They watch, of course. The federal gov't is too powerful at this time to push back against (and people shouldn't anyway) in any futile attempt to remove them. Cameras are everywhere watching us, not just in the hands of the feds.
The real thing is that of all the watching they do, nobody from The Shire seems to do things to set their agents in motion against freedom activists. Nobody wants to get anymore involved in "the system" than they already are. Freedom loving people have a firm grasp on the simple fact that being part of such a system, would otherwise allow such agents (and/or their vile ilk) to have a claim on their lives.