Lasting from 1787 until 1824, the Federalist Party in the United States is most commonly known as the party of rich land owners and bankers who wanted a strong central government. Federalists believed that a strong government could better fulfill the needs of the American people than the people themselves. They also felt it was the job of the governing body to protect the emerging American industry, as well as to encourage its growth. The Federalist Party is typically considered the party of New England, but had a large following in the middle states as well.

Alexander Hamilton, James Madison, and John Jay are three of the most well-known members of the Federalist Party. Together, these men penned the Federalist Papers, a large volume of 85 political essays published between 1787 and 1788 under the pseudonym Publius. These papers showcased the Federalist ideals of preserving the sovereignty of the state as well as protecting individual freedom from the government.

John Adams was the only elected president to have direct ties with the Federalist Party. During his time as president, from 1797 to 1801, he was able to expand the role of government so that it operated more efficiently. During Adams' presidency, the Federalist-led congress passed the Alien and Sedition Acts.

The Alien Act prohibited immigrants from voting until they had lived in the United States for 14 years. Previously, an immigrant had been allowed to vote after being in residence for only five years. The Alien Enemies Act gave the president the authority to imprison or deport people suspected of threatening the government. The Sedition Act declared printing false or malicious criticism of the federal government to be a crime.

Conflicts within the Federalist Party, especially between John Adams and Alexander Hamilton, caused splits within the party by 1799. The election of 1800, which lead to a number of changes to the way in which presidential elections were to be held in the future, saw the victory of Thomas Jefferson, a Democratic-Republican. Hamilton was killed in 1804, which further weakened the Federalist Party.

The Federalists not only wanted to keep a strong central government, but also believed in developing and maintaining strong trade relationships with foreign countries, particularly England. These trade alliances introduced conflict between the Federalist and Non-Federalist states when the Embargo Act of 1807 was introduced. This act, signed by Jefferson during his second term, was designed to stop all trade, specifically with England and France, who were at war. The act was largely unsuccessful and unpopular, and all embargoes were lifted by 1809.

Despite the slight resurgence of the Federalist Party in reaction to the Embargo Act, James Madison, another Democratic-Republican, won the election of 1808. Tensions rose between the US and England, culminating in the War of 1812, which the Federalists were strongly opposed to. Madison won reelection in 1812, however, carrying the southern and western states. During the war, New England business men, represented by Essex Junto, met at the Hartford Convention to discuss secession from the Union and the necessity of states protecting their trade agreements with foreign countries. By the time they made their demands, however, the war was over.

The War of 1812 is generally considered the final blow to the Federalist Party. At the 1816 presidential election, Rufus King ran as a Federalist candidate but did not receive enough support to make an impact on the presidential election. At the presidential election of 1820, there was no candidate offered from the Federalist Party, and by 1824 the Federalist era was finished.