Devolution
The United States has a long tradition of state autonomy from the central
government. The nation’s first constitution, the Articles of Confederation, gave
the federal government little authority, vesting most of it in the 13 states that
comprised the country during its first few years. In 1787, when the current
United States Constitution was ratified, states ceded some of their authority
reluctantly to the central government, only after it had demonstrated its
inability to curb destructive interstate economic competition, to implement
coherent foreign policy, and to deter sporadic insurrections. The states sought
assurances against further federal encroachment of their prerogatives in the
Constitution’s tenth amendment, which 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".
The trend of the last 70 years–a dramatic expansion of the size, scope,
and authority of the federal government–has been an historical aberration. As
recently as 1930, federal spending accounted for only 31 percent of total
governmental outlays by all levels of government. Today that percentage
stands at 61 percent.
During the past decade, a number of policymakers and scholars have
asserted that more fiscal responsibilities should be "devolved" or returned to
the states. The most famousor notoriousadvocate of such devolution was
Newt Gingrich, the former discredited Speaker of the United States House of
Representatives. When the Republicans gained control of the U.S. House of
Representatives in 1994, commentators predicted an imminent "devolution
revolution", which would bring about a major "rebalancing" of the nation’s
intergovernmental relations1
. Actually, the extent of devolution over the past
seven years has been modest. While the states have been given more discretion
in the implementation of some programs, Washington still "calls the shots" to a
significant degree.
The devolution revolution has fizzled because its most powerful
proponents have had higher priorities. For them, the devolutionary cause has
been an intermediate goal, to be bargained away, if necessary, to achieve other
ends.
https://www.bancaditalia.it/pubblicazioni/altri-atti-convegni/2001-fiscal-rules/737-768_tannenwald.pdf?language_id=1