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U.S. Department of Justice sues California over egg regulationsU.S. Department of Justice sues California over egg regulations
Lawsuit claims “cage-free” requirements for hens are driving up prices nationwide
Mark Hamstra
July 10, 2025
4 Min Read
The lawsuit alleges that the California laws should be invalidated because they are preempted by the federal Egg Products Inspection Act, which sets standards to ensure eggs and egg products are properly labeled and packaged.Getty Images
The U.S. Department of Justice on Wednesday filed a lawsuit against the state of California, Calif. Gov. Gavin Newsom, and other state officials, alleging that state regulations on egg production are driving up the cost of eggs nationwide.
In a filing with the U.S. District Court in Los Angeles, the DOJ targeted California’s Proposition 12, a voter-driven initiative that took effect in 2022 requiring egg farmers to provide a minimum amount of space for egg-laying hens—essentially a “cage-free” environment. That measure expanded upon two previous laws that were also targeted in the lawsuit, Proposition 2 and AB1437, which set animal welfare standards for chickens and regulate egg quality, respectively.
Prop 12 applies to all shell eggs and liquid egg products sold in California.
“The laws and regulations challenged by the complaint impose costly requirements on farmers that have the effect of raising egg prices for American consumers by prohibiting farmers across the country from using commonly accepted agricultural methods that helped keep eggs affordable,” the DOJ said.
The lawsuit alleges that the California laws should be invalidated because they are preempted by the federal Egg Products Inspection Act, which sets standards to ensure eggs and egg products are properly labeled and packaged. The DOJ filing cited the Supremacy Clause of the U.S. Constitution, which maintains that federal laws preempt state laws under certain circumstances. In this case, the lawsuit claims that Congress expressly preempted state and local laws that expand upon or differ from the EPIA.
“Pointing fingers won’t change the fact that it is [President Trump’s] economic policies that have been destructive.. We’ll see him in court,” a spokesperson for the California Department of Justice told Supermarket News.
What is causing increased egg prices?
USDA officials have cited outbreaks of Avian Flu for decimating flocks of egg-laying hens, causing widespread egg shortages and driving prices up significantly. The Consumer Price Index for May showed that egg prices were up 41.5% over year-ago levels, although prices declined slightly on a month-to-month basis.
Earlier this year, the DOJ also said it was investigating the nation’s egg producers to determine if antitrust violations were contributing to the surge in egg prices that have plagued consumers for the past few years.
Animal rights advocate: Lawsuit is a “gift to factory farming”
Wayne Pacelle, president of Animal Wellness Action, said the lawsuit is “an attack on humane farming.”
“It’s a gift to factory farms outside the U.S.,” he said. “It would allow cheap, caged eggs from Mexico to flood our markets while undermining the rights of states and the will of the voters.”
Pacelle was a “chief architect” of California’s Prop 2 and Prop 12, according to AWA.
The group noted that nearly 45% of all eggs in the U.S. are now produced by hens in cage-free environments, and that such systems are widely supported by major retailers.
Pro-farming group: “Nullify onerous California regulations”
The Center for the Environment and Welfare, a pro-farming group, has been campaigning against Prop 12, claiming it is driving up prices for both eggs and pork and that it was pushed by “radical animal rights activists who don’t believe people should eat eggs or pork at all.”
Prop 12 also enacted stricter housing requirements for pigs, mandating that they have at least 24 square feet of usable floor space per pig, among other requirements.
“It is great to see the Trump administration taking decisive action to protect the country from California’s overreaching policies, but Americans facing high food costs cannot afford to wait for years of court appeals,” said Jack Hubbard, executive director of CEW. “Congress could—and should—pass legislation tomorrow to get us there sooner.”
The CEW is airing a national television commercial this week urging Congress to take action. The group cited research showing that 60% of California voters surveyed said they would support changes to Prop 12 to reduce pork or egg prices.
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