Under Bush, the size of the federal government was at an all time high. Despite the Republican party traditionally supporting a smaller government, low taxations and low spending, federal government spending rose by 33% from 2001 to 2005. Bush’s policies were controlled by external events such as 9/11 which led to the creation of Homeland Security and increased spending for defence of the United States. Additionally, the US were conducting wars in both Iraq and Afghanistan leading to a large increase in government spending on foreign affairs. Furthermore under the Bush Presidency, there were further expansion of the federal government and the imposition of federal demands on the states through measures such as No Child Left Behind and MedicareFederalism has eroded over time due to the increasing size of the federal government. Obama has expanded the size of the federal government through the introduction of his Affordable Care Act. However, whilst this looks like a large increase in the power of the federal government, Obama has allowed states to pursue their own policy goals. Colorado was for example, allowed to legalise cannabis for recreational use. This shows the evolving and flexible nature of federalism.However, after Johnson left office, parties have introduced new ways to re-empower the states and restore a balance closer to the original model of dual federalism, where power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government. This is known as New federalism. This was done by presidents like Nixon who introduced the idea of block grants. Nixon’s programme, called General Revenue Sharing, allowed the states to spend a greater proportion of their federal grants as they chose. Block grants are fixed-sum federal grants to state and local governments that give them broad flexibility to design and implement designated programs. This meant less control from the national government suggesting that the idea of federalism hasn’t perhaps eroded as many claim. This was most prominently seen under Reagan who believed that ‘big government is not the solution, it is the problem’.