Most of what government does in the United States involves more than one level. Federal law sets rules that states carry out, states run programs the federal government partly funds, and local governments deliver services under both. The main tools of the relationship are grants-in-aid, which now exceed $1 trillion a year, conditions attached to those grants, mandates that require state or local action, preemption that displaces state law, and joint programs such as Medicaid, unemployment insurance, highways, and disaster response, in which federal, state, and local officials share responsibility.
Formal channels for coordination have come and gone. The Advisory Commission on Intergovernmental Relations, created in 1959 to study and improve the system, was defunded in 1996. Executive Order 13132, issued in 1999, requires federal agencies to consult state and local officials and assess the federalism implications of major rules. State and local governments represent themselves in Washington through organizations sometimes called the Big Seven, including the National Governors Association, the National Conference of State Legislatures, the Council of State Governments, the National Association of Counties, the National League of Cities, the U.S. Conference of Mayors, and the International City/County Management Association.
Relations have grown more adversarial as politics has polarized. States led by the party out of power regularly sue the federal government, and since 2025 disputes have centered on grant freezes and terminations, conditions on funding for sanctuary jurisdictions, disaster aid, election administration, and National Guard deployments, while states controlled by the same party as the President have often cooperated closely, for instance on immigration enforcement. States also preempt their own cities on issues such as wages and policing. Supporters of a strong federal role cite national standards and equal rights, while advocates of devolution cite local knowledge and accountability.
| Status | Active |
| Legal basis | U.S. Constitution, Article I, Section 8, Article VI, Tenth Amendment, Executive Order 13132 (1999) |
| Official site | usa.gov |
| Main tools | Grants, conditions, mandates, preemption, joint programs |
| Federal grants | More than $1 trillion a year |
| Former advisory body | ACIR (1959 to 1996) |
| Consultation rule | Executive Order 13132 (1999) |
| State and local lobby | The Big Seven associations |
| Major joint programs | Medicaid, highways, unemployment insurance, disaster aid |
| Date | ACIR created 1959, intergovernmental relations since the founding |