The Trump administration is taking aim at state laws it says are driving up costs for Americans everywhere, launching a sweeping effort to identify regulations that burden interstate commerce.
In a joint announcement, the Justice Department and National Economic Council revealed they’re partnering to tackle what they describe as state-level regulations that “significantly and adversely affect the national economy.” The initiative invites public comments through September 15 on which state laws create unnecessary economic burdens across state lines — and how the federal government might address them.
“From his first day in office, President Trump and his Administration have prioritized eliminating the ‘crushing regulatory burden’ that has made necessary goods and services scarce,” the Justice Department stated in its announcement. The administration argues these deregulatory efforts will “boost the American economy, relieve Americans of undue burdens, and make America affordable and energy dominant again.”
Regulatory Rollback Continues
The initiative builds on President Trump’s broader deregulation agenda. In January, he signed Executive Order 14192, which declared it federal policy to “alleviate unnecessary regulatory burdens placed on the American people.” Less than a month later, Trump followed with Executive Order 14219, directing federal agencies to review regulations that “impose undue burdens on small businesses and impede private enterprise.”
But why focus on state laws rather than just federal regulations? The administration points to what it calls “Federalism by projection” — when one state’s rules effectively force their standards onto businesses nationwide.
California’s egg and poultry production laws have become Exhibit A in the administration’s case. Last month, the Justice Department sued California, Governor Gavin Newsom, and Attorney General Rob Bonta over requirements the DOJ claims are “raising prices for American consumers in and outside of California.”
The lawsuit underscores the administration’s argument that “State-level practices can drive up nationwide costs and undermine American safety” by effectively forcing producers across the country to comply with one state’s standards to maintain access to major markets.
Public Input Sought
What exactly does the administration want to hear from the public? The agencies are asking for comments on state laws that burden interstate commerce, whether federal law might preempt those regulations, and potential federal solutions to address these issues.
The comment window is relatively brief — just 30 days — with all submissions due by September 15 on Regulations.gov under docket number DOJ-OLP-2025-0169. The Justice Department indicates that all comments will be posted publicly.
Critics might wonder: Is this really about reducing costs for consumers, or is it about overriding state authority? The tension between federalism and interstate commerce has always been complex, and this initiative puts that tension front and center.
The administration has cast a wide net for input, specifically inviting comments from “consumers, consumer advocates, small businesses, employers, trade groups, industry analysts, States, and other entities” affected by state regulations with interstate economic impacts.
For businesses operating across multiple states, the patchwork of different state regulations has long been a complaint. But states have traditionally defended their right to set higher standards for consumer protection, environmental safeguards, or other priorities important to their voters.
As the initiative moves forward, the fundamental question remains whether the administration can strike a balance between its deregulatory agenda and the traditional authority of states to set their own rules — or whether this effort will spark yet another round of federal-state legal battles.
