This book examines bargaining in the federal system from the perspective of a single state, New York. The central theme is mutual dependence under federalism, a dynamic relationship between states and the national government. Case studies are presented that focus on New York as influencer of, and reactor to, federal policies in the 1970's and 1980's. Cases of influence include New York's efforts to secure loan guarantees for New York City in 1975 and 1978, and to retain state and local tax deductions in the Tax Reform Act of 1986. Cases of reaction involve New York's responses to the Reagan budget cuts of 1981 and to the siting of a Superconducting Supercollider near Rochester. The first book on American federalism written from the perspective of a single state, Bargaining Under Federalism makes a unique contribution to our understanding of the workings of federalism.