Two current controversies in Iraq provide current examples of federalism.
The first is its structure and whether a federal, rather than unitary structure, would be more appropriate for Iraq. Joe Biden, Delaware Senator and rumored presidential candidate suggests that Iraq should be divided into three separate areas, one controlled by the Kurds, one by Sunni Muslims, the other by Shiites. It's not a new idea. Supporters argue that this form is better able to keep the peace, and that there is no historical reason why the three groups should have been forced into one country to begin with.
The second concerns the recent controversy with Blackwater, the private firm hired by the State Department to protect themselves and other diplomats. Considering that our military budget is just shy of $1 trillion a year, one wonders why our military can't do it. This is a current example of privatization. Many other firms also have been subcontracted to perform services originally served by the military. It's good business.