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Power Shifts In Intergovernmental Relations: A Result Of Fiscal Federalism Beginning of 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 .... Middle of Paper .... has caused the national government to dominate the states; recently, however, reforms have begun to return power to the states. Policies and precedents of the New Deal centralized power in the national government. To remedy the devastation of the Great Depression, it assumed a more direct and prevalent role in the lives of the people. Congress passed the 1935 Social Security Act, providing retired persons pensions and benefits for the unemployed and disabled. In addition to Social Security, the government also established the Federa .... 831 words | 4 pages Subscription Length Price Join 30 days membership (recurring) $19.95 90 days membership (recurring) $39.95 180 days membership (non-recurring) $69.95