Local Government in the US

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.

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.

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.

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%).

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.

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.

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.

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.

'Our Towns' offers a portrait of civic life in smaller cities in America

Based on the book of the same name by journalists James and Deborah Fallows, the 2021 documentary follows the pair as they travel across small and mid-sized American cities to show how communities handle economic setbacks and reinvent themselves locally.