Part one of term paper
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 re ...

Part two of term paper
... grants, the national government can compel states and localities to make or alter policies and legislation in accordance with its agenda. The manner in which the national government has wielded the influence of money throughout the history of the nation has continually altered intergovernmental relations. Since the Depression, fiscal federalism has caused the national government to dominate the states; recently, however, reforms have begun to return power to the states. Policies and precedent ...