Аннотация:The article reviews certain aspects of contemporary trends in the evolution of local self-governance in the US. We demonstrate that federal subsidies made available through federal mandates have emerged as leverage and now provide an important means to direct the behaviour of local governments in the US. Furthermore, along with other factors, they continue to shape how intergovernmental relations evolve in the US. We describe approaches for determining the best policymaking tools for such a system and its components, to improve the efficiency of local governments and develop local communities. Key routes are identified for the models of local and self-governance in the US that are currently being considered. We highlight takeaways from the US policymaking experience regarding funding, along with the principles underlying the federal government’s participation in the funding of local entities. The mechanics of the use of and change in the institutionalised forms of federal influence on local governments are revealed.