The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. – Tenth Amendment, United States Constitution

IMPORTANCE OF FEDERALISM

The United States is a federal system.  Both state and federal governments draw their power from the people in the form of constitutions which define the powers and responsibilities that the people have delegated to their governments. Article Ten of the United States Constitution provides that: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." 

Traditionally these provisions have barred the states from functions such as foreign affairs, the national defense, the regulation of interstate commerce and the printing of currency.  Similarly, they have limited the federal government from direct action in many domestic areas and from compelling the states to act as agents of the federal government.  Over time, these lines have become increasingly blurred as a result of the growth in federal grant programs and by more liberal interpretations of the commerce clause that allows the federal government to preempt regulatory areas formerly left to the states and the states' ability to tax.  The move toward preemption in the name of uniformity has been hastened by requirements attached to international trade agreements that are the prerogative of the federal government.

A continuing demand for expanding government services, combined with the more robust taxing power of the federal government and the ability of the federal government to incur a deficit have led to a proliferation of federal grant programs that require states and localities to adopt federal requirements in order to qualify for federal assistance. As a result, unless they are willing to forgo federal reimbursement, state and local flexibility in the design and implementation of program is often limited. These conditions of reimbursement drive the design of multi-billion dollar programs such as Medicaid, welfare and Food Stamps.  They also compel states to meet federal guidelines in areas as far reaching as performance standards for elementary and secondary schools, seat belt laws and legal drinking ages.

Governors have a critical interest in the ongoing development and operation of the federal system.  Federal decisions can have a profound impact on state budgets and can, at times, conflict with state priorities or approaches.  Direct federal-local grant programs can make it more difficult to improve local government efficiency or to encourage coordination and integration across program lines. Categorical federal programs can make it difficult for a state to standardize local approaches in areas such as information technology and communications. 

Governors, unlike the President, spend considerable time and effort in making programs work together across organizational lines and funding silos. This is increasingly important in areas where successful programs require the cooperation of many entities and organizations. These areas include homeland security, economic development, health care cost containment, and education reform.

Because of the importance of federalism, most governors play both a personal and an institutional role. On a personal level, the governor will often serve as an advocate for state interests.  He or she will often play an active role in working with the Congress and with cabinet members and other executive branch officials to make sure that state concerns are understood and addressed.  Many governors also actively participate in collective activities like those of the National Governors Association. The governor's role as a state political leader can also prove helpful in accessing and influencing federal decision makers.

On an organization level, many governors have designated senior level members of their personal staffs as intergovernmental liaisons.  Often these staff members work closely with state departments and agencies and with local governments to develop and advocate state positions. In addition, 38 states maintain some form of representation in Washington, DC. In 35 states the Washington Office is part of the governor's office.