The Energy and Commerce Committee recently announced on X that California's regulatory policies and business environment are negatively impacting the U.S. economy.
California has become a symbol of significant regulatory and cost burdens, drawing criticism from national business leaders. The Executive Chairman of Bed Bath & Beyond said that the company will not open or operate physical retail stores in California, arguing that the state has become one of the "most overregulated, expensive, and risky environments for businesses in America," with high taxes, fees, and wages affecting operations. This statement highlights widespread concerns that stringent regulatory policies may deter large chains and make survival challenging for small businesses.
According to Fox Business, Bed Bath & Beyond plans to relaunch 300 smaller-format "neighborhood" stores across the U.S., but has explicitly excluded California from this expansion plan due to the state's prohibitive business environment. The exclusion reflects an economic calculus: California’s regulatory framework, combined with elevated labor and operational costs, undermines the profitability and logistical viability of maintaining physical storefronts. The company is instead focusing on serving California customers through expedited e-commerce and delivery options, such as 24- to 48-hour and same-day service models, to avoid high in-store costs.
As reported by the New York Post, Marcus Lemonis said that California’s policies—especially high minimum wages (reported as high as $20/hour in fast food sectors), strict regulatory demands, and steep operational costs—make long-term, in-person retail operations unsustainable. These factors force businesses to choose between raising prices or sacrificing employee support and long-term viability. The Post also noted that this decision comes amid Bed Bath & Beyond’s attempt to recover from bankruptcy and reinvent its model following the closure of most physical stores two years ago.
The House Committee on Energy and Commerce is one of the oldest and most influential standing committees in the U.S. House of Representatives. Established in 1795, it is currently chaired by Congressman Brett Guthrie (R-KY) since January 3, 2025. It holds broad jurisdiction over matters including energy, healthcare, telecommunications, consumer protection, air quality, and interstate commerce—making it central to legislation affecting the economic and regulatory landscape. The committee's extensive oversight powers enable it to influence policy trends significantly impacting both large corporations and small businesses nationwide.
