The compact theory of federalism became the foundation for states' rights arguments.

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The compact theory of federalism suggests that the federal government was created by a compact or agreement between the states, which can withdraw from the agreement if the federal government oversteps its boundaries. This theory became the basis for arguments in favor of states' rights, as it reinforced the idea that states were the ultimate source of power and authority in the American political system.

The Compact Theory of Federalism Became the Foundation for States