How are U.S. state governments related to cities and local governments?

In the United States, state governments hold primary authority over local governments, which are established and controlled by the states to assist in carrying out constitutional powers. Because local governments are created by the state, they exercise only those powers that the state grants to them.1

The relationship between these entities is often defined by two competing legal concepts:

• Dillon Rule: This principle posits that local governments possess only those powers that are expressly granted by the state, necessarily implied from such grants, or crucial to their existence.2
• Home Rule: This concept suggests that state constitutions or statutes should confer a measure of autonomy to local governments, protecting them from state interference in certain areas of responsibility.2

States determine the structure and authority of various local units, including counties, municipalities, and school districts. While states may redefine the role and authority of these units as they deem appropriate, they also frequently provide funding and support for local services. As urban challenges have become more complex, cities have increasingly sought assistance from both state and federal governments to address issues like education, housing, and transportation.21