Federalism influences political power distribution by allocating authority between national and regional governments. In a federal system, both levels of government have distinct powers and responsibilities, enabling local entities to address specific community needs while maintaining a unified national framework. This division can enhance democratic participation by allowing regions to tailor policies to their unique circumstances. However, it can also lead to tensions and conflict when jurisdictions overlap or when states pursue divergent priorities. Ultimately, federalism promotes a balance between local governance and national cohesion.