Policy Watch Newsletter, June 2026

Next Round Already in the Works
The Trump administration’s latest tariff — a global levy of 10% linked to products allegedly produced by forced labor in other countries — will continue while the U.S. Court of Appeals for the Federal Circuit hears arguments. On June 11th, the Court issued a stay of a lower court ruling which had held that the tariffs were illegal. The Court of Appeals ruled that the tariffs are “likely legal” and can continue to be collected while the appeal proceeds. The stay does not rule out the possibility of refunds if the final ruling is not in favor of the White House.

Either way, the current global surcharge expires on July 24. The administration has proposed new two-tiered tariffs from 10%-12% to replace it. The new tariffs would be structured on whether a country is effectively prohibiting the use of forced labor in the creation of its products.

DOJ Contests Refunds
With $166 billion in total possible IEEPA tariff refunds at stake, the White House is using legal maneuvers to delay or prevent some funds from being returned to importers. A May 26 report estimates $85 billion in refund requests have been processed — nearly $21 billion already refunded — leaving approximately $81 billion unprocessed.

On June 2, the Department of Justice filed an appeal of the April court order that mandated IEEPA tariff refunds. This appeal argues that the Court of International Trade exceeded its authority by offering relief to “finally liquidated entries”. This would mean the right to seek refunds has expired for importers who did not challenge the tariffs within the 180-day window after the tariff was liquidated, or who have not brought a lawsuit.

FDA Okays New Sunscreen Ingredient
On June 9th, the FDA approved the use of bemotrizinol in sunscreen. According to the Health Secretary, Robert F. Kennedy Jr., this is the first new ingredient for sunscreen in 20 years. Bemotrizinol is widely used in European skincare and is considered to be a healthier option than current active ingredients because it can block ultraviolet rays without being absorbed into the bloodstream.

Phthalates Request for Information Closes
The FDA has evaluated eight phthalates currently used to create plastic food containers and has asked for input on whether they can be grouped together for a risk assessment. This is part of the agency’s post-market safety assessment of chemicals in the U.S. food supply. The request for information closed on June 26. The chemicals being considered are listed here.

Phthalates are not considered to be forever chemicals (PFAS) as phthalates break down relatively quickly. However, their prevalence in everyday life has led to concerns as phthalates are proven endocrine disruptors which could interfere with hormones and reproduction.

House Slashes WIC Program
The Agriculture Appropriations Bill, which passed the House on June 4, heads to the Senate where heated debate is expected over $200 million in benefit reductions to the WIC Program (the Special Supplemental Nutrition Program for Women, Infants, and Children).

Republicans say participation in the program has dropped warranting the cuts. Democrats contend the data used to justify that argument was based on a period when the federal government was shut down and is therefore misleading.

The Agriculture Appropriations bill is passed annually and funds the USDA and programs included in the Farm Bill.

Requires All Gluten Grains Highlighted
A change to gluten labeling is being considered by the House. Rep. Emanuel Cleaver II (D-MO) and Rep. Betty McCollum (D-MN) proposed the Celiac Safety Act bill on May 29 which would mandate that any “gluten-containing grains”, such as rye and barley, be listed as major allergens on food, drug, and cosmetic packaging. Currently, only wheat is classified as a major food allergen although gluten can be present in other grains and cause celiac reactions. If passed, the law would provide an 18-month window for food manufacturers to comply with new labeling requirements.

Launches Grassroots Campaign Against UPFS
A psychology professor at the University of Michigan seeks to organize consumers to advocate for healthier foods in the face of inaction at the federal level. Ashley Gearhardt published a survey in the American Journal of Public Health calling for action with regard to food testing, labeling, and marketing restrictions on foods considered ultra-processed (UPFs).

Gearhardt, along with other researchers, has launched a public awareness campaign called “Fed UP!” The effort establishes a website to educate consumers to understand which foods are UPF’s and how to advocate for healthier products. The campaign aims to instruct consumers on how to press for UPF restrictions including on advertising, warning labels, and ingredients.

Kroger Settles For $1.25m
Kroger has settled with the state of California in a lawsuit challenging calorie counts in Kroger-brand Carbmaster bread. The lawsuit alleged that the stated calories were off by as much as 50%. Kroger will pay $1.25 million for misrepresenting the calorie counts on labels and in advertising — in some cases six months after an FDA investigation found the counts incorrect.

