Definition and meaning of New Federalism: New Federalism refers to the devolution of power from the federal government to state and local governments. It seeks to increase the autonomy of state and local governments in order to give them more control over the implementation of policy and the organization of their respective societies. New Federalism seeks to balance the power between state and local governments on the one hand and the federal government on the other. It involves the decentralization of government programs and the transfer of authority and resources from the federal government to state and local governments. An example of this would be the transfer of responsibilities for certain health care programs, such as Medicaid and Medicare, from the federal government to state governments. New Federalism also seeks to empower state and local governments to develop and implement their own policies, rather than relying on the federal government to dictate policy.