The State of American Federalism 2010--2011: The Economy, Healthcare Reform and Midterm Elections Shape the Intergovernmental Agenda

The slow and jobless economic recovery, the midterm elections and the passage of healthcare reform legislation dominated the political landscape in 2010. The growing momentum behind federal deficit reduction and budget cuts provided a stark juxtaposition to the previously active federal role in stimulating the economy. Consequently, state and local budgets face significant belt-tightening. The cross-cutting impacts of these and other significant federal and state policy changes are expected to affect future cost sharing in government programs, place a higher burden on state and local governments over the long term and influence the balance of intergovernmental relations. Many of the important developments in politics, policy, and law during 2010--2011 are more notable for their potential future impact as opposed to immediate impact on American federalism. Copyright 2011, Oxford University Press.