<Li> Helvering v. Davis, and </Li> <Li> Steward Machine Company v. Davis . </Li> <P> The national government was forced to cooperate with all levels of government to implement the New Deal policies; local government earned an equal standing with the other layers, as the federal government relied on political machines at a city level to bypass state legislatures . The formerly distinct division of responsibilities between state and national government had been described as a "layer cake," but, with the lines of duty blurred, cooperative federalism was likened to a "marble cake" or a "picket fence ." In cooperative federalism, federal funds are distributed through grants in aid or categorical grants which gave the federal government more control over the use of the money . </P> <P> Another movement calling itself "New Federalism" appeared in the late 20th century and early 21st century . New Federalism, which is characterized by a gradual return of power to the states, was initiated by President Ronald Reagan (1981--89) with his "devolution revolution" in the early 1980s and lasted until 2001 . Previously, the federal government had granted money to the states categorically, limiting the states to use this funding for specific programs . Reagan's administration, however, introduced a practice of giving block grants, freeing state governments to spend the money at their own discretion . </P>

The system of federalism in the united states can best be described as