commerce power

Commerce power refers to Congress’s power to regulate the channels and instrumentalities of interstate commerce. 

• Channels refers to the highways, waterways, and air traffic of the country. 
• Instrumentalities refers to cars, trucks, ships, and airplanes. 

Congress also has power to regulate activities that have a substantial effect on interstate commerce. Congress’s commerce power is authorized by Article 1, Section 8, Clause 3 of the United States Constitution, also known as the Commerce Clause. 

Congress’s commerce power is one of their farthest reaching sources of regulatory authority and has been broadly interpreted throughout the years to support a wide range of statutes. For example, commerce power is the basis for the Americans with Disabilities Act, the Civil Rights Act of 1964, and the Federal Food Drug & Cosmetic Act to name a few. 

Additionally, Congress’s commerce power has a preemptive effect on the ability of state governments to regulate commerce. Under the doctrine of the Dormant Commerce Clause, states are prevented from discriminating against each other or passing laws which burden interstate commerce. For example, a Tennessee statute which required parties wishing to operate a liquor store to obtain a license unless they lived in Tennessee for over two years was struck down as unconstitutional for violating the Dormant Commerce Clause in Tenn. Wine & Spirits Retailers Association v. Thomas. 

[Last updated in July of 2022 by the Wex Definitions Team]