He look’s federal

A phrase said when observing a person who seems to be taking part in undercover surveillance activities, for criminal or other matters, on behalf of the state.

Guy 1: Put away your weed, look at that guy over there
Guy 2: yea, he look’s federal
Guy 3: That’s just my son Nathan Hammer you guys, he’s hoeless and has no relation to the state.
Guy 1: phewww, light the blunt then