469 U.S. 528 (1985)
Garcia v. San Antonio Metropolitan Transit Authority represents a pivotal moment in U.S.
Does the Commerce Clause grant Congress the authority to apply the Fair Labor Standards Act to state and local governments, thereby subjecting them to federal regulations on wages and hours?
The federal government, under the Commerce Clause, can regulate the activities of state and local governments just like it regulates private activities if those activities substantially affect interstate commerce.
The Supreme Court held that the application of the FLSA to state and local governments does not violate the Constitution, effectively overturning National League of Cities v. Usery.
Garcia v. San Antonio MTA is significant because it redefined the scope of federal regulatory power over states by eliminating the 'traditional governmental function' test. It accentuates the supremacy of federal law in areas where state actors engage in activities that affect interstate commerce. This decision is also pivotal in further cementing the principles of cooperative federalism, where states are seen as integrated players within the broader federal legislative scheme, particularly in economic matters.