Final answer:
The federal government maintains control over the states during devolution by using fiscal federalism. This includes giving block grants with the expectation of adherence to federal standards, although with some discretion allowed for states. The era of new federalism sought to increase state control, but federal influence remains embedded in the distribution of funds and mandates.
Step-by-step explanation:
The federal government continues to exert significant control over states during the period of devolution primarily through fiscal federalism. This strategy includes the use of block grants to states allowing for discretion in policy implementation, while still upholding federal objectives and standards. Furthermore, mandates can enforce compliance with federal regulations, and competitive federalism today involves shifting relationships that can grant more autonomy to states or expand federal authority on an issue-by-issue basis.
Historically, we can notice a shift from dual federalism, where state and federal governments operated within separate domains, to cooperative federalism, where federal involvement increased in state-handled areas. The era of new federalism saw attempts to restore state prominence, often through the provision of block grants with fewer restrictions, promoting a devolution revolution. States, therefore, became more active in various policy domains previously under the federal umbrella, such as welfare programs. Now, we see variations in the levels of state autonomy based on policy, public opinion, and constitutional interpretation by the U.S. Supreme Court.
The use of fiscal federalism involves the federal government wielding the 'power of the purse' to influence state legislation and policy—though block grants may reduce federal control, they still preserve a level of federal influence over state actions.