LINCOLN, Neb. (DTN) -- The Trump administration challenged California regulations it says are hurting egg production nationally and are in violation of the Constitution, in a federal lawsuit filed on Wednesday. That includes portions of Proposition 12 approved by state voters in 2018.

The Trump administration argues three California sections of law created by California Assembly Bill 1437 in 2010 and Prop 12 have contributed to rising egg prices, do not protect consumer health and safety as claimed by the state and violate the supremacy clause of the Constitution by imposing additional requirements beyond federal standards. Prop 12 was passed as an amendment to AB 1437.

The lawsuit filed in the U.S. District Court for the District of Central California does not challenge all aspects of Prop 12, which also prohibits the sale of pork in the state to only those farmers who follow animal-housing requirements created by state lawmakers.

State law requires the use of cage-free housing systems, including not housing them in a way that prevents laying down, standing up and fully extending their limbs. In addition, they must be allowed to turn around freely.

The requirements apply to all egg-laying hens whose eggs are sold in California, even if hens are raised outside the state. Violations of the law can result in criminal penalties including up to a $1,000 fine and 180 days in county jail.

"The United States is facing a historic cost-of-living crisis," the lawsuit said.

"Overly burdensome and unnecessary regulations have diminished the purchasing power and prosperity of the American worker. As a result, President Trump declared that it shall be the policy of the United States to eliminate the 'crushing regulatory burden' that has 'made necessary goods and services scarce.' The state of California has contributed to the historic rise in egg prices by imposing unnecessary red tape on the production of eggs."

The lawsuit argues California's regulations go too far because, "regardless of the intent or effect of California's various initiatives on egg prices, it is the prerogative of the federal government alone to regulate the quality, inspection and packaging of eggs."

The U.S. Department of Justice said in a news release this week that California's regulations impose "costly requirements" on farmers and have the effect of raising egg prices.

In particular, the DOJ said the state's regulation of eggs stands opposed to the Egg Products Inspection Act. That act sets standards to ensure proper labeling of eggs.

"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," U.S. Attorney General Pam Bondi said in a news release.

On June 30, 2025, the Supreme Court denied the Iowa Pork Producers Association's petition challenging Proposition 12.

The challenge stems from a previous Supreme Court ruling on the case, which determined California's law does not violate the Commerce Clause.

However, five of the nine justices in that case said Prop 12 -- which also enacts a pork sales ban on farms across the country that don't follow the state's animal-housing regulations -- could "impose a substantial burden on interstate commerce" under what is known as the Pike balancing test.

That test is used by the Supreme Court to determine whether state laws are unconstitutional because they violate interstate commerce.

The Supreme Court ruled against the National Pork Producers Council in 2023 in its challenge to Prop 12. In that case, the plaintiff did not make a discrimination claim.

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social media platform X @DTNeeley

(c) Copyright 2025 DTN, LLC. All rights reserved.