Why Does EPR Raise Costs for American Families?
Key Takeaways
EPR raises costs for American families because it shifts recycling expenses onto manufacturers. Global studies show when there are new regulatory fees, prices for packaged items increase.
EPR works like a consumption tax. It ultimately increases the overall cost of groceries, household goods and paper products.
As a result, Americans will feel the impact when shopping at the grocery store and for everyday necessities. EPR will increase costs without improving paper recycling.
What is Extended Producer Responsibility?
Recycling and waste collection in the United States is complicated. Most programs are run by local governments, often with help from private companies.
Extended Producer Responsibility requires companies to pay for collecting, recycling and disposing of their products. That’s true even for materials like paper that are already widely and successfully recycled today.
But EPR ultimately increases costs for American families without improving paper recycling.
How Does EPR Drive Up Costs for Essential Products?
Paper and paper packaging are essential to daily life. Americans often buy or use:
- Shipping boxes
- Cereal boxes
- Paper pharmacy bags
- Tissue boxes
- Toothpaste boxes
- Over‑the‑counter medicine boxes
- Printer paper
Under EPR programs, paper and paper packaging manufacturers are charged high fees to cover the costs for collection, recycling and disposal. They’re charged fees even though paper is highly and widely recycled in the U.S. But these added fees don’t disappear.
EPR Acts Like a Hidden Tax
EPR Acts Like a Hidden Tax
Global studies show that when new regulatory fees are implemented, the prices of packaged essentials go up.
Because EPR applies to so many common products, it works a lot like a consumption tax. It increases the cost of items Americans buy every day, including groceries and household essentials.
That means American families will ultimately feel the pinch when buying essentials like groceries or shopping online.
By the Numbers: How EPR Raises Prices
States across the U.S. are considering EPR legislation or are implementing EPR programs. These are the facts:
Higher Costs for Families in New York
A study found that proposed EPR laws in New York could raise the monthly cost of everyday items like cereal and pasta by $38–$61 for a family of 4. That’s up to $732 in added costs annually. EPR legislation is still under consideration in New York.
Higher Prices at the Grocery Store
The 2026 EPR fees in Oregon for paper products range from $160/ton for cardboard to as much as $1,020/ton for paper laminates. Paper laminates are typically used for food packaging. These fees act like a hidden tax, called a consumption tax, on essentials such as groceries and household goods. The consumption tax hits working families the hardest.
California Restarted Over Costs
In 2025, Governor Newsom directed CalRecycle to restart the regulations for SB 54 (2022). A state analysis showed the initial proposed rules could have cost businesses over $8,000 a year and Californian families about $330 a year. Total implementation costs would have been $36.6 billion. California is currently reworking the proposed regulations for SB 54.
Our Ask
Examine the early outcomes in states already implementing EPR. These early results show the risks of moving too fast and the need to avoid raising costs for families and paper manufacturers.
But the bottom line is, paper recycling already works and EPR won’t improve it. EPR will only increase the cost of doing business and raise prices for American families.