You are right about it, the restrictions and regulations (I have not looked into it but I think I said earlier, something about stainless steel whelping boxes, ALL CONCRETE for flooring, etc.) would not be able to be done in people’s homes who are just hobby breeders. So sad :(
USDA regulations were written for commercial breeding establishments or for USDA brokers, not for hobbyists. The people who wrote them never intended them for the latter.
USDA regulations require separate housing, separate plumbing/sewer and the flooring and whelping materials you mention. Once again, this was never meant for the non-commercial, hobby dog or cat fancier.
The current administration has been using USDA as a plaything for some time now. People got payouts for being “minority farmers”, who have never seen a farm, much less who ever made a dime from farming. This is more of the same: make-work government jobs for imaginary work. Oh, and the fines will work great to redistribute more wealth from middle class people.