by Eric Wood
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States can make binding agreements with each other - not informal cooperation, but legally enforceable contracts between state governments, some of which carry the force of federal law once approved by Congress.
What the Constitution actually allows
Article I, Section 10 permits states to enter into “agreements or compacts” with each other, but requires congressional consent for most of them - a deliberate check meant to prevent states from forming rival alliances or undermining federal authority through state-to-state deals. Once approved by Congress, an interstate compact functions as both state law in each participating state and, in many cases, as federal law as well, which gives it stronger legal standing than an ordinary agreement between states would otherwise have.
Real examples already in daily use
The Port Authority of New York and New Jersey exists because of an interstate compact between those two states, jointly managing shared infrastructure like bridges, tunnels, and airports that cross the state line. The Multistate Tax Compact coordinates tax administration across participating states. Driver’s license compacts let states share violation and suspension information so a license suspended in one state is recognized in others. Even professional licensing increasingly works this way - nursing and medical licensure compacts let professionals practice across multiple member states under one license rather than needing separate approval in each.
Worth knowing
Not every interstate agreement requires congressional consent - the Supreme Court has held that consent is only constitutionally required for compacts that could genuinely threaten federal supremacy or another state’s interests. Many routine, low-stakes interstate agreements operate without ever going through Congress at all.
Why it still matters
Interstate compacts are one of the more practical, underappreciated tools states have for solving shared problems - water rights disputes along shared rivers, regional transportation infrastructure, and emergency management coordination during natural disasters that cross state lines all rely on this same constitutional mechanism, usually without much public attention.
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