
The Commerce Clause and the Privileges and Immunities Clause are two clauses in the US Constitution that discuss the interstate relationship. The Commerce Clause grants Congress the power to regulate commerce between states and with foreign nations and Indian tribes. It was included in the Constitution to address the problems of interstate trade barriers and enable the creation of a free trade zone among the states. The Privileges and Immunities Clause, on the other hand, promotes interstate citizenship by ensuring that sojourners are treated the same as a state's citizens.
| Characteristics | Values |
|---|---|
| Interstate compacts | States may enter into agreements or compacts with another state or states, provided they have the consent of Congress |
| Interstate disputes | Congress has the power to regulate interstate commerce and restrict states from impairing interstate commerce |
| Full faith and credit | Important with respect to the interstate enforcement of child support orders issued by state courts |
| Privileges and immunities | Ensures that sojourners are treated in the same manner as the state’s citizens |
| Rendition of fugitives from justice | Congress has the power to regulate foreign, interstate, and Indian nation commerce |
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What You'll Learn

The Commerce Clause grants Congress power to regulate interstate commerce
The Commerce Clause, which falls under Section 8, Clause 3 of the US Constitution, grants Congress the power to regulate interstate commerce. This clause was included in the Constitution to address the issues of interstate trade barriers and the ability to enter into trade agreements. It empowers Congress to regulate commerce "with foreign Nations, and among the several States, and with the Indian Tribes".
The interpretation of the word "commerce" has been a subject of debate, with some arguing that it refers to trade or exchange, while others contend that it describes the broader commercial and social intercourse between citizens of different states. The Supreme Court has generally taken a broad interpretation of the Commerce Clause, holding that intrastate activity could be regulated under it, provided that it is part of a larger interstate commercial scheme. This interpretation was demonstrated in the 1824 Gibbons v. Ogden case, where the Court ruled that intrastate activity could be regulated under the Commerce Clause if it was part of a larger interstate commercial scheme.
The Commerce Clause also restricts states from impairing interstate commerce. Early Supreme Court cases viewed the clause as limiting state power rather than as a source of federal power. The Court's early interpretations focused on the meaning of "commerce" while paying less attention to the meaning of "regulate". However, in the 1930s, the Supreme Court increasingly heard cases on Congress's power to regulate commerce, which led to a marked evolution in its jurisprudence on the interstate Commerce Clause during the 20th century.
The Court's interpretation of the Commerce Clause continued to evolve in the 20th century, with the 1937 NLRB v. Jones & Laughlin Steel Corp case recognising broader grounds for regulating state activity. The Court held that an activity was considered commerce if it had a "substantial economic effect" on interstate commerce or if the "cumulative effect" of an act could impact such commerce. This demonstrated the Court's newfound willingness to interpret the Commerce Clause broadly.
In conclusion, the Commerce Clause grants Congress the authority to regulate interstate commerce, addressing issues of trade barriers and trade agreements. The interpretation of the clause has evolved over time, with the Supreme Court taking a broad interpretation and recognising the substantial economic effects of interstate commerce.
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The Necessary and Proper Clause
> "to make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."
The inclusion of this clause in the Constitution was a highly debated topic between Federalists and Antifederalists during the Constitutional Convention in 1787. The Federalists, who supported the clause, argued that it was necessary to give the Constitution flexibility to accommodate future issues and the changing needs of the country. On the other hand, the Antifederalists opposed it, fearing that it would grant the central government almost unlimited power and enable Congress to justify nearly any action.
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The Interstate Compacts Clause
For example, the Connecticut River Basin Atlantic Salmon Restoration Interstate Compact was enacted by Connecticut, Massachusetts, New Hampshire, and Vermont to collectively address the issue of salmon restoration in the Connecticut River Basin. Similarly, the Merrimack River Anadromous Fish Restoration Administrative Agreement was signed by Massachusetts and New Hampshire to work together on fish restoration in the Merrimack River.
Overall, the Interstate Compacts Clause is a vital tool for promoting collaboration and resolving differences between states in the United States. By empowering states to work together through mutual agreements, this clause helps to strengthen the federal system and ensure a more cohesive and effective approach to governance.
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The Privileges and Immunities Clause
The clause does not extend to all commercial activity and does not apply to corporations, only citizens. However, the Supreme Court has recognised some rights protected by the clause, such as the right to own property. The clause has been interpreted to include the right to government seats/positions, habeas corpus, and the use of navigable waters.
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Interstate disputes and enforcement
The US Constitution contains sections that govern interstate relations, including interstate disputes and enforcement. This includes the Privileges and Immunities Clause (Article IV, Section 2), which ensures that individuals from one state are treated similarly to citizens of another state. For example, in the context of taxation, a state cannot deny non-residents a general tax exemption provided to residents, although it can offer specific deductions related to in-state property or income.
The Privileges and Immunities Clause also applies to corporations. A state may discriminate against foreign corporations (chartered in another state) in terms of fees and taxes and may prohibit them from conducting business within the state without violating this clause. However, this discrimination may violate the Interstate Commerce and Due Process of Law Clauses.
The Commerce Clause (Article I, Section 8, Clause 3) grants Congress the power "to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." This clause enables Congress to address issues among the states that individual states cannot effectively resolve, such as interstate trade barriers. The Supreme Court has generally interpreted the Commerce Clause broadly, holding that Congress can regulate intrastate activity if it is part of a larger interstate commercial scheme or has a substantial economic effect on interstate commerce.
The Necessary and Proper Clause, combined with the Commerce Clause, further empowers Congress to address interstate issues. However, the power granted by the Commerce Clause is not unlimited. Congress cannot invoke its commerce power when there is no interstate issue to address, and its authority does not extend to intrastate economic activities, which are within the jurisdiction of the individual states.
Interstate compacts and administrative agreements are also used to facilitate cooperation between states. The Interstate Compacts Clause (Article I, Section 10) allows states to enter into agreements with other states, provided they have congressional consent. These compacts and agreements enable states to work together while also competing to attract businesses, tourists, and tax revenues.
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Frequently asked questions
The two clauses of the US Constitution that discuss interstate relationships are the Commerce Clause and the Privileges and Immunities Clause.
The Commerce Clause grants Congress the power "to regulate commerce with foreign Nations, and among the several States, and with the Indian Tribes." This clause enables Congress to address problems among the states that individual states are unable to deal with effectively.
The Privileges and Immunities Clause is designed to promote interstate citizenship by ensuring that sojourners are treated the same as a state's citizens.

























