The American government found itself in quite an awkward position at this time.
They realized that the situation had spiraled out of their control. As soon as the United Kingdom interfered with any state, that state would remain neutral during the war, or even cut off its connection with the federal government outright.
Although only a few states had held independence referendums, this did not mean the other states still in the Federation were loyal.
The problem was, the American government did not have a good solution. With most of the Military already deployed to the front line to fight the Allied Army, the American government also lacked sufficient troops to prevent these states from defecting.