What is the primary function of the states in a federal system?

In a federal system, states primarily function to manage local governance and affairs, which is crucial for addressing the unique needs and preferences of their populations. Unlike the federal government that sets policies on a national level, states handle a wide range of issues including education, transportation, public safety, and local infrastructure, tailoring their approach based on local conditions and demands.

This structure allows for a balance between national interests and regional autonomy, enabling states to innovate and implement policies that are more suitable for their constituents. For instance, states can establish their own laws concerning health care, education standards, and economic policies, reflecting the values and needs of their residents. This local governance aspect makes states essential components of a federal system, as they serve as the closest level of government to the people, ensuring that community-level issues are effectively addressed.