reflect the opinions of the Hoover Institution or Stanford University.
© 2025 by the Board of Trustees of Leland Stanford Junior University.
>> When America's founders gathered in Philadelphia in 1787, they faced a critical choice that would shape the nation's follow the European model of a single national government like that of England or France, or continue the loose confederation of states adopted under the Articles of Confederation. Realizing the limitations of both options, founders like James Madison proposed an entirely unique hybrid system, partly national, partly local.
America's Federalism, as it's known today. The proposed federalist system gave powers to the national government like those of foreign affairs and interstate commerce, but left most matters like education, law enforcement, and local commerce to the states. But what was the purpose of this new system? With the recurring calls to abolish the Electoral College and recently even the popular vote, it's imperative to understand why the United States adopted such a hybridized system of local, state, and national government.
Dividing power between state and national governments better secures the public good by allowing states to serve as the laboratories of democracy and respond more quickly to diverse and changing interests. If one state government becomes too oppressive or heavily taxes companies and citizens, residents and companies can relocate to other states with different laws and policies.
The Founders also believed a lone national government would lead to authoritarian rule. So they designed federalism to preserve the spirit and form of government by the people for the people. The federal system with state and federal representatives creates greater opportunities for citizens to flex their political muscle. With more bottom-up influence, civic spiritedness and civic participation is more possible and more likely.
Finally, it creates multiple layers of protection for liberty. Dual sovereignty between the states and D.C. provides checks and balances on power and federal overreach. For example, despite federal prohibition, various states have legalized recreational marijuana use with little intervention from the federal government. Today, as America faces no shortage of challenges, federalism continues to allow unity without uniformity, experimentation without existential risk, and liberty without losing local control.
In an age of increasing polarization, federalism is more vital than ever, enabling diverse communities to live according to their values while experiencing the security, security and stability of one unified nation.