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4 months ago
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Several groups representing “startup cities”—tech hubs exempt from the taxes and regulations that apply to the countries where they are located—are drafting Congressional legislation to create “freedom cities” in the US that would be similarly free from certain federal laws, WIRED has learned.
According to interviews and presentations viewed by WIRED, the goal of these cities would be to have places where anti-aging clinical trials, nuclear reactor startups, and building construction can proceed without having to get prior approval from agencies like the Food and Drug Administration, the Nuclear Regulatory Commission, and the Environmental Protection Agency.
Trey Goff, the chief of staff of the startup city known as Próspera, tells WIRED that he and other Próspera representatives working under an advocacy group called the Freedom Cities Coalition have been meeting with the Trump administration about the idea in recent weeks. He claims the administration has been very receptive. In 2023, Trump floated the idea of creating 10 freedom cities. Now, Goff says that Próspera’s vision is to create “not just 10, but as many as the market can handle.” They hope to have drafted legislation ready by the end of the year.
“The energy in DC is absolutely electric,” Goff says. “You can tell in meetings with the people involved that they have the mandate to do some of the more hyperbolic, verbose things Trump has mentioned.”
Three Paths Forward
According to Goff, Freedom Cities Coalition has briefed White House officials on three options for creating freedom cities. One is through “interstate compacts.” In this scenario, two or more states could set aside territories with shared tax and regulation policies, with some state-specific carve-outs. Under existing law, these compacts can’t be revoked, though they can be dissolved under certain circumstances.
If an interstate compact is approved by Congress, it becomes valid under federal law. Goff says the coalition is considering Congressional legislation that would give “advanced consent” to any freedom city compacts. That way, Congress wouldn’t need to approve each individual city.
Two other options are creating federal enclaves with special economic and jurisdictional zones, or having Trump issue executive orders to create each new freedom city.
“It depends on what Trump and the White House want to do,” Goff says. “Whatever pathway they want to take, we want to help them make that a reality.”
The White House did not respond to a request for comment from WIRED.
A Network of Backers (and Detractors)
Freedom Cities Coalition was created by an entity called NeWay Capital LLC, which owns several trademarks for Próspera. Since opening on the Honduran island of Roatán in 2020, Próspera has been attracting tech workers and startups by promising low taxes, few regulations, and a businesslike government that considers its citizens to be akin to customers. Its financiers include Pronomos Capital, a venture capital firm backed by Peter Thiel and Marc Andreessen, and Coinbase.
Startup cities outside the US have largely relied on the creation of special economic zones (SEZs), where the regular rules governing businesses are waived, often in order to attract foreign investment. The hope, it appears, is to bring a similar model to the US.
