Definition of defederalization in US English:

defederalization

(also defederalisation)

noun

  • The action, fact, or process of removing an organization, industry, etc., from the control or jurisdiction of a federal government or any central governing authority; (also) the action, fact, or process of dissolving any federation or federal state or association.

Origin

Early 20th century; earliest use found in Joplin (Missouri) Globe. From de- + federalization.