The Supreme Court's decision in National Federation of Independent Business v. Sebelius is important for American federalism because it A. bans state governments from spending any of their own revenue on a policy that is financed by the federal government. B. prohibits the federal government from providing any funding to state governments for the purpose of health care. C. limits the federal government's ability to impose conditions on states receiving federal funding. D. allows the federal government to impose any conditions it wants on states in exchange for federal funding.
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Step 1
: Identify the correct answer based on the Supreme Court's decision in National Federation of Independent Business v.

Sebelius. The correct answer is C: limits the federal government's ability to impose conditions on states receiving federal funding. In this case, the Supreme Court ruled that the Affordable Care Act's Medicaid expansion provision was overly coercive, as it would have withheld all Medicaid funding from states that did not comply with the expansion. This decision reaffirmed that the federal government cannot impose excessive conditions on states in exchange for federal funding.

Step 2
: Explain the reasoning behind the correct answer.

In the National Federation of Independent Business v. Sebelius case, the Supreme Court considered whether the Affordable Care Act's Medicaid expansion provision was constitutional. Under this provision, states were required to expand Medicaid eligibility to cover more individuals or risk losing all of their existing Medicaid funding from the federal government. The Supreme Court held that this provision was overly coercive and violated the principles of American federalism. The Court reasoned that the federal government could not effectively "commandeer" state governments by forcing them to either accept the new conditions or lose all of their existing funding. The Court's decision in this case effectively limited the federal government's ability to impose conditions on states receiving federal funding. While the federal government can still impose conditions, it must ensure that those conditions are not so coercive as to effectively force states to accept them.

Final Answer

This answer reflects the Supreme Court's decision in National Federation of Independent Business v. Sebelius, which reaffirmed the principles of American federalism and limited the federal government's ability to coerce states into accepting new conditions in exchange for existing federal funding.

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