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Schweitzer Engineering Laboratories (SEL), a global leader in power system protection, automation, and control solutions, has released the 2026 SEL Index of Freedom, an annual evaluation of the business climate across all 50 U.S. states.
Now in its fifth year, the Index ranks states across three core pillars: government efficiency, regulatory freedom and energy resiliency. Together, these factors help create conditions that support innovation, investment and long-term economic growth.
“By wisely limiting the role of the federal government to specific, enumerated powers and entrusting all else to the states, our Founding Fathers created what Supreme Court Justice Louis Brandeis later famously described as ‘laboratories of democracy,’ where new ideas and policies can be tested without risk to the entire nation,” wrote SEL Founder Dr. Edmund O. Schweitzer, III, in his introduction to the report. “Over time, the effects of good choices in each state become visible in economic growth, investment, entrepreneurship and job creation. And the economic measures also reveal some choices that maybe aren’t so good.”
This year, the following states stood out for their strong performance in strengthening energy resilience, fostering efficient governance and creating regulatory environments that support business development and growth.
Top five states:
- South Dakota
- Utah
- Wyoming
- North Dakota
- Idaho
The 2026 Index builds on previous editions by providing additional insight into how state-level policy decisions influence economic opportunity and competitiveness. It also highlights the increasing importance of trade and global connectivity, which play a vital role in supporting jobs, innovation and resilient supply chains.
The Index draws from a broad range of publicly available data sources, including the U.S. Census Bureau, Bureau of Labor Statistics, Energy Information Administration and leading policy research organizations combined with the experience SEL has gained through operating in dozens of states.
The report is designed to serve as a practical resource for:
- Business leaders evaluating expansion and investment opportunities.
- Policymakers seeking to improve competitiveness of their state.
- Communities working to attract jobs and strengthen local economies.
