American local government comes in five distinct forms

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.

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.

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.

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.

Local governments coordinate across jurisdictions through regional councils and planning bodies

Many local governments are part of Councils of Governments or Metropolitan Planning Organizations—regional entities that coordinate transportation, land use, and other shared priorities across city and county boundaries. Federal law mandates their establishment in any metro area with a population over 50,000.

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.

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 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.

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.

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.

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.

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

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.

Hawaii is the only US state with no incorporated municipalities

Unlike every other state, Hawaii has no cities or towns. Its four county governments manage all local services—the functions that municipalities provide elsewhere in the US—across the entire state.

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.

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.

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.

Many local governments also struggle to rein in their spending.

Alaska has boroughs instead of counties, and nearly half the state has no borough-level government

Alaska's "Unorganized Borough" covers about 323,440 square miles—larger than the entire state of Texas—and lacks a borough-level government, so the state provides services that would typically be managed by counties or boroughs elsewhere.

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.

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.

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.

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.

Louisiana has parishes instead of counties

Louisiana is the only US state that uses parishes rather than counties as its primary local government unit. The distinction traces back to the state's French and Spanish Catholic colonial heritage.

Investors can buy three main types of bonds: government, corporate, and municipal

Each type has variations of its bond offerings with different interest rates, loan lengths, maturity dates, and terms. Each type also carries its own risks and rewards.

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.

The most common types of bankruptcy filings are Chapter 7, Chapter 11, and Chapter 13

However, there are actually six types in practice today. These less-common options can be lifelines for foreign businesses operating in the US, local governments, and farms and fisheries.

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.

US school distrists have greatly consolidated since 1940

Consolidation significantly decreased the number of independent school districts from approximately 117,000 in 1940 to just over 13,000 today, mainly driven by efforts to boost efficiency and balance funding across communities.

States are constitutionally mandated to draw their own congressional districts

Under Article I, Section 4 of the US Constitution, state legislatures possess the authority to determine how congressional districts are drawn. However, Congress retains the power to alter these rules if it chooses to.

Voter turnout in local elections is significantly lower than for national elections

While 64% of eligible voters cast ballots in the 2024 presidential election, turnout in municipal elections is usually below 15%. For school board elections—where members oversee more than 50 million students and $600B in spending—turnout is often around 5%-10%.

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.

Public libraries are funded by a mix of local taxes, state grants, and federal programs.

State governments have public pensions for their employees

In many US states, these pensions are set aside for teachers, firefighters, and/or other state government workers. However, many of these pensions are currently underfunded. This map provides a visual representation of how strong each US states’ public pensions are.

In the US, any court can rule on constitutionality—unlike in most other countries

In the American system, known as diffuse judicial review, federal and state courts at every level may assess whether laws comply with the Constitution, and their decisions are ultimately reviewable by the Supreme Court. Many other democracies, by contrast, reserve constitutional review to specialized constitutional courts.

Explore how 10,000 different American cities got their name.

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.

New England towns have practiced direct democracy since the 1700s

Town meetings in New England let residents vote directly on local budgets, laws, and policies. One of the oldest surviving forms of participatory democracy in the United States, the tradition dates back nearly 250 years.

Explore the most common jobs for Americans, broken down by age and gender.

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.

The United States is the world's oldest continuously operating federal system under a written constitution

The US pioneered federalism in the late 18th century, and many countries later adopted federal systems to manage conflict and share power. This resource features interactive maps that trace the spread of federal systems worldwide from 1900 to the present.

The US framework of government has influenced the constitutions of many other countries

In 1787, the US Constitution introduced a system built on the separation of powers and individual liberties, including freedom of speech and religion. Though widely influential, its rigidity has made it less of a modern model as countries adopt more adaptable constitutional frameworks.

Federal government supports—but doesn't run—K-12 schools

The Department of Education contributes about 8% of K-12 funding and administers targeted grants, civil‑rights enforcement, research, and data collection. Crucially, it is legally prohibited from directing curriculum, personnel decisions, or instructional content, leaving that control to states and districts.

Visually explore the federal government's evolving role in education.

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.

Companies often use different share classes, like Class A or Class B, to structure ownership

Share classes refer to specific types of company stock that are distinguished by the rights they grant, such as voting power and dividend access.

The earliest colonial schools were often religious

The earliest American schools were far from our notions of “public” or “private”—they were neighborhood institutions, often founded by religious groups, that sought to educate children academically and spiritually.

Federalism creates tension between national and state power by design

Federalism assigns authority so that neither the national government nor the states entirely dominate the other or the people they govern. By creating overlapping claims of power, the system makes negotiation, conflict, and compromise a permanent feature rather than a failure.

The First Amendment protects 5 distinct freedoms

Most Americans cite the amendment on free speech, but the First Amendment also protects religion, the press, peaceful assembly, and the right to petition the government—five separate guarantees in a single sentence.