States have always had the ability to regulate institutions conducting instruction or other postsecondary activities in their states. In Fall 2010, a Federal regulation was first released tying institutional and student eligibility for Title IV Federal Financial aid to an institution complying with State laws. Colleges and universities were to be expected to demonstrate compliance with regulations in a State in which the institution is not physically located or is otherwise subject to State jurisdiction. This regulation, 34 C.F.R. §600.9(c), was vacated in 2012 by the Federal courts on procedural grounds. Since that time, attempts to re-establish the regulation have met difficulty reaching a final effective solution. In 2014, a rulemaking panel failed to reach consensus on a proposed rule. A subsequent rule, released in by the Department of Education in 2016, has since been delayed and sent back to rulemaking. The paper provides a history and direction in the creation of new Federal regulations for State Authorization of out-of-state activities. This is a good resource for those who wish to learn about the foundation of state authorization.