The architects of projects like Próspera are drafting legislation to create US cities that would be free from federal regulations.
Several groups representing “startup nations”—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 nation 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….
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 nations 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….
Notably, the current government of Honduras considers Próspera and its special economic status to be illegal.
The country’s previous president, Juan Orlando Hernández, gave Próspera a permanent charter to operate on its own terms.
However, many Honduran citizens opposed Próspera, arguing that it has increased poverty and worsened biodiversity in the area.
The Honduran Congress passed a law in 2022 repealing the allowance of SEZs, and Próspera sued the Honduran government shortly after. The lawsuit is ongoing….
Frontier Foundation president Nick Allen tells WIRED that using federal land would lower the cost of development for startup cities. The Frontier Foundation suggests that federally owned land outside western cities like Boise, Idaho; Grand Junction, Colorado; and Redmond, Oregon would be suitable candidates.