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Interstate Compacts: An Overview
August 15, 2022
The Compact Clause (Article 1, Section 10, Clause 3) provides that No State shall, without the Consent
of Congress, ... enter into Any Agreement or Compact with another State, or with a foreign Power.
Although straightforward on its face, the Compact Clause serves multiple functions. It protects the
national interest by requiring Congress's consent for interstate compacts while, at the same time,
empowering states to negotiate and use compacts as a tool to address problems that cross state lines.
Along with interstate compacts, the Compact Clause also requires congressional approval for any state
agreement with a foreign Power (i.e., a foreign government). States' pacts with foreign governments
and other limits on states' power to engage in foreign affairs are discussed in a separate Legal Sidebar.
The Compact Clause does not prescribe all elements of the compact-making process, and the Supreme
Court has not always interpreted the requirement that Congress consent to any interstate compact
literally. This Sidebar discusses the Supreme Court's Compact Clause jurisprudence and provides an
overview of Congress's approval practice for interstate compacts and agreements.
What Are Agreements and Compacts?
The Compact Clause requires congressional approval for Agreements and Compacts but does not
elaborate on the distinction between the terms. According to the Supreme Court, both terms refer to
contracts between state governments stipulating the conduct or claims of the parties. There is little
difference between the terms except that a compact may reflect a more formal and serious engagement
than an agreement. When Congress approves an agreement or compact, its consent transforms the pact
into federal law. As a result, interstate compacts have dual functions: they operate simultaneously as
contracts between states and, once approved by Congress, as federal law.
Purpose of Congressional Consent Requirement
The ability to form compacts with other governments is a defining characteristic of sovereignty, and the
Compact Clause is meant to balance federal and state control over this power. By allowing states to
negotiate compacts but requiring congressional approval, the Compact Clause adapts the traditional
compact-making power to the American constitutional system in which both the federal government and
the states possess sovereignty authority. The clause safeguards national interests by giving Congress the
ability to control matters that cross state borders but are not suitable for direct federal regulation. It also
Congressional Research Service
https://crsreports. congress.gov
LSB10807
CRS Legal Sidebar
Prepared for Members and
Committees of Congress

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