Under the federalist system, the states retain significant powers; however, the Supremacy Clause of the Constitution provides that within the areas of regulation that are federal in nature, federal law is supreme.

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The Supremacy Clause, found in Article VI, Clause 2 of the U.S. Constitution, establishes that the Constitution, federal laws made pursuant to it, and treaties made under its authority, constitute the supreme law of the land. It ensures that federal law takes precedence over state laws in areas where the federal government has authority, thereby allowing the federal government to function effectively within its jurisdiction while states retain their powers in other areas.

Under the Federalist System, the States Retain Significant Powers; However