The U.S. Justice Department has filed a lawsuit against the State of California, Governor Gavin Newsom, Attorney General Rob Bonta, and other state officials, challenging California laws that are alleged to unconstitutionally drive up national egg prices.
According to the Justice Department, these California laws impose costly requirements on farmers, prohibiting them from using commonly accepted agricultural methods that previously helped keep eggs affordable, thereby increasing egg prices for American consumers. The Department argues these state laws are contrary to the federal Egg Products Inspection Act (EPIA), which sets standards for egg labeling and packaging and preempts additional state regulatory hurdles.
The complaint details that California’s Proposition 2 (2008) and AB1437 (2010) imposed housing requirements on egg-laying hens, restricting the use of housing that prevents them from lying down, standing up, fully extending limbs, and turning around freely for most of the day. AB1437 further prohibited the sale of eggs in California from hens not meeting these standards, regardless of where the eggs were produced. These laws reportedly led to a significant decrease in California’s egg production and an approximate 20% increase in the average price per dozen eggs within two years of their effective date, resulting in a consumer welfare loss, according to the complaint.
Proposition 12, approved by California voters in 2018, amended and added to these existing egg standards and animal housing requirements. While Proposition 12’s stated purpose was to enhance animal welfare and egg quality, and reduce the risk of foodborne illness, the California Department of Food and Agriculture indicated in its regulatory analysis that the animal confinement space allowances are not based on scientific literature or accepted standards to reduce human foodborne illness.
Proposition 12 requires egg-laying hens to be able to fully extend all limbs and turn in a complete circle without impediment, and mandates a minimum of 1 square foot of usable floorspace per hen in multi-tiered aviaries and partially slatted systems, and 1.5 square feet in single-level floor systems. It also prohibits confining hens in anything other than a “cage-free housing system,” which requires hens to be free to roam unrestricted and provided with enrichments like scratch areas, perches, nest boxes, and dust bathing areas. These requirements apply to eggs sold in California, even if produced elsewhere.
The lawsuit asserts that California’s laws impose standards of quality and condition on eggs that are “in addition to or different from” federal standards under EPIA, thereby violating the Supremacy Clause. The Justice Department is seeking a judgment to invalidate and permanently enjoin the enforcement of these California laws.
Additional Reading
U.S. v. California Complaint (July 9, 2025)
Justice Department Challenges Unconstitutional California Laws Driving Up National Egg Prices, Office of Public Affairs, U.S. Department of Justice (July 9, 2025)
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