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Oh, there will be cross raiding. If it gets too bad, the rest gang up using the skeleton force to organize it. Maybe mandate a minimum 1% GDP military budget? But this will not solve all problems. This is just the only way to possibly control this much territory.

Much smaller (percentage wise) than what the US has. No, I don't think a strong central government could survive. Ban slavery, enshrine people's freedom to leave a planet/sector (if they can afford it), then have a skeleton of a military that can combine sector level militaries under it to...

The solution, I think, is sorta rule the galaxy. Basically, establish some minimal rights, then federalize the hell out of it.