verb (used with object), de·fed·er·al·ized, de·fed·er·al·iz·ing.
to shift the functions or powers of (an agency, service, etc.) from the jurisdiction of the federal government to that of state or local government: to defederalize construction loans.
Also especially British, de·fed·er·al·ise.
Origin of defederalize
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019