Terminology:
- Constitution: A constitution is the most fundamental law of a sovereign body. The term is capitalized only when referring to a specific constitution (e.g., U.S. Constitution, Texas Constitution, etc.). In many cases, "constitution" refers to a single written document that explicitly creates government institutions, defines the scope of government power, and guarantees certain civil liberties.
- Popular sovereignty: the principle that the authority of a state and its government are created and sustained by the consent of its people, who are the source of all political power. Popular sovereignty, being a principle, does not imply any particular political implementation.[a] Benjamin Franklin expressed the concept when he wrote that "In free governments, the rulers are the servants and the people their superiors and sovereigns".
- Separated powers: Separation of powers is a doctrine of constitutional law under which the three branches of government (executive, legislative, and judicial) are kept separate. This is also known as the system of checks and balances, because each branch is given certain powers so as to check and balance the other branches. Each branch has separate powers, and generally each branch is not allowed to exercise the powers of the other branches. The Legislative Branch exercises congressional power, the Executive Branch exercises executive power, and the Judicial Branch exercises judicial review.
- Checks and balances: principle of government under which separate branches are empowered to prevent actions by other branches and are induced to share power. Checks and balances are applied primarily in constitutional governments. They are of fundamental importance in tripartite governments, such as that of the United States, which separate powers among legislative, executive, and judicial branches.
- unitary system: a sovereign state governed as a single entity in which the central government is the supreme authority. The central government may create (or abolish) administrative divisions (sub-national units). Such units exercise only the powers that the central government chooses to delegate.
- confederal system: a political union of sovereign states united for purposes of common action.[1] Usually created by a treaty, confederations of states tend to be established for dealing with critical issues, such as defence, foreign relations, internal trade or currency, with the central government being required to provide support for all its members.
- federal system / federalism: a system of government in which the same territory is controlled by two levels of government. Generally, an overarching national government is responsible for broader governance of larger territorial areas, while the smaller subdivisions, states, and cities govern the issues of local concern. Both the national government and the smaller political subdivisions have the power to make laws and both have a certain level of autonomy from each other.
- Enumerated powers: Enumerated powers are the powers granted to the Federal government, and specifically Congress, which are mostly listed in Article I, Section 8 of the U.S. Constitution. Namely the power “to lay and collect taxes”, duties, impost and excises, to pay debts, to provide for the common defense and general welfare of the United States, to regulate commerce with foreign Nations, to constitute tribunals inferior to the Supreme Court, to raise and maintain armed forces, to declare war, to establish a Post Office, etc. In all, the Constitution delegates 27 powers specifically to the Federal government.
- Implied powers: In the United States, implied powers are powers that, although not directly stated in the Constitution, are implied to be available based on previously stated powers.
- Concurrent powers: Concurrent powers are powers of a federal state that are shared by both the federal government and each constituent political unit, such as a state or province. These powers may be exercised simultaneously within the same territory, in relation to the same body of citizens, and regarding the same subject-matter.[1] Concurrent powers are contrasted with reserved powers (not possessed by the federal government) and with exclusive federal powers (forbidden to be possessed by the states, or requiring federal permission)
- Supremacy clause: establishes that the federal constitution, and federal law generally, take precedence over state laws, and even state constitutions. It prohibits states from interfering with the federal government's exercise of its constitutional powers, and from assuming any functions that are exclusively entrusted to the federal government. It does not, however, allow the federal government to review or veto state laws before they take effect.
- Reserved powers: powers that are not specifically granted to the federal government by the Constitution. The Tenth Amendment gives these powers to the states.
- Privileges and immunities: prevents a state from treating citizens of other states in a discriminatory manner. Additionally, a right of interstate travel is associated with the clause.
- Full faith and credit: the requirement, derived from Article IV, Section I of the Constitution, that state courts respect the laws and judgments of courts from other states. This clause attempts to prevent conflict among states and ensure the dependability of judgments across the country. This does so by requiring courts to follow the judgments made on the same issue in another state.
- Dual federalism: a political arrangement in which power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government. Dual federalism is defined in contrast to cooperative federalism ("marble-cake federalism"), in which federal and state governments collaborate on policy.
- Cooperative federalism: a flexible relationship between the federal and state governments in which both work together on a variety of issues and programs.
- Devolution: the statutory delegation of powers from the central government of a sovereign state to govern at a subnational level, such as a regional or local level.[1] It is a form of administrative decentralization. Devolved territories have the power to make legislation relevant to the area, thus granting them a higher level of autonomy.
- Fiscal federalism: the system of transfer payments or grants by which a central government shares its revenues with lower levels of government. Federal governments use this power to enforce national rules and standards. There are two primary types of transfers, conditional and unconditional. A conditional transfer from a federal body to a province, or other territory, involves a certain set of conditions. If the lower level of government is to receive this type of transfer, it must agree to the spending instructions of the federal government. An example of this would be the Canada Health Transfer. An unconditional grant is usually a cash or tax point transfer, with no spending instructions. An example of this would be a federal equalization transfer.
- Categorical grant: grants issued by the United States Congress which may be spent only for narrowly defined purposes. They are the main source of federal aid to state and local governments and can be used only for specified categories of state and local spending, such as education or roads. These grants have been accompanying rules and guidelines that constrain the recipient government in the use of grant funds.[1] Categorical grants are intended to help states improve the overall well-being of their residents, but also empower the federal government to exert more power over the states within a specific policy area.
- Block grant: a grant-in-aid of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms of designing and implementing programs.[1]: 9 Block grants, categorical grants, and general revenue sharing are three types of federal government grants-in-aid programs.
- Unfunded mandate: a statute or regulation that requires any entity to perform certain actions, with no money provided for fulfilling the requirements. This can be imposed on state or local government, as well as private individuals or organizations. The key distinction is that the statute or regulation is not accompanied by funding to fulfill the requirement. An example in the United States, would be those federal mandates that induce "responsibility, action, procedure or anything else that is imposed by constitutional, administrative, executive, or judicial action" for state and local governments and/or the private sector.
As of 1992, 172 federal mandates obliged state or local governments to fund programs to some extent.
- Local governments: a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically localised and has limited powers. Local governments generally act only within powers specifically delegated to them by law and/or directives of a higher level of government. In federal states, local government generally comprises a third or fourth tier of government, whereas in unitary states, local government usually occupies the second or third tier of government.
- Dillon’s Rule: states that local government powers are quite limited and only extend to those powers which are: 1) granted in express words; 2) necessarily implied or necessarily incident to the powers expressly granted; and 3) absolutely essential to the declared objects and purposes of the corporation – not simply convenient, but indispensable. The rule also states that any reasonable doubt by the court as to whether a power has been granted will be ruled against the local government.
- Home rule cities: the state's constitution grants municipalities and/or counties the ability to pass laws to govern themselves as they see fit (so long as they obey the state and federal constitutions).