The Alien and Sedition Acts. With the rise of political parties in the new nation, partisan conflict intensified over issues of economics, foreign policy, law, and domestic policy. The passage of the Alien and Sedition Acts in 1798 amid fears of war with France exacerbated the growing rift between Federalists and Democratic-Republicans. At the center were fundamental differences over the Constitution: whether its authority was based on broad, implied powers or limited in scope under strict interpretation.