Question: Why does the U.S. system of federalism help explain why laws and policies such as minimum wage or healthcare access can differ widely from one state to another? Need Assignment Help? Because state governments can override federal laws whenever they choose. Because federalism divides power between national and state governments, allowing states to respond differently to local needs and values. Because the federal government avoids involvement in most domestic policy issues. Because citizens vote directly on all state laws through referendums.