Interpretation of the
Necessary and Proper Clause has been controversial, especially during the early years of the country. Strict constructionists interpret the clause to mean that Congress may make a law only if the inability to do so would cripple its ability to apply one of its enumerated powers.
Loose constructionists, on the other hand, believe it is largely up to Congress and not the courts to determine what means are "necessary and proper" in executing one of its enumerated powers. It is often known as the "elastic clause" because of the great amount of leeway in interpretation it allows; depending on the interpretation, it can be "stretched" to expand the powers of Congress, or allowed to "contract", limiting Congress. In practical usage, the clause has been paired with the
Commerce Clause in particular to provide the constitutional basis for a wide variety of federal laws.
McCulloch v. Maryland The defining example of the Necessary and Proper Clause in U.S. history was
McCulloch v. Maryland in 1819. The United States Constitution says nothing about establishing a national bank. The U.S. government established a national bank that provided part of the government's initial capital. In 1819 the federal government opened a national bank in
Baltimore, Maryland. In an effort to tax the bank out of business, the government of Maryland imposed a tax on the federal bank. James William McCulloch, a cashier at the bank, refused to pay the tax. Eventually the case was heard before the U.S. Supreme Court. Chief Justice
John Marshall held that the power of establishing a national bank could be implied from the U.S. Constitution. Marshall ruled that no state could use its taxing power to tax an arm of the national government. ==Case law==