Final answer:
New Federalism was characterized by the shift of powers from the federal government to state governments, aiming for increased efficiency and reduced public spending, and was epitomized by policy changes during the Nixon and Reagan administrations.
Step-by-step explanation:
New Federalism and its Characteristics
New Federalism is generally characterized by the transfer of powers and authority from the federal government to state governments. This political philosophy was particularly prominent during the administrations of Presidents Richard Nixon and Ronald Reagan. Nixon initiated the push for New Federalism by turning over certain government functions related to social programs to the states, backed by federal grants. President Reagan further continued this trend through the "devolution revolution", aiming to restore states' prominence in policy areas and enhance administrative efficiency, reduce public spending, and improve policy outcomes.
Under New Federalism, general revenue sharing programs were created, distributing funds to state and local governments with minimal restrictions, thus providing them a level of autonomy in spending. This shift came after an era of cooperative federalism where federal and state governments worked closely to address national issues, which considerably increased the federal government's role in concurrent policy areas. New Federalism represented a shift back towards more state-centric governance, delineating a clear contrast from the earlier, more nationally centralized approaches to government.