See how local, state, and federal governments divide the cost of public services

Federal, state, and local governments share responsibility for funding public services. Education, roads, and social programs are funded through a complicated mix of taxes and intergovernmental transfers.

American local government comes in five distinct forms

Counties, municipalities, townships, special districts, and school districts are each created for a different purpose, operating under different rules, and answerable to the state in different ways. Special districts, the least known of the group, are created for specific purposes, such as transit or fire protection.

Consolidated city-county governments merge two layers of local government into one

A city-county consolidation removes a layer of local government by merging a municipality with its surrounding county. Examples include Jacksonville-Duval County, Louisville-Jefferson County, and San Francisco, all of which operate as both cities and counties.

The powers of local government are rooted in state law, not the Constitution

Unlike the federal government or the states, local governments have no constitutional standing—they exist only because state law allows them to. A state legislature can redraw a city's boundaries, strip its powers, or dissolve it entirely.

Two doctrines of local governance determine how much power cities actually have

Under what is known as "Dillon's Rule," local governments can only exercise powers explicitly granted by the state. Under "home rule," cities have broader self-governing authority—but the balance between the two depends entirely on state law.

Special districts are a form of local government focused on a single purpose

Unlike cities or counties, which provide a wide range of services, special districts are created to perform a single function, such as water, transit, or mosquito control. They are governed by appointed boards, have independent taxing authority, and now number nearly 40,000 across the US.

Local governments are responsible for more than 148,000 public water systems across the US

From large municipal utilities to small rural systems, local governments are tasked with providing clean water to almost every American community. The US operates over 148,000 public water systems.

Some California cities outsource their public services entirely to the county

Southern California's "contract cities" incorporate as municipalities but pay Los Angeles County for police, fire, and other services rather than running their own departments—a cost-saving model common across the region.

Listen to a weekly podcast about the people behind local government

The "GovLove" podcast features interviews with mayors, city managers, planners, and public servants at every level. It covers policies, challenges, and the daily realities of running local government across the US.

Illinois has more local governments than any other state

As of 2022, there were a reported total of 90,837 local government units across the US. Illinois had the highest number with 6,930, followed by Texas with 5,533. Explore all the data from the 2022 Census of Governments, which takes place every five years.

Smart cities support interdepartmental goals by facilitating shared infrastructure

Instead of working in isolation, municipal departments can share data, such as lighting and telecom needs, seamlessly and collaborate to solve larger-scale problems together. Integrating public feedback systems can further improve city services and sustainability.

One in seven US tax dollars is collected by local governments

Local governments collect about $886B each year to support education, infrastructure, and public health. Roughly three-quarters of this funding comes from property taxes, with the rest sourced from sales, excise, and income taxes.

Local governments borrow money for long-term projects by issuing municipal bonds

When a city needs to build a school, a road, or a water treatment plant, it usually issues a municipal bond—borrowing money from investors to be paid back over time. The market for these bonds now exceeds $4T.

Police spending is one of the largest budget items for local governments

Local governments finance most of the costs for police in the US. Total state and local criminal justice spending—covering police, courts, and corrections—reaches hundreds of billions of dollars annually.

State and local governments fund very different services

Local governments allocate 39% of their spending to K-12 education, while states allocate less than 1% directly—although much of local education funding actually comes from state and federal grants to local communities. States instead allocate their budgets to public welfare and health programs (45%) and higher education (15%).

New York City's five boroughs each function as a separate county under state law

Each of New York City's five boroughs—Manhattan, Brooklyn, Queens, the Bronx, and Staten Island—corresponds to a separate county under New York State law, forming a layered government structure that is unique among major American cities.

Many local governments also struggle to rein in their spending.

In 2020, government entities spent $316.5B on infrastructure, with state and local governments accounting for 34.8% of that amount.

Transit is funded through a three-tier system, and the federal government is the smallest piece

In 2019, the federal government covered about one-sixth of the $79B spent on public transit. States and localities make up the rest. About 85% of all transit trips are taken by bus or heavy rail, and nearly 4 in 10 US transit trips occur in the New York City metro area.

Deputy sheriffs and city police have different legal authority and chains of command

Sheriffs are elected officials at the county level, and their deputies usually patrol unincorporated areas and manage county jails. City police are hired by local government authorities and operate within city limits under a different chain of command.

