The Trump administration has filed a lawsuit against California, blaming the state’s egg regulations for the surge in egg prices across the nation.
What Happened: The Trump administration has accused California of contributing to the nationwide increase in egg prices. The administration has filed a lawsuit to challenge California’s egg production laws.
The lawsuit states, “The State of California has contributed to the historic rise in egg prices by imposing unnecessary red tape on the production of eggs
California Governor Gavin Newsom, Attorney General Rob Bonta, and other state officials have been named as defendants in the lawsuit.
The lawsuit, which was filed on Friday, targets three California laws: AB 1437, Proposition 2, and Proposition 12. The administration argues that these laws, which regulate egg production and quality, have led to a decrease in egg production, thereby driving up prices.
The lawsuit also challenges the state’s minimum-space requirements for farm animals, introduced by Proposition 12 in 2018. The administration contends that these regulations fall under the federal government’s jurisdiction, in accordance with a 1970 federal law that establishes standards for eggs and egg products.
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Why It Matters: The surge in egg prices has been a recurring issue, with President Donald Trump attributing the problem to the Biden administration’s handling of inflation during the 2024 election.
However, there was a significant drop in egg prices with prices falling by 61% since January, as reported by Fox Business early in June. This drop in prices coincided with the Trump administration’s commitment in February to invest $1 billion in combating the bird flu epidemic and increasing egg imports.
In April, a Clarify Capital study found that over 30% of Americans stopped buying eggs due to high prices. Analysts noted that weaker demand and fewer new bird flu cases helped bring prices down.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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