The Trump administration launched a lawsuit last year, attempting to challenge California’s strict egg production law in an effort to lower egg prices. On March 18, the lawsuit was dismissed by a judge in Los Angeles, who ruled that the federal government failed to prove it suffered damages due to California’s law.
Federal Judge Mark Scarsi, appointed by Trump during his first term, dismissed the lawsuit brought by the Department of Justice (DOJ) but gave them two weeks to submit an amended complaint to prove harm. The judge stated, “Rejecting the plaintiff’s sovereign damage theory aligns with reasonable legal principles.”
The DOJ alleged that California’s stringent egg law prohibits farmers from using common agricultural methods that help maintain reasonable egg prices, thereby harming working-class families across America. However, Scarsi believed the federal government did not clarify how this California law specifically caused damage to the federal government itself.
Scarsi also stated that allowing the federal government to claim sovereign damage for every state law would lead to “the potential abuse of federal courts for political purposes.”
The DOJ filed the lawsuit in Los Angeles federal court in July 2025, accusing California’s voter-approved Proposition 12 of violating the federal Commerce Clause and conflicting with the federal Egg Products Inspection Act, which takes precedence as federal law.
Proposition 12, passed in 2018 with a 63% approval rate, set stricter standards for the housing conditions of egg-laying chickens. The Trump administration argued that this regulation increased egg prices nationwide. Then Attorney General Pam Bondi stated, “Americans are bearing the consequences of liberal policies, resulting in significant price increases for everyday items like eggs.”
The DOJ did not respond to requests for comments on the dismissal of the case or whether they would submit an amended complaint.
The Farm Animal Confinement Initiative, also known as Proposition 12, prohibits the confinement of calves, breeding pigs, and egg-laying hens for meat production. The law also mandates that egg-laying hens cannot be caged and requires farmers to provide larger enclosures for other animals, or else their eggs or meat cannot be marketed for sale.
California’s Attorney General Rob Bonta stated that the court’s ruling demonstrates that the Trump administration lacked a valid reason for the lawsuit.
In seeking the dismissal of this case, California garnered support from multiple animal welfare organizations.
In July 2025, the U.S. Supreme Court declined to hear a challenge from the Iowa Pork Producers Association against California’s Proposition 12. The association filed a lawsuit against California, claiming that the law harmed the interests of American farmers and consumers, potentially causing disruptions in the supply chain.
At that time, the justices referred the case back to the Sixth Circuit Court of Appeals without specifying the reasons for the decision.