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American federalism is constantly in flux. The “devolution revolution” of the mid-1990s gave states tremendous power to rewrite the rules of their welfare programs, changed the fiscal incentives that states face, and initiated a massive health insurance expansion funded primarily by the federal government but implemented, with great latitude, by states. How did states react? How did this change the social safety net in the United States, and how did it reshape the nation’s distinct brand of federalism? This essay explores these questions, both through a close focus on how devolution played out in California and through a broader look at trends across the states.