The Bill of Federalism
Article [of Amendment 2] — [Unfunded Mandates and Conditions on Spending]Text of Proposed Amendment The legislative power shall not be construed to allow Congress to impose upon a State, or political subdivision thereof, an obligation or duty to make expenditures unless such expenditures shall be fully reimbursed by the United States; nor shall the legislative power be construed to allow Congress to place any condition on the expenditure or receipt of appropriated funds unless the requirement imposed by the condition would be within its power if enacted as a regulation.
Professor Barnett's commentary
The second proposed amendment addresses two sources of persistent federal overreaching. The first is federal laws mandating state action necessitating the expenditure of state funds without reimbursing the states for their expenditures. In this manner, the federal government can take credit for adopting measures without incurring the political cost of increasing taxes or borrowing. The second problem addresses is the use of federal spending to accomplish objects not delegated to the United States. For example, the 55 mph speed limit was imposed by the states by conditioning the receipt of federal highway funds upon compliance with this mandate. This amendment makes this type of condition on funding unconstitutional by requiring that any condition placed on the receipt of federal money be within the power of Congress to enact as a standalone regulation, such as the power of Congress to enforce civil rights that is delegated to it by Section 5 of the Fourteenth Amendment.
Public Comment Section on the Second Amendment of the Bill of Federalism