Surrogacy in the U.S. isn’t governed by one national rule—it’s a state-by-state patchwork. And in most places, “illegal” doesn’t mean anyone is getting prosecuted. It usually means the contract may not be enforceable or parentage may be harder to secure, especially for LGBTQ+ and single intended parents.

What matters most is simple: Can the agreement hold up, and can you establish parentage cleanly?

Key Takeaways

If you only read one section, make it this one.

• Michigan is no longer a “no” state. Compensated surrogacy is legal and regulated, effective April 2, 2025.
• Massachusetts is now a top-tier Green Light state. Its updated parentage framework took effect January 1, 2025.
• Louisiana, Nebraska, Indiana, and Arizona remain the highest-risk (Red Light) states for most families(why that matters is below).
• Minnesota is a “yes, but” state in 2026: clearer parentage, but matching/agency compliance becomes a real factor under the August 2025 rules.

What “Illegal Surrogacy” Usually Means in Plain Language

“Illegal” is a loaded word. In the surrogacy world, it often points to risk, not criminality.

When people say “surrogacy is illegal” in a state, they usually mean one (or more) of these:

• Void or unenforceable contracts: the agreement may not protect you if there’s a dispute.
• Compensation restrictions: you may not be able to pay a surrogate beyond certain expenses.
• Parentage hurdles: parentage may require extra steps (sometimes adoption), or may depend heavily on the facts.
• Family-structure limits: the answer can change for LGBTQ+ couples, single parents, and families using donor eggs/sperm/embryos.

Traditional vs. Gestational Surrogacy (a Common Source of Confusion)

A lot of fear comes from mixing two very different arrangements under the same label—even though the legal questions they raise are not the same.

Here’s where the confusion tends to happen: when a state is described as “illegal,” it’s often referred to the risks that come up more in traditional surrogacy. Think: who is the legal parent at birth, and whether compensation is treated as crossing a legal line.

Those risks don’t always translate the same way to gestational surrogacy. In gestational surrogacy, the goal is usually to secure parentage through a clear legal process.

That’s why a state can sound “impossible” at first glance, even when a gestational journey can be structured safely. The key is planning early—and ensuring the pregnancy and birth take place in a jurisdiction that supports enforceable surrogacy agreements and clean parentage.

The 2026 Traffic-Light Map

Red Light States: Highest Legal Risk

These states are most likely to derail a surrogacy plan because they’re expressly restrictive, treat agreements as void/unenforceable, or make parentage unusually difficult. 

If one of these states is anywhere in your plan (surrogate residence, delivery location, governing law), it’s a sign to slow down and get state-specific counsel.

Louisiana

Louisiana remains one of the most restrictive frameworks. In plain English, it sharply limits who can use enforceable gestational surrogacy and places major restrictions on compensation and compliance—often creating functional barriers for:

• LGBTQ+ intended parents
• single intended parents
• families using donor eggs/sperm/embryos

Nebraska

Nebraska does not make surrogacy “illegal,” but it does declare surrogacy contracts void and unenforceable. That means surrogacy can occur in practice—without a guarantee that the agreement will be enforced.

Parentage is also typically more procedural in Nebraska. In general terms, pre-birth orders aren’t available; some intended parents may be able to complete hospital acknowledgements with the carrier’s cooperation, and many others must rely on a post-birth adoption pathway.

Indiana

Indiana is often grouped with Nebraska because enforceability can be a major concern—meaning intended parents shouldn’t assume the agreement will provide normal contractual protection if something goes wrong.

Arizona

Arizona is commonly flagged because its statutory framework creates significant risk and uncertainty around surrogacy contracts and parentage planning.

Yellow Light States: Possible, but Technical (Easy to Do Wrong)

Yellow light doesn’t mean “don’t do it.” It means don’t do it casually—especially not with a downloaded contract or “we’ll figure it out later.” The details matter more here, and small mistakes can become expensive detours.

Minnesota (the “Twist”)

Minnesota is one of the trickier states to summarize in 2026: parentage is more structured than it used to be, but how the match is facilitated matters.
If Minnesota is part of your plan, don’t treat it like a casual or DIY state—confirm early that your matching approach is compliant under the August 2025 business-model rules, so you don’t have to redo steps later.

Kentucky (Often Misunderstood)

Kentucky is a good example of why “illegal” is too blunt a word. Some of the biggest issues arise in traditional-surrogacy-like scenarios, while gestational arrangements can be workable but more procedural, depending on family structure and the parentage path.

Green Light States: Clearly Protected Under Modern Law

Some states are simply clearer: their laws spell out how surrogacy agreements work and how parentage is established. A few updates are worth knowing because they’ve materially changed the landscape and prevent a lot of confusion.

• Michigan: modernized and regulated compensated surrogacy effective April 2, 2025.
• Massachusetts: updated parentage framework effective January 1, 2025.
• Idaho: allows paid gestational agreements, but requires court validation of the agreement.

Other protective jurisdictions include California, Colorado, Washington, Texas, Florida, Oregon, and Nevada.

Where Surrogacy Is “Illegal” (or Treated That Way) In 2026

LGBTQ+ and Single-Parent Readiness (Why “Friendly” Depends on Who You Are)

The same state can feel very different depending on family structure—this is the quickest way to see why.

Final Thoughts

If you’re feeling overwhelmed, you’re not alone. “Illegal” headlines can make surrogacy feel scarier than it is.

In 2026, the safest journeys are built on one idea: legal strategy comes first—before a match, before a retainer, and definitely before a contract pulled off the internet.

With the right jurisdiction plan and a clean parentage pathway, many families who start in a “red light” state can still build their family safely—without unnecessary risk.

Fertility & Surrogacy Legal Group, APC

At Fertility & Surrogacy Legal Group, APC, we are passionate about helping families grow through assisted reproduction. Our attorneys provide trusted, compassionate legal guidance to protect your rights and make the family-building process as seamless as possible.