An intergovernmental pact is an agreement between two or more states of the United States, which is approved by the respective legislators of those states and, if necessary, approved by the United States Congress on the basis of the purpose of the Covenant. Pacts that get congressional approval become federal. As interstate treaties, pacts affect the rights and duties of the states you (and their citizens); The U.S. Supreme Court has indicated that the interests of non-partisan states could be a factor in determining the need for congressional approval. A pact usually contains provisions relating to its purpose; The specific conditions relating to the theme of the pact; the creation, in some cases, of an intergovernmental agency to manage the pact or other management method; Funding sources and other provisions of the treaty, such as dispute resolution, enforcement, termination of the pact or resignation of a member. Many examples of compacts and intergovernmental agencies to manage them are available online. Compacts that require day-to-day or future activities may provide one or more mechanisms for acquiring funds to finance these activities. Among the sources of funding for activities under an intergovernmental pact are: the approaches of “compacts” in management vary. Some pacts, especially those that set specific conditions for their purpose, may simply designate the agencies of the states that are parties to the Covenant and are responsible for complying with those conditions.  Where meaningful coordination and communication between states is required, a pact may designate one or more persons per state who are responsible for monitoring the state`s performance under the Covenant.  Other compacts may assign important regulatory powers and expertise to intergovernmental organizations to achieve compact objectives and manage compliance.  These intergovernmental organizations can also promote cooperation and serve as essential sources of information on the theme of the Pact.  Interstate compacts are contracts negotiated between states.
The U.S. Supreme Court ruled that the term “compact” should be understood as a “treaty.”  Interstate states are the only method authorized by the U.S. Constitution for states to significantly alter their mutual relations.  As such, they provide a mechanism for states to create, among other things, intergovernmental agencies, often referred to as “commissions” or “authorities,” to address problems more effectively than in large conurbations, for example, which cover parts of several states, and to resolve disputes between states cooperatively instead of resorting to litigation.  While intergovernmental pacts historically consisted only of states as parties, the federal government has recently participated in some pacts.  Indeed, some Pacts require a representative of the federal government to participate in compact governance.