The Department of Justice has filed a lawsuit against California and its leadership, alleging that state policies have affected egg prices in violation of the Constitution’s Supremacy Clause.
According to the filing, 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” by imposing a “combination of voter initiatives, legislative enactments, and regulations.”
The complaint specifically targets AB 1437, Proposition 2, and Proposition 12. AB 1437 and Proposition 2 create regulatory requirements that the DOJ alleges negatively affect egg production and, therefore, increase prices. Proposition 12 pertains to animal confinement.
“Americans across the country have suffered the consequences of liberal policies causing massive inflation for everyday items like eggs,” said Attorney General Pam Bondi. “Under President Trump’s leadership, we will use the full extent of federal law to ensure that American families are free from oppressive regulatory burdens and restore American prosperity.”
The filing comes in support of President Trump’s directive calling for federal agencies to “deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker.”
This included “pursuing appropriate actions to: lower the cost of housing and expand housing supply; eliminate unnecessary administrative expenses and rent-seeking practices that increase healthcare costs; eliminate counterproductive requirements that raise the costs of home appliances; create employment opportunities for American workers, including drawing discouraged workers into the labor force; and eliminate harmful, coercive ‘climate’ policies that increase the costs of food and fuel,” the order said.
Governor Gavin Newsom’s office criticized the lawsuit, claiming Trump is “back to his favorite hobby: blaming California for literally everything.”
Cal-Maine Foods acknowledged in a financial report in April that it was under investigation by the Department of Justice’s Antitrust Division over increased egg prices. The egg producer, the largest in the United States, revealed that it earned $508 million, a 245% increase from March of last year. Net sales were $1.4 billion, which the company said was “primarily driven by an increase in the net average selling price of shell eggs and also by higher volumes. The higher market prices are a direct result of the reduced supply of shell eggs across the industry due to HPAI during a period of peak seasonal demand for eggs and egg products.”
