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The national government influences state and local governments primarily through financial incentives and regulatory measures. First, it provides funding through grants and aid, which often come with specific conditions that states must meet to receive the money. Second, it establishes federal regulations and mandates that states must comply with, thereby ensuring that certain national standards are upheld across all levels of government. These methods allow the national government to shape policies and practices at the state and local levels.

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Which level of government may tax the company?

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The United States calls its form of government where its power is divided between the national and state governments a Federal System. It created that type of government. In that case, the national government has responsibility for certain aspects and the state governments have responsibility for certain aspects. In France and England almost all power resides at the national level while administration occurs at the local level.


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