the federal government has functions that have been greatly extended and touch on nearly all aspects of life for American citizens. Regardless of this expansion of federal power, the states continue to be very important political centres of government activity. Recent presidents such as Nixon and Reagan tried to cut back the power of the federal government and give back to the states power that was deemed to have been taken from them. The current president , George W Bush, has promised to continue with what might be deemed a Republican principle - making Federal government smaller. This "New Federalism" had limited success under Nixon and Reagan primarily due to the confusion as to who did what after reforms in welfare. However, it was a recognition by two presidents that the states could take greater responsibility in how they ran themselves and also that there should be a reduction in federal authority. The importance of the American states as legal entities is considerable. As stated this is enshrined in the Constitution. Today, most of the civil and criminal laws that govern Americans? lives are state laws. State law also covers family law, traffic law and commercial law. The most obvious example of a state?s right to implement laws for itself is the right a state has to either have or not to have the death penalty for convicted murderers. The states have important regulatory functions, laying down many of the rules that businesses and trade unions must observe. States have