Federalism is a basic principle in the system of American government, yet the Founding Fathers offered no official definition of the term, nor do the words federation or federal appear in the Constitution. Actually, in The Federalist (No. 39), James Madison proposed that the Constitution is neither federal nor national in nature but a combination of the two. This session discusses the major theories of federalism such as dual federalism and cooperative federalism. A comparison of the American federal system to the British system is included. Constitutional concepts such as equal footing, federal analogy for legislative apportionment, nullification, interposition, full faith and credit, privileges and immunities of citizens, extradition, interstate compacts and disputes and enumerated and implied powers will be explored. We will discuss landmark decisions of the U.S. Supreme Court as well.