The U.S. Congress, as the legislative branch of government, is charged with making the national laws of the country, but in fact, all three branches of government formulate and implement a variety of laws and regulations.

To enact a federal law, a bill must first pass in both the House of Representatives and the Senate, usually after undergoing lengthy scrutiny in subcommittees and committees of both chambers of Congress. If the Senate and House of Representatives pass different versions of the same bill, a conference committee composed of members of both chambers meets to draw up a compromise version that can be passed and signed by the President.

The President's rejection of a bill, known as a veto, can be overridden only by a two-thirds vote in both houses of Congress.

Once a bill is signed into law, it is known as a federal statute. The enactment of a statute, however, does not necessarily mark an end to law making.

Many statutes contain very general language, and often require elaborate interpretations and regulations that must be drawn up by the federal agency charged with implementing the new law. In fact, federal statutes often explicitly authorize regulatory agencies in the executive branch to enforce the laws through such regulations.

If a dispute arises over the meaning or application of a federal statute, the issue may come before a judge whose decision can have the effect of redefining the statute’s meaning. If the question before the court involves an agency’s rules or regulations implementing a statute, the court will often send the matter back to the agency for refinement.

If the court finds that the statute actually contradicts the Constitution, the statute can be stuck down in part or in its entirety as "unconstitutional."

Executive regulations issued pursuant to valid legislative authority carry the same force of law as statutes passed by the Congress.

Laws that arise from these case-by-case judicial decisions, which establish precedents that are binding on citizens and government alike, are often referred to as "common law.” In the U.S. legal system, these precedents, depending on the circumstances, may carry as much weight and authority as the actual provisions of federal statutes. In the decentralized federal system of the United States, most of the responsibility and authority for what happens in the daily lives of people belongs to state and local government. For example, with certain exceptions, most laws against criminal activity are state laws. States are chiefly responsible for education, welfare, many public services, and the licensing of everything from local businesses to the drivers of motor vehicles.

Laws dealing with all these matters, and a host of others, are proposed by state legislatures and signed by governors, or by local governing councils and boards. Similarly, disputes over the interpretation and application of state laws and regulations are generally resolved in state and local courts.

The demarcation between federal and state authority often is not clear, and in some instances, overlaps. Federalism is never a tidy process, but does strive to push decision-making as close as possible to where government can best know and respond to the needs and interests of the people.

Many states also have provisions for circumventing the state legislature and placing proposals directly before the voters through what are called initiatives. An initiative can qualify for an election ballot if a petition is signed by a certain percentage of the state's registered voters.

In California, for example, voters typically have voted on initiatives ranging from setting term limits for state representatives to reforming automobile insurance policies.

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