Final answer:
If local governments had greater power to challenge federal laws, it could lead to increased decentralization of legislative authority.
Step-by-step explanation:
One possible outcome if local governments had greater power to challenge federal laws is increased decentralization of legislative authority.
Currently, the power between federal and state governments is balanced in a federalist system. However, if local governments were given more power, it would lead to a shift of authority from the federal level to the local level. This would result in each local government having more autonomy to create and enforce laws within their jurisdiction.
For example, if a state disagrees with a federal law, they could challenge it in their own court system and potentially nullify or modify its implementation within that state.