Expanding workforce mobility, addressing labor shortages, and supporting individuals as they navigate career pathways is a top of mind issue for state legislators this session. As DQC continues to track education and workforce data legislation for 2025, we’re noticing a trend: the proposal of interstate licensure compacts—agreements that allow licensed professionals to work across state lines with fewer administrative barriers. Interstate licensure compacts allow professionals, particularly in healthcare, social work, and dietetics, to work between states more easily, ensuring that employment opportunities are not delayed by administrative hurdles. Two key factors are driving interest in licensure compacts:
- Expanding Telehealth: The COVID-19 pandemic exposed licensing gaps that restricted telehealth providers from offering cross-state care, prompting many states to adopt temporary measures and highlighting the need for lasting solutions. Interstate licensure compacts provide a permanent framework to streamline licensing and expand telehealth access.
- Addressing Workforce Shortages: Beyond telehealth, workforce shortages in healthcare and social services persist, and restrictive licensing policies make it harder for professionals who live in one state but work in another. Compacts help fill critical gaps by allowing states to quickly respond to labor market needs, improve access to services, and reduce employment bottlenecks caused by inconsistent state licensing policies.
Interstate licensure compacts call for participation in centralized data systems that enhance states’ ability to track and share key workforce information. Many of these agreements would require states to contribute uniform data on licensees—including continuing education, licensure status, disciplinary actions, and compliance records—into a shared system. By ensuring consistent data collection and oversight, these systems support workforce mobility for jobseekers while strengthening licensure enforcement, anticipating workforce needs and employment trends for policymakers. Organizations like The Council of State Governments (CSG) have been important to these efforts by providing model legislation and best practices through the National Center for Interstate Compacts (NCIC) Database. Additionally, national organizations like Federation of State Medical Boards (FSMB), Academy of Nutrition and Dietetics (AND), Association of Social Work Boards (ASWB) and the National Association of Social Workers (NASW) have been strong advocates for licensure compacts, emphasizing their role in workforce development and removing regulatory barriers.
States are increasingly recognizing the many benefits of interstate licensure compacts. Legislative proposals from the 2025 session, that we have seen so far, to expand or establish compacts include career fields such as:
- Social Work: Florida, Indiana, Maryland, Nevada, North Dakota, and South Carolina
- Dietetics: Indiana, Kansas, Kentucky, Missouri, and New Hampshire
- Physical Therapy and Audiology/Speech-Language Pathology: New Jersey and New York
- Education: Maryland
- Medicine: New York
- Occupational Therapy: Oregon
These bills reflect a broader effort from states to streamline licensing processes and remove administrative barriers for professionals working across state lines.
Interstate licensure compacts are an example of how leaders can leverage data to address workforce challenges that face states today. By streamlining administrative processes and supporting more coordinated data systems, these agreements help states better navigate labor market demands while enabling jobseekers to work where they are needed most.
