The U.S. Department of Justice’s recent call for public comments on state laws that significantly burden the national economy is a crucial opportunity to address a growing problem. The Goldwater Institute has long championed the principles of federalism and individual rights, essential pillars of our constitutional framework. By allowing states to test different approaches, federalism serves as a powerful safeguard of liberty and a source of innovative solutions at the state and local level.
But a commitment to federalism does not require a blind acceptance of every state law, especially those that burden people in other states or disrupt a free and open national marketplace. State authority that collides with constitutionally protected rights—particularly economic freedom—is incompatible with the U.S. Constitution. The Commerce Clause was designed to ensure the freedom to travel and trade, yet today Americans often encounter artificial barriers created by a patchwork of conflicting state regulations. This compliance nightmare complicates transactions, stifles innovation, and harms consumers across the country.
The Interstate Commerce Barrier in Practice
The problems caused by a fragmented system of state regulations are not theoretical; they’re a daily experience for people and businesses in nearly every industry. A lack of policy coordination between states cripples interstate commerce, undermines economic opportunity, and erodes individual liberty. A regulation that makes it harder for a business to operate in one state often ripples outward, raising costs and limiting choices nationwide.
- Agricultural and Food Industry: One state might impose a specific labeling requirement for a certain ingredient, while a neighboring state mandates a conflicting rule. A company that wants to sell its product in both states must either create two separate production lines or, more often, adopt the most restrictive state standard nationwide. This costly race to the bottom ultimately drives up consumer prices.
- Transportation and Logistics: When trucks travel across state lines, they face a complex web of regulations on everything from truck size and weight to emissions standards and inspection requirements. This regulatory maze creates delays and raises shipping costs, making it more difficult for companies to operate efficiently across the country.
- Occupational Licensing: The burden of a regulatory patchwork limits economic mobility and undermines the freedom of Americans to move and choose where they live. A licensed professional, like a nurse or a plumber, who relocates from one state to another often has to go through a costly and time-consuming process to get relicensed, even though their skills and training are the same. This hurts both the individual and consumers by creating needless labor shortages.
- Technology and AI: The challenges are now most acute in the rapidly evolving technology sector, especially with artificial intelligence and autonomous vehicles. The Goldwater Institute has championed a free-market approach to autonomous vehicle technology, highlighting Arizona’s framework as a potential national model. However, many other states are moving in the opposite direction. A self-driving truck that operates seamlessly in Arizona might be required to have a human driver in a neighboring state. This creates uncertainty for companies, discourages investment and innovation, and ultimately prevents the U.S. from realizing the full economic and safety benefits of this technology.
The Path Forward: A Cohesive National Market
Ultimately, the goal is not to eliminate all regulations, but to ensure that laws in one state do not impose unreasonable burdens on the liberty of those in other states. By restoring the Commerce Clause’s intended purpose and holding states accountable for regulatory overreach, we can create a system that fosters innovation, lowers costs, and expands freedom and opportunity for all Americans.
Jen Springman is the Coalitions Manager at the Goldwater Institute.
