Spending Power

Question 1

5 req for spending power (Dole Factors)

Answer 1

1. In pursuit of general welfare
2. Unambiguous
3. Germane requirement (federal interest, not overstepping bounds)
4. No independent constitutional ban
5. Conditions can’t be coercive or compulsion

Question 2

U.S. v. Butler (1936) J. Roberts

Answer 2

tax & spend case

Take away: Congress has expansive power to tax, limited only by requirement that tax is for general welfare

Holding: Court endorses Hamilton’s position on taxing. Framers view: Hamilton thought Congress can tax & spend for any purpose that served the general welfare, so long as it doesn’t violate another constitutional provision.

Question 3

Steward Machine Co. v. Davis (1937) J. Cardozo

Answer 3

broad view of spending power

Holding: Court upheld federal unemployment compensation system created by Social Security Act
Scheme didn’t involve coercion w/in 10th amendment
States wanted federal help here & this act helps tax payers

Question 4

South Dakota v. Dole (1987) J. Rehnquist

Answer 4

conditions of spending power
Holding: This is w/in constitutional bounds even if Congress is indirectly regulating
Law cut off federal highway funding if states didn’t raise minimum drinking age. S.D. alleges this violates 21st amendment & indirectly regulates state’s power.

Only conditions that need to be met for spending power: (1) in pursuit of general welfare; (2) unambiguous; (3) germane requirement (federal interest, not overstepping bounds); (4) no independent constitutional ban; (5) conditions can’t be coercive or compulsion
Here, fulfills all of the conditions (although Court glosses over germane)
Federal gov’t interested in safe interstate travel