Obama may have expanded federalism with the passage of the health care reform bill mandate for insurance. However, much of the bill also had elements of cooperative federalism.
Diminishing Federalism, Obama also included in the stimulus and other bills provisions to reduce NASA's role, allowing for state grants to compete with NASA, and for privatization to take over elements of NASA and receive government grants to build on good ideas.
Fiscal federalism is the name given to a system of financial transfers between the federal, state, and local governments to pursue policy initiatives. An example of this is money from the federal government to build highways or strengthen local law enforcement. This money comes with strings attached and allows policy to be directed in a relatively uniform way.
Often the policy ends are agreed upon "build the interstate highway system". But the strings attached would arise to, "rising your drinking age to 21 if you want federal funds". President Obama has to take care of most of the issues with money being distributed within branches of government or groups of people. Last May the Obama administration forced South Carolina not just to take its share of federal stimulus funds, but to spend the...