Judge dismisses Trump administration lawsuit over California egg prices

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The Hill's Headlines — March 19, 2026

The Hill's Headlines — March 19, 2026

A federal judge on Wednesday dismissed a lawsuit brought by the Trump administration against California last summer over the cost of eggs.

U.S. District Judge Marc C. Scarsi, a Trump appointee, found that the federal government lacked standing to challenge California laws and regulations governing the production, sale and shipment of eggs.

Scarsi did not rule on the merits of the case, writing in the Wednesday order that “unlike with the chickens and eggs at issue here, there is no question that an analysis of standing must come first.”

The Hill has reached out to California Gov. Gavin Newsom’s (D) office for comment.

The Justice Department (DOJ) sued California last July over what it called “unnecessary red tape” around egg production, citing three state laws it claimed were contributing to higher egg prices.

One of the targets of the suit was a 2018 statewide ballot measure that established new minimum-space requirements for housing egg-laying hens and other farm animals, including veal calves and breeding pigs, and prohibited farmers from selling products from animals housed in a “cruel manner.”

That measure expanded on Proposition 2, a 2008 statewide ballot measure that created welfare mandates for farm animals but did not specify size requirements. The administration also challenged a 2010 law that regulated the quality of eggs sold for human consumption.

“Through a combination of voter initiatives, legislative enactments, and regulations, 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,” DOJ attorneys wrote in the initial complaint.

The Trump administration argued that California’s regulations should be invalidated because they were preempted by the federal Egg Production Inspection Act (EPIA). The 1970 law required continuous inspection of liquid, frozen and dried egg products to ensure they are properly packaged and labeled for human consumption.

In his 11-page Wednesday ruling, Scarsi ruled that the federal government failed to provide enough evidence to support the argument that it had a “personal stake” in the matter.

“Because the United States ‘is not the target of the challenged government action,’ as it does not allege it is a participant in the egg marketplace to which the subject California laws and regulations apply, the federal government’s ability to bring suit is ‘substantially more difficult to establish,’” Scarsi wrote.

The judge’s order gives the DOJ two weeks to file an amended complaint.. The DOJ did not immediately respond to questions about whether — and how — it planned to move forward with the case.

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