Dole v. South Dakota
Facts
South Dakota allowed persons 19 years or older to purchase beer containing up to 3.2% alcohol. Congress enacted 23 U.S.C. § 158, directing the Secretary of Transportation to withhold a percentage of federal highway funds from States in which the purchase or public possession of alcoholic beverages by persons under 21 was lawful. South Dakota challenged the statute as an unconstitutional use of the spending power and as violating the Twenty-first Amendment. Congress enacted the condition to encourage uniform drinking ages because differing state drinking ages created incentives for young people to cross borders, drink, and drive.
Issue
May Congress, under its spending power, condition a small percentage of federal highway funds on a State's adoption of a minimum drinking age of 21? Does the Twenty-first Amendment bar Congress from using conditional spending to encourage States to raise their drinking ages?
Rule
Congress may attach conditions to the receipt of federal funds if the exercise of the spending power is in pursuit of the general welfare, the condition is stated unambiguously, the condition is related to the federal interest in the particular national project or program, and the condition does not induce the States to engage in conduct that would itself be unconstitutional. In addition, a financial inducement may be invalid if it is so coercive that pressure turns into compulsion, but relatively mild encouragement does not amount to coercion.
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A State challenges the condition, arguing that vehicle inspection policy is traditionally local and therefore not within Congress's spending power. How should a court rule?