When a problem crosses state lines, the solution often begins with an agreement — an interstate compact. Authorized by the U.S. Constitution, interstate compacts allow states to work together to address shared challenges that extend beyond a single state’s borders.
Interstate compacts are formal, legally binding agreements. Like a contract, they carry the force of law in each participating state and create a durable framework for cooperation.
Interstate compacts are developed by states, governed by states, and implemented through state law.
The U.S. Constitution recognizes interstate compacts as a lawful tool for state cooperation. Article I, Section 10 requires congressional consent only for compacts that affect federal authority or alter the balance between state and federal power.
In practice, many modern compacts address matters firmly within state jurisdiction and do not require formal congressional approval. When consent is required, it may be granted before or after enactment and may be explicit or implied.
This constitutional framework allows states to collaborate effectively while preserving the principles of federalism.
Each state joins a compact by enacting the same statutory language, ensuring consistency across all member states. Many compacts also create a shared governance structure, such as a commission, to oversee implementation and coordination.
Compacts are designed to be both durable and adaptable. While the underlying agreement remains stable, rules and procedures can evolve over time to respond to changing needs and emerging challenges.
Historically, interstate compacts were used to resolve boundary disputes or manage shared waterways. Over time, their role has expanded significantly.
Today, compacts address a wide range of complex policy areas, including professional licensing, public safety, infrastructure, emergency management, and natural-resource management. Through these agreements, states coordinate responses, share data and expertise, and deliver better outcomes for the people they serve.
Every state participates in dozens of interstate compacts—an average of more than 40 per state—representing thousands of individual legislative enactments nationwide.
One of the fastest-growing areas of compact activity is occupational licensure mobility. These compacts streamline professional credentialing, allowing licensed workers such as nurses, teachers, social workers and therapists to move across state lines without restarting the licensing process. Since 2015, states have enacted more than 400 pieces of licensure compact legislation.
In 2026, CSG launched a new project to support states achieve efficient software solutions through state collaboration. The CSG Intergovernmental Software Collaborative provides states with resources and technical assistance to form new and leverage existing state partnerships to develop and maintain software technology that meets collective public policy needs.
The project builds from the work of NCIC to create CompactConnect, a shared, open source data platform for occupational licensure compacts. The platform saves an estimated $1.1 million per compact compared to building separate systems
These compacts streamline professional credentialing, allowing licensed workers like nurses, teachers, social workers, therapists and others to move across member states without restarting the licensing process each time. Since 2015, states have enacted over 400 separate pieces of licensure compact legislation.
This approach has proven especially valuable in fields facing workforce shortages and high mobility demands. In 2020, the U.S. Department of War entered into a cooperative agreement with CSG to create new licensure compacts. While these compacts are for the professions at large, the impetus was to particularly help military personnel and their spouses maintain their careers despite frequent relocations that can otherwise delay relicensing for months.
This adaptation allows for faster deployment of essential workers, greater access to care and services, and reduced administrative costs for state agencies.
Through this partnership, 10 occupational licensure compacts have been enacted covering teachers, dentists and dental hygienists, dietitians, cosmetologists, massage therapists, school psychologists, social workers, estheticians, athletic trainers and respiratory therapists.