Zoning laws determine what can be built—and where—in every American community

Local governments use zoning to regulate land use. About 75% of residentially zoned land in American cities is designated for single-family homes only—a restriction that some experts blame for increasing housing costs and reducing affordability.

Sanctuary cities limit local cooperation with federal immigration enforcement

Sanctuary cities limit how local agencies help ICE—such as restricting detainers, jail transfers, or data sharing—while still enforcing criminal law, leaving immigration enforcement mostly to federal authorities.

The federal government sent roughly $1.1T to state and local governments in 2024

Federal grants support a large portion of state and local budgets, funding Medicaid, infrastructure, education, and housing. In FY 2024, these transfers made up about 16% of total federal spending.

Fire districts and fire departments are governed differently

A fire department is usually a municipal agency under the control of city or county authorities. In contrast, a fire district functions as an independent special district with its own elected board, separate budget, and taxing authority.

A coalition government forms when two or more political parties cooperate to govern in a multiparty system.

States are increasingly using preemption laws to override local decisions

Preemption laws enable state legislatures to prevent cities and counties from enacting their own rules on issues like minimum wage, gun control, and housing. Their use has increased significantly in recent years.

Many issues facing urban environments cannot be solved by smart technologies

Although connecting systems to the Internet of Things can provide improved efficiency in municipal systems, problems such as limited affordable housing are driven by larger socioeconomic factors. Some experts suggest that local governments should focus resources on practical solutions to these issues rather than investing in smart technologies.

View a map of the balancing authorities managing electric systems and costs throughout the continental US

These are made up of utilities, Power Marketing Administrations—hydropower marketers from the Department of Energy—and groups of utilities that have formed regional entities called Regional Transmission Organizations or Independent System Operators. Collectively, balancing authorities ensure supply meets demand and can direct utilities to implement rolling blackouts to prevent permanent damage to electrical equipment.

Portland, Oregon, ran under a commission government for more than 100 years

From 1913 to 2024, Portland operated under a commission form of government, in which five elected commissioners each directly managed their own city bureaus—a structure that was largely abandoned elsewhere in the US by the mid-20th century.

Common Core was a nationwide effort to align learning standards across states

Launched in 2009 by state governors and education commissioners, Common Core created shared K–12 standards in math and English to ensure consistent academic expectations. Though nationally coordinated, adoption was voluntary and federally unmandated.

The US has 575 federally recognized tribal nations, each a sovereign government

Tribal governments are sovereign, with authority to pass laws, run courts, and levy taxes on their lands. Unlike cities or counties, they are not created by states. Their sovereignty predates the United States itself and is recognized in the Constitution, treaties, and federal law.

Explore the countries with a federal system—and see how they work

This resource from the Forum of Federations catalogs the world's federal countries. It provides background information on each, including the emergence of federalism, the division of power, and the practical interaction between national and regional governments.

Federal systems are a minority among the United Nations' 193 members

Of the United Nations' 193 member countries, roughly two dozen use a federal system, dividing power constitutionally between national and subnational governments. This group includes the United States, India, Canada, Germany, and more. The video walks through examples of how these states operate.

The US Board on Geographic Names is responsible for ensuring uniform usage of geographic names within the government.

Colonial self-rule fostered strong autonomy and distrust of centralized power

American colonies were governed through a patchwork of different systems, ranging from Crown-run to locally controlled. Broad local autonomy—often followed by sudden imperial crackdowns—taught colonial leaders to prize home rule and distrust distant centralized power, attitudes that later informed US federalism.

When state and local laws conflict, state law almost always prevails

Courts generally side with state law when it conflicts with a local ordinance. Whether the contradiction is explicitly stated or merely implied by the two laws, state authority typically prevails.

Walt Disney World essentially ran its own local government for more than 50 years

Disney's Reedy Creek Improvement District granted the company county-level authority to construct roads, issue bonds, and self-regulate for decades. Florida Governor Ron DeSantis dissolved the arrangement in 2023 after a public dispute with the company.

Opposing policies over immigration and sanctuary cities define the contemporary debate over federalism

Disputes between the federal government, Republican-controlled states, and Democratic-controlled cities over immigration enforcement and sanctuary policies have become a central flash point in modern federalism. These conflicts will shape the future of state autonomy, federal authority, and the enforcement of national policy across jurisdictions.

Native Americans built democratic systems of governance

Indigenous nations, such as the Muscogee, a confederacy of towns in the present-day Southeast, practiced participatory governance centered on communal decision-making and the consent of the governed.