CHICAGO, August 15, 2025 - The Trump Administration is embarking on a campaign to roll back state laws perceived as dampening business beyond a jurisdiction’s borders, with a measure blasted by the food-away-from-home industry cited as a prime example.
The initiative is believed to be unprecedented in its scope. Although the federal government has often challenged a state’s claim to set business regulations that could have a ripple effect on trade elsewhere, those situations have usually arisen on an ad hoc basis. The effort announced today by the U.S. Department of Justice aims to unwind state legislation with interstate implications on a systematic basis.
Along with the National Economic Council, a White House advisory group, Justice is asking the public to identify any state law that’s a drag on business nationally or regionally. It is also soliciting suggestions on how to accomplish the aims of those measures without affecting businesses in neighboring states.
The federal agencies cited the example of a new California regulation aimed at ensuring humane living conditions for egg-laying hens. The rules specify that only eggs from chickens raised with enough space to turn around inside their cages can be sold within the state, regardless of where the birds are located. In effect, a chicken ranch in Idaho has to meet the space requirement if it wants to sell its product within California, the nation’s largest market for eggs and many other FAFH staples.
At the time the regulation was drafted, few growers were able to meet the new cage-space standard. Agricultural groups said a changeover would be a significant expense and would reduce the number of chickens and cages a farm could house.
Along with the effects of avian flu, the California regulations were cited as a reason why egg prices soared, putting a squeeze on buyers of all sorts.
New space requirements have also been set by California for hog and cattle farmers who hope to sell their pork and veal within the state.
A similar law was passed by referendum in Massachusetts, with a 78% approval rate. Some opponents refer to it by a derogatory name, the Happy Pig Law.
The Trump Administration filed a lawsuit last month to halt enforcement and overturn California’s animal-welfare law.
The initiative announced this morning would greatly strengthen the administration’s hand in reversing other state laws that have an effect beyond the enacting jurisdiction’s borders. Justice described the initiative as a new component of Trump’s plan to rescue U.S. business from what the White House characterizes as a “crushing regulatory burden” that dampens commerce and innovation.
It argues that regulations like California’s new poultry rules are an incursion on the authority granted exclusively to the federal government by the U.S. Constitution to regulate interstate commerce.
The assertion is almost certain to be challenged in court.
The Justice Department’s announcement can be found here.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.