Federalism: This is a system where power is divided between national and state governments. It allows for flexibility because each level of government can make decisions that best suit their specific circumstances.
Devolution: This is the transfer of powers from the federal government to state governments. It increases flexibility by allowing states more control over their own policies.
Discretionary Spending: This refers to portions of the budget that the Congress can adjust annually. It provides flexibility in how funds are allocated each year.