The difference between the American federal system and a confederation is that, in a confederation, state governments

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In a confederation, the state governments retain their full sovereignty, meaning they have supreme authority within their own borders and are not subordinate to a central government. This is different from a federal system, like the United States, where the central government has certain enumerated powers and the states have their own spheres of authority but are ultimately subject to the authority of the national government.

The Difference Between the American Federal System and a Confederation