The Trump Administration on Wednesday sued the state of California, saying higher animal welfare standards there are to blame for high egg prices.
The lawsuit, which was filed in the U.S. District Court for the Central District of California, contends that the Golden State has contributed to a historic rise in egg prices by imposing “unnecessary red tape on the production of eggs” that prevent farmers from using agricultural production methods that keep eggs “affordable.”
California’s Proposition 12, which went into effect in 2022, regulates how veal calves, breeding pigs and egg-laying hens are housed, requiring that farmers meet certain standards for freedom of movement, cage-free design and specifying the amount of floor space.
The goal is to prohibit cruel farming practices, and the law applies to all shell or liquid eggs sold within the state, meaning companies outside California that sell eggs in the Golden State must follow the same humane standards.
The Trump Administration lawsuit acknowledges that California’s rules are purportedly to increase the quality and fitness of eggs for human consumption, but the standards “do not advance consumer welfare,” according to the court filing. Rather, the lawsuit argues the standards result in higher prices and reduce surplus.
The lawsuit also argues that it is the prerogative of the federal government alone to regulate the regulate the quality, inspection and packaging of eggs.
A spokesperson for the California Department of Justice said in an email, "Pointing fingers won't change the fact that it is the President's economic policies that have been destructive. We'll see him in court."
California Gov. Gavin Newsom, who is named in the lawsuit, also appeared to dismiss the Trump Administration's allegations. His press office posted on X about the lawsuit that “Trump’s back to his favorite hobby: blaming California for literally everything. Next up: @CAGovernor Gavin Newsom caused the fall of Rome and sent the asteroid that wiped out the dinosaurs!”
Egg prices were prominent issue during the presidential election last year, and candidate Trump promised to bring them down as soon as he was in office. After the inauguration, however, egg prices continued to set new record highs.
As a result, some restaurant chains were also forced to raise their prices on egg dishes, or institute a surcharge.
At the time, an ongoing problem with bird flu, or avian influenza, was in part to blame, according to the American Egg Board, resulting in millions of birds dying or being culled to prevent the spread.
The Wall Street Journal in March reported the Justice Department was investigating whether large producers conspired to raise prices or hold back supply.
Meanwhile, egg prices have declined in recent weeks. Waffle House, for example, earlier this month dropped its surcharge on eggs that it had instituted in February.
UPDATE: This article has been updated to include a response from the California Department of Justice.
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