Federally means at the level of the national government rather than state or local governments. In the United States, we have a federal system where power is shared between the national government in Washington, D.C., and the fifty state governments. When something is done federally, it applies to the entire country.

National parks like Yellowstone are federally protected, meaning the U.S. government manages them for all Americans. When a law is passed federally, it becomes law in every state. The FBI is a federal agency that can investigate crimes across state lines, while local police departments work within their own cities or counties.

Some things are handled federally while others are left to states. For example, driver's licenses are issued by each state, not federally. But Social Security is a federal program that works the same way everywhere in America. Understanding what happens federally versus at the state level helps you understand how American government actually works. When you hear that something is “a federal matter,” it means the national government, not your state, has authority over it.