Final answer:
Cooperative federalism is the form of regulated federalism that allows the federal government to take over areas of regulation formerly overseen by states or local governments.
Step-by-step explanation:
The form of regulated federalism that allows the federal government to take over areas of regulation formerly overseen by states or local governments is called cooperative federalism. Under cooperative federalism, both levels of government coordinate their actions to solve national problems, leading to the blending of layers, similar to a marble cake. In this system, the federal government becomes active in policy areas previously handled by the states.