Federalism is mostly about sovereignty and cession of sovereignty for common goals. Local governments are not subjects of federalism because they lack sovereignty.
Why is the federal government so involved in our lives then? After watching this video and explaining federalism, the states should have the supreme power over making laws, thats what I got out of it. This empowers the citizens/voters when it comes to law. I think Congress and the President should watch this video. There is no way, we as citizen/ tax payers should be paying more to the federal government ,than the state government. Our founding fathers would be turning in their graves, if they new this.