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. …showed first 75 words of 822 total…

…showed last 75 words of 822 total…intergovernmental relations are more inclined to favor the states, as a power shift to states is being promoted to reduce the size of the federal government. The roles of the national and state governments continually change in accordance with the state of the nation and the state of politics, and money is also an integral factor in the evolution of intergovernmental relations. Thus, fiscal federalism has a prevailing role in the shaping of the nation.