Which parts of surrogacy are regulated, and by whom?
Most parts of a surrogacy journey are regulated. The agency, in most states, is the exception.
Each professional you work with answers to a different authority:
- The surrogacy agreement is governed by state law. In Illinois, that is the Illinois Gestational Surrogacy Act of 2005. Reviewed by counsel.
- Fertility clinics follow FDA rules on screening and testing for donated eggs, sperm and embryos, and professional standards from ASRM. Clinics report their IVF outcomes to the CDC, and many are members of SART, which publishes clinic data.
- Physicians and nurses are licensed by state boards.
- Attorneys are licensed by the state bar where they practice.
- Escrow agents are licensed under the rules that apply to them in their state.
- Psychologists and other mental-health professionals are licensed by state boards.
| Actor | Regulator | What it covers | How to verify |
|---|---|---|---|
| Surrogacy agency | In most states, no state licensing; New York licenses surrogacy programs | Recruitment, matching, coordination | Ask for its escrow arrangements, its standards and any state license |
| Fertility clinic | FDA; ASRM professional standards; CDC reporting | Donor screening and testing; medical practice; outcome reporting | CDC and SART clinic data; clinic accreditation |
| Physicians and nurses | State medical and nursing boards | Professional license | State license lookup |
| Attorney | State bar | License to practice law | State bar lookup |
| Escrow agent | State licensing, which varies by state | Holding and disbursing client funds | Ask for its license and check it with the issuing state |
| Psychologist | State licensing board | Professional license | State license lookup |
Why are agencies themselves mostly unregulated?
Because state surrogacy laws were written around the agreement and parentage, not around the businesses that arrange them.
When states made gestational surrogacy agreements enforceable, the focus was on who the legal parents are, what the agreement must contain and when it must be signed. The Illinois Gestational Surrogacy Act governs the agreement and parentage; there is no Illinois state license for surrogacy agencies. Reviewed by counsel.
The result is a gap. In most states, no license is needed to open a surrogacy agency, and no state agency checks how it screens surrogates, handles money or advertises. Reviewed by counsel.
The failures of 2025 and 2026 showed what that gap can cost. The Surro Connections agency collapsed in late 2025, leading to a federal indictment in August 2026. The SEAM escrow collapse involved more than $16 million.
Which states license surrogacy agencies?
New York is the main example. New York's Child-Parent Security Act, in effect since 2021, requires surrogacy programs to be licensed by the state. Reviewed by counsel.
Check whether any other state, for example Louisiana or Michigan after its April 2025 law, has added agency licensing. Status as of [date], reviewed by counsel.
Michigan legalized compensated surrogacy in April 2025. Reviewed by counsel. Laws in this area are changing quickly. Check the current status in the states where you and your surrogate live.
What does New York's licensing require?
Under the Child-Parent Security Act, a surrogacy program working with New York surrogates or intended parents must hold a state license, hold client funds in independent escrow, and meet requirements on surrogate protections, including independent legal counsel paid by the intended parents and health insurance for the surrogate. Confirm the full list with counsel. Status as of [date], reviewed by counsel.
Private Label Surrogacy (PLS) is applying for a New York license.
What substitutes for regulation: escrow, SEEDS, counsel
Where the agency is not regulated, three things do the protective work.
Independent licensed escrow. Your money is held by a licensed escrow agent that answers to you, not by the agency. PLS has always used independent licensed escrow. You fund $10,000 at match and the balance before medications start, and you may choose your own escrow company. See how escrow works.
Voluntary standards bodies. SEEDS, the Society for Ethics in Egg Donation and Surrogacy, publishes ethical standards that member agencies agree to follow. It is not a regulator, but its standards give you something in writing to hold an agency to. PLS founder Nancy Block, RN, is a former President of SEEDS. See what SEEDS membership means.
Written contracts with independent counsel. Each side has its own attorney, who answers only to that client. The gestational carrier agreement sets out every payment, every responsibility and what happens if something goes wrong. See surrogacy legal contracts.
How to check an agency's standing in your state
- Ask whether your state licenses surrogacy agencies. In most states the answer is no. If you or your surrogate live in New York, ask to see the license or its application status.
- Ask for the escrow company's name and license. Then check the license yourself.
- Ask about standards. Is the agency a SEEDS member? Will it show you how it meets each standard?
- Check for complaints. Search the agency's name with the words lawsuit, complaint and indictment. Check your state attorney general's consumer protection office.
- Ask who the agency employs. Agencies that employ the attorneys or psychologists they refer you to have a conflict of interest.
For warning signs about money, see agency financial red flags.
What is PLS's regulatory status?
PLS is a gestational surrogacy agency based in Northbrook, Illinois. Illinois does not license surrogacy agencies. Reviewed by counsel. Its journeys are built around the Illinois Gestational Surrogacy Act and the laws of each surrogate's home state.
PLS is applying for a New York surrogacy program license. Status as of [date], reviewed by counsel.
In place of agency regulation, PLS holds itself to standards you can check: independent licensed escrow, independent attorneys and psychologists, a physician's review of every surrogate's records, and leadership from a former SEEDS President. PLS does not employ in-house psychologists, attorneys or escrow.
Sources
- Illinois Gestational Surrogacy Act (2005). Pending review by counsel.
- New York Child-Parent Security Act. Pending review by counsel.
- ASRM (American Society for Reproductive Medicine). https://www.asrm.org
- SART (Society for Assisted Reproductive Technology). https://www.sart.org
- CDC (Centers for Disease Control and Prevention), assisted reproductive technology reporting. https://www.cdc.gov
- SEEDS, Society for Ethics in Egg Donation and Surrogacy.