The difference between federal and state government lies in their scope of authority. Federal government, also known as the national government, operates at a country-wide level, overseeing matters like defense, foreign policy, and currency. State governments, on the other hand, focus on issues within their specific state boundaries, such as education, transportation, and local law enforcement. While federal laws apply to the entire nation, states have the power to enact laws unique to their jurisdiction, creating a dual system that balances centralized and localized governance.