“Startup Nations” Look to Launch “Freedom Cities” in the US

Groups representing “startup nations” — “tech hubs exempt from the taxes and regulations that apply to the countries where they’re located,” per Wired — are in talks with officials in the Trump administration about potentially building several similar “freedom cities” in the US.

The Big Experiment: Although Próspera in Honduras has successfully launched (not without plenty of controversy), Big Tech’s big dreams of tech utopias have mostly failed to come true… despite plenty of investment and blue-chip pedigree. If freedom cities get the green light, they could spark innovation but also create enclaves built on the power of a tech oligarchy. Your mileage with that tradeoff may vary.

Behind the Cities: Since President Donald Trump teased the idea of instituting 10 freedom cities while on the campaign trail, groups like the Freedom Cities Coalition and Frontier Foundation have put their lobbying power into high gear.

• They’ve outlined three strategies to secure approval for freedom cities — federally approved “instate compacts,” the creation of special economic and jurisdictional zones, or executive order.
• These cities would be able to organize clinical trials, construct nuclear reactors, or test experimental tech without the approval or oversight of agencies like the FDA, EPA, or Nuclear Regulatory Commission.
• The groups are floating the idea of using federal land — including areas outside Boise, Idaho, or Grand Junction, Colorado — as development sites. That would be a much cheaper option than going the private route.

The Future: Both Freedom Cities Coalition and Frontier Foundation have allegedly garnered plenty of support in Washington and are already working with think tanks on drafting legislation that would support freedom cities. The exact legislators who would introduce these bills is still a mystery, but the political tides definitely seem in favor of the idea — people like Peter Thiel and Marc Andreessen, who are already in Trump’s orbit, are big supporters of startup nations.

And considering that venture capital has now turned its attention to industries like energy and defense, there’s plenty of money to be made by greasing the wheels of Washington.