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Clinical tests without approval, autonomous cars without regulations, nuclear reactors and nuclear energy without state supervision and a special economic zone in which there are hardly any taxes to pay and workers' rights are also suspended. This is how numerous heads of big tech companies and US investors envision the future – from Peter Thiel to Sam Altman and Marc Andreessen. Donald Trump is supposed to make it possible. During the 2023 election campaign, he had already talked about making such Freedom Cities possible in the USA.
There has already been a Freedom City since 2020: Próspera on the Honduran island of Roatán, which was financed by Thiel and Andreessen, among others. This was approved by the former government of Honduras, but after a change, local start-ups are facing fears. The current government considers the status to be illegal, the citizens are said to reject the project and there is a legal dispute over the revocation of the special status.
There have been plans to establish such cities in the USA for some time. Wired is now reporting on meetings between the group and representatives of the White House. The interest group is called the Freedom Cities Coalition. "Unleash America's dynamism with Freedom Cities" is the slogan on the FCC website. The "prosperity zones" are a unique opportunity to solve the housing market crisis, bring American manufacturing home and unleash the full potential of American businesses.
Freedom Cities by decree or Congress
The page goes on to discuss the modernization of the regulatory system and how such a Freedom City could be legally implemented. The criticism of the current situation is that there is a risk of losing millions of jobs if nothing is changed, innovation is slowed down and global leadership is jeopardized as a result. Not a word about the fact that regulation can protect people. Democratic principles would not apply, the power would lie with the owners of the cities or the CEOs.
According to Wired, large production centers are to be built in the cities. Trey Goff, Chief of Staff of Próspera and FCC member, told the magazine that construction companies could bypass the environmental review process, for example. One of the startups based on the island is Minicircle – a biotech startup funded by Thiel and OpenAI CEO Sam Altman. One of the founders of Minicircle, Mac Davis, told Wired that he would like to see a city where everyone and their dog receives gene therapy, a "city of longevity".
SpaceX, Tesla and Anduril are also among the beneficiaries of such cities because they rely on autonomous systems that are regulated in the USA. Sam Altman, for example, is involved with Oklo, his nuclear company, which is also subject to government restrictions. However, completely free handling of data and resources could also bring advantages for AI providers.
It is unclear how far the talks with the White House have progressed. What is clear is that they are taking place and Goff expects a result by the end of the year. The FCC describes three options for the establishment of Freedom Cities: Trump could sign an executive order under which certain geographical areas could be converted – such a decree comes with restrictions. Another option would therefore be for Congress to approve a permanent agreement under which "special regulatory and tax zones" can be established. As a third approach, the FCC speaks of a "federal enclave concept" in which Congress agrees to "special jurisdictional zones with comprehensive legal frameworks and strongest legal powers".
(emw)
