When James Madison, Alexander Hamilton, and John Jay drafted the Federalist Papers to persuade the state of New York to ratify the newly drafted United States Constitution, they could never have imagined the controversy that the political theory of federalism and the subsequent evolution of federalism that would follow would be generated. The framers of the Constitution never intended that the federal government be directly involved in the general welfare of the people living in the United States beyond ensuring national defense and the creation of a national economy (Wills, 1982). As controversial as the issue was in 1787 and 1788, the topic is still controversial today and has spawned political factions that have called for a return to those constitutional foundations founded on federalism. In his introduction to the Federalist Papers, Wills (1982) defined federalism as a fundamental political principle of the United States Constitution that recognized that post-Revolutionary colonies could best be governed by a mix of local and central government decision-making. Today, states are called upon to address social welfare issues such as abortion, gay marriage and public housing; however, federal agencies and federal dollars are caught in the political crosshairs for legislative resolution of these problems. This essay will examine this evolution of federalism and discuss its significance, in relation to the current state of intergovernmental relations for public bodies involved in the housing sector. Structure of Federalism The American concept of federalism implies balance. As a result, a system of checks and balances created by a division of powers between the executive, legislative, and judicial branches of the national governor...... middle of paper ......pers/Inman.pdfNathan, R.P. ( 2 September 2006). Update of the theories of American federalism. Paper presented at the Annual Meeting of the American Political Science Association. Retrieved June 20, 2011, from http://www.rockinst.org/pdf/federalism/2006-09-02-updating_theories_of_american_federalism.pdfNivola, P. S. (2007, July). Rediscover federalism. Issues in Governance Studies, 8, 1-18. Retrieved June 20, 2011, from http://www.brookings.edu/views/papers/nivola/20070709.pdfQuigley, J. M. (2002, April 3). A decent home: housing policy in perspective, (pp. 53-99). Berkeley, California. University of California, Berkley Program on Housing and Urban Policy. Retrieved June 20, 2011, from http://escholarship.org/uc/item/8f57x42qWills, G. (Ed.). (1982). Introduction. The Federalist Papers of Alexander Hamilton, James Madison, and John Jay. (pp. vii-xxiv). New York: Bantam.