text: what is the difference between federal, state and local goverments? distinctions federal - the government of the united states, established by the u.s. constitution, is a federal republic of individual states. the laws of the united states are contained in acts of congress; administrative regulations, and judicial cases interpreting the statutes and regulations. the federal government has three branches: the executive, legislative, and judicial. through a system of "checks and balances", each of these branches has some authority to act on its own, some authority to regulate the other two branches, and has some of its authority, in turn, regulated by one or two other branches.  state - in general, matters that lie entirely within state borders are the exclusive concern of state governments. these include internal communications; regulations relating to property, industry, business, and public utilities; the state criminal code; and working conditions within the state. within this context, the federal government requires that state governments must be republican in form and that they adopt no laws that contradict or violate the federal constitution or the laws and treaties of the united states.  local - local governments are administrative offices of an area smaller than a state. the term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or (where appropriate) federal government.