| Term | Definition |
| Block grants | a form of fiscal federalism where federal aid is given to the states with few strings attached. |
| Categorical grants | include project and formula grants and aim at assisting the states in areas such as health, income security, and education. |
| Commerce clause | Article I Section 8 Clause 3 of the Constitution giving Congress the authority to regulate interstate commerce and commerce with foreign countries. |
| Creative federalism | developed during President Lyndon Johnson's administration, it was characterized by the Great Society programs, which placed a major responsibility on federally funded programs. |
| Devolution | political theory of returning power to the states. |
| Dual federalism | the earliest type of relationship established between the federal government and the states where the federal government's powers were defined as delegated and the state government's powers were reserved. |
| Fiscal federalism | a concept of federalism where funding is appropriated by the federal government to the states with specific conditions attached. The legislation can be in the form of mandates. |
| Funded mandates | those regulations passed by Congress or issued by regulatory agencies to the states with federal funds to support them. |
| Layer cake federalism | federalism characterized by a national government exercising its power independently from state governments. |
| Marble cake federalism | also known as cooperative federalism, it developed during the New Deal and is characterized by the federal government's becoming more intrusive in what was traditionally states' powers. |
| McCulloch v. Maryland (1819) | case that established the principle that the federal government was supreme over the state. |
| New federalism | political theory first espoused by Richard Nixon and carried out by Ronald Reagan. It advocates the downsizing of the federal government and the devolution of power to the states. |
| Unfunded mandates | those regulations passed by Congress or issued by regulatory agencies to the states without federal funds to support them. |