An Interstate Compact is a formal agreement between two or more states in the United States. These agreements are used to address shared concerns, such as resource management, transportation, or legal matters. By entering into a compact, states can collaborate more effectively and create uniform policies that benefit all parties involved. Interstate compacts require approval from the U.S. Congress, ensuring that they comply with federal laws. Examples include the Port Authority of New York and New Jersey and the Interstate Compact for Adult Offender Supervision. These compacts help streamline processes and improve cooperation across state lines.