Which statement best explains how the balance of state and federal power shifted under president ronald reagan?   a)the federal government lost power over the states through the policy of "new federalism".  b)the federal government increased its power by gaining the ability to set health care regulations.  c)the federal government gained power over the states by ending education regulations.  d)the federal government decreased its power by ending funding for medicaid.

A) The federal government lost power over the states through the policy of new federalism.

The concept of New Federal was to transfer powers from the US federal government back to the state. The states were allowed to take a more active role in their own affairs.  New federalism involves the federal government providing a block grant to the State to resolve social issues but in return, the federal government would monitor outcome as well as provide broad discretion to the states for how the programs were implemented.