Under federalism, the national government pressures state governments to take on a certain policy by using mandates or funding.

Under Coercive federalism,  the national government pressures state governments to take on a certain policy by using mandates or funding.

The power division that occurs between the local, state and the national government is known as federalism. The power called supreme power of an independent state can have the power for the regulation of the problem that lies internally and cannot be controlled by any foreign countries.

For instance when the national government is ready for granting the federal highway money to the state on a condition that if the state agrees to rise the drinkage age as 21 is a coercive federalism. It is a form of federalism that always pressures the states to modify its policies through regulations, conditions with threats and mandatory rules.