The Carbmaster Hamburger Buns contained twice as many calories as listed on the label and the bread varieties — White, Wheat, and Multiseed — were also nearly double what was listed on the package. The lawsuit was brought by the District Attorneys of Ventura, Riverside, and Santa Barbara on May 29, 2024.

Costco’s Pasta in Hot Water
Costco’s Kirkland Signature Five Cheese Tortelloni is the subject of a lawsuit alleging that the “No Preservatives” label was misleading. Filed April 29 in the U.S. District Court for the Central District of California, the suit alleges Costco falsely labeled the product as “no preservatives” when it includes manufactured citric acid, which is a preservative. The plaintiff is seeking to expand the complaint into a nationwide class action lawsuit.

Costco is also facing a similar challenge in federal court in San Diego over its “No Preservatives” label on Seasoned Rotisserie Chicken. This month, Costco has filed a motion to dismiss arguing that the ingredient in question — carrageenan — is listed by the FDA as a stabilizer or thickener, not as a preservative.

Lawmakers Seek to Ban Untested Ingredients
New York’s Legislature has passed the Food Safety and Chemical Disclosure Act which would outlaw the sale of food containing any ingredient that does not have a report attesting to its safety on file with the New York Commissioner of Agriculture and Markets.

This measure is a direct challenge to the much criticized Generally Recognized As Safe Rule enacted at the federal level. The legislation now heads to the Governor's office.

Legislation Seeks to Mandate Recipe Change
Lawmakers in NY have passed a bill outlawing the use of bromated flour, a pervasive ingredient in New York’s popular pizzas and bagels, saying the ingredient is a likely carcinogen and is already banned in many countries. The move follows action by California, which has adopted a ban on bromated flour which becomes effective next year.

An estimated 80% of pizza and bagel shops use this ingredient and will have to reformulate their recipes if bromated flour is banned. If signed into law by the NY governor, restaurants would have a grace period to remove the additive.

FMI Defends Electronic Shelf Tags
New York passed the One Fair Price Act on June 4 which, if signed into law, would make NY the third state to ban personalized pricing, which is the use of a consumers’ personal data to set prices or discounts. Maryland and Connecticut have restrictions on surveillance pricing while several other states are considering similar bans.

Meanwhile, the Food Industry Association (FMI) has published a blog entry advocating on behalf of the use of Electronic Shelf Labels (ESLs). FMI says electronic tags ensure accurate pricing, compensate for labor shortages, and are good for the environment. The organization emphasizes that ESLs do not track customers and denies that retailers will be able to use them for changing prices based on individual customers or temporary demand fluctuations.

Illinois Seeks Allergen Labels
The Illinois Legislature is asking for ingredient labeling to be required on each package of diapers sold in the state. The bill, passed on May 19 and now heading to the governor’s office, aims to protect consumers from potential allergens. Manufacturers would have up to a year to change labeling. Violations would incur fines.

RI Poised to Make Checkout History
The state Legislature of Rhode Island has passed a bill mandating a live checkout station for every three self-checkout machines. The legislation has been touted as a win for workers whose jobs will be protected as well as for consumers who appreciate help in the checkout lane.

Critics say it is unfair to implement this ratio only in grocery stores and say customers prefer the speed of self-checkout options. In Southern California, the Costa Mesa City has implemented a similar ordinance although Rhode Island’s law would be the first state-wide change. It now heads to the Governor for approval.

Meanwhile, Connecticut and Massachusetts lawmakers are debating a ratio of one employee-manned station for every two self-checkouts and capping grocery stores from operating more than eight self-checkouts at a time.

Vermont Mandates Baby Food Testing
As of January 2027, baby food in Vermont will be required to be tested once a month for toxic heavy metals.  A new law also mandates that those tests will be transparent to consumers, and that any products exceeding FDA limits will be prohibited from sale.

There is no federal mandate for testing and federal guidelines are non-binding. The FDA conducts random spot testing on infant formula and food products nationwide.

Alaska Says ‘No’ to Artificial Colors in School Meals
Alaska has joined the ranks of states banning petroleum-based dyes in school menus. The measure bans foods and beverages using seven FDA-certified artificial food colorings starting January 1, 2028. Eight other states have successfully passed similar restrictions.