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You need to brush up on the Constitution. The Feds cannot dictate law to the states, that's why they do it through falling back on the interstate commerce clause and blatant extortion--an example of the latter being threatening to withhold Federal highway funds if a state doesn't do as the Feds wish. Traffic laws, speed limits/etc, are state laws...
So as you say in your post. Federal Law in some way, shape or form dictates state laws either by withholding highway funds, or blatant extortion.
i was wondering if not having catalytic convertors would give you any more horsepower?
Looks like the OP has an '02 GT. The factory h-pipe is very restrictive on those cars. Our testing has showing up to 20hp with the UPR off-road x-pipe.