Based Coalition of 17 States Sues Commiefornia Over Insane New Plastic Tax and Unofficial Bureaucracy Cartel
Sacramento’s brilliant new scheme to let a sketchy private group tax out-of-state businesses gets slapped with a massive federal lawsuit.

California’s latest nanny-state masterwork, signed by Governor Gavin Newsom back in 2022, finally crawled into effect in May 2026, immediately causing absolute chaos. This sweeping anti-plastic law is Sacramento’s latest attempt to force the entire country to bend the knee to its radical environmental agenda. But just weeks after taking hold, the regulatory circus has run face-first into reality, sparking massive outrage from normal businesses and a huge multi-state legal smackdown.
On Monday, a based coalition of 17 states officially filed a federal lawsuit to block this bureaucratic overreach. The states are pointing out the obvious: California has no constitutional right to dictate how out-of-state manufacturers package their goods just to do business in the Golden State. By trying to enforce these bizarre rules nationwide, California is basically waging war on interstate commerce, threatening to spike costs for businesses and families who don’t even live in the state.
The law itself is a textbook case of government-mandated absurdity. It demands that plastic and packaging companies drastically slash their use of single-use plastics and ensure that by 2032, literally 100% of packaging is either recyclable or compostable. The big brains in Sacramento actually believe they can force companies to completely redesign every bottle, box, and wrapper on the market by passing a law, completely ignoring how the real economy works.
But wait, it gets even worse. Along with these impossible manufacturing standards, the law slaps companies with a whopping $5 billion penalty. The state is demanding that packaging producers pay $5 billion to "remedy" the alleged harms of plastic pollution. It is a massive shake-down disguised as environmental protection, and everyone knows exactly who is going to end up paying that multi-billion dollar bill: everyday consumers.
The absolute shadiest part of the law is the requirement for businesses to register and pay fees to a private, state-appointed entity called the Circular Action Alliance. Yes, you read that right. California is literally outsourcing its regulatory and financial enforcement to an unelected, private third-party group. It is a total backroom cartel setup that lets a private alliance collect fees from out-of-state companies without any real public oversight.
Eric Hoplin, the president and CEO of the national association of wholesalers, did not mince words when his group joined the lawsuit. Hoplin called out the blatant unconstitutionality of the setup, stating that no state should limit interstate commerce, let alone delegate the power to set and collect taxes to a third party outside of the scope of public scrutiny. He is absolutely right—handing taxing power to a private shadow board is a wild escalation of state-level tyranny.


