When do you stop spring a state? When it is the size of a city? Or the size of a neighborhood? How will spring the state really change anything, on the feder

When do you stop spring a state? When it is the size of a city? Or the size of a neighborhood? How will spring the state really change anything, on the federal level? It might make things better locally, as some of the local government gets closer to the people. But how will this makes things better for people outside of that state?