Feds sue California over price of eggs

LOS ANGELES (CN) — For the second time in a day, the Trump administration sued California on Wednesday — this time blaming the state’s space requirements for chickens as the reason for the high price of eggs across the country.

In a complaint filed in federal court in Los Angeles, the U.S. Justice Department claims a 2018 California voter-approved ballot initiative, Proposition 12, is preempted by the federal Egg Products Inspection Act, which regulates the quality, inspection, and packaging of eggs.

California voters approved the measure, the Prevention of Cruelty to Farm Animals Act, by 63% to 32%. The law sets minimum space standards for for egg-laying hens, breeding pigs, and calves raised for veal. It also makes it illegal in California to sell eggs and meat from producers that don’t adhere to these standards, no matter whether they are located in the state or elsewhere in the country.

“California has contributed to the historic rise in egg prices by imposing unnecessary red tape on the production of eggs,” the Justice Department claims. “Through a combination of voter initiatives, legislative enactments and regulations, California has effectively prevented farmers across the country from using a number of agricultural production methods which were in widespread use — and which helped keep eggs affordable.”

The Justice Department cites an article in the Journal of Purdue Undergraduate Research, a student-run publication that highlights the research projects of the university’s undergraduates, to support its contention that California’s Proposition 12 alone has “caused a significant increase” in egg prices “and therefore led to a sizeable reduction in consumer surplus.”

And while Proposition 12’s proponents purport to be concerned with the welfare of egg-laying hens, the Justice Department says California code underscores an intent to regulate the quality and condition of eggs themselves.

This is expressly preempted by federal law, the Justice Department says.

“Pointing fingers won’t change the fact that it is the president’s economic policies that have been destructive,” a spokesperson for California Attorney General Rob Bonta said in response to the lawsuit. “We’ll see him in court.”

U.S. egg prices have started to come down from record highs in recent months, reportedly in part because fewer bird flu outbreaks at commercial poultry operations helped to stabilize supply.

The U.S. Department of Agriculture said in June that, as a result of its strategy to combat to Highly Pathogenic Avian Influenza, or HPAI, wholesale egg prices had dropped 64%, with retail prices falling 27% from their peak this year.

The lawsuit over California’s farm animal regulations comes on the same day as the Justice Department sued the Golden State for allowing transgender girls to participate on female high school sports teams and further underscores the deep animosity between the administration and the more progressive state.

The state told voters at time that Proposition 12 would likely raise prices for eggs, pork, and veal because the measure would require many farmers to remodel or build new housing for animals — such as cage-free housing for hens — and the increased costs would be passed on to consumers.

The California Department of Food and Agriculture also cautioned voters that it could take several years for enough farmers in California and other states to change their housing systems to meet the measure’s requirements, which could constrain supply and lead to an increase in prices.

However, according to animal welfare advocates, the increase in egg prices earlier this year had nothing to do with any “regulatory burden” but was caused by outbreaks of avian flu.

“California has prohibited the sale of cruelly produced eggs for more than a decade—a law that has been upheld by courts at every level, including the Supreme Court," Sara Amundson, president of Humane World Action Fund, said in a statement. “Blaming 2025 egg prices on these established animal welfare standards shows that this case is about pure politics, not constitutional law.”

The Justice Department wants a judge to find California’s regulations are preempted by federal law and therefore invalid and unenforceable.

Follow @edpettersson