State Farm General Insurance Company has finalized a settlement agreement with the California Department of Insurance and consumer advocacy group Consumer Watchdog, allowing the insurer to retain an average 17% increase in homeowners insurance rates implemented last year following devastating Los Angeles wildfires. The deal, filed with an administrative law judge on March 6 and reported widely March 7-9, resolves a contentious rate review proceeding while providing concessions including no mass non-renewals of homeowner policies through 2026 and potential refunds or credits for some policyholders.

The agreement stems from State Farm’s emergency rate request in 2025 after massive payouts from the January 2025 Los Angeles County fires — the costliest disaster in the company’s history. State Farm paid billions in claims, prompting financial strain and an initial interim hike approved by Insurance Commissioner Ricardo Lara. The insurer sought further increases, but the settlement caps the rate at the existing 17% average for homeowners, rejecting additional hikes that could have pushed totals toward 30% in some cases. Renters face a slight adjustment from 15% to 15.65%.

Under the terms, State Farm commits to forgo broad non-renewals in 2026, offering stability to its roughly 1 million California home customers amid ongoing market challenges. The company also agreed to a full rate review by 2027 and other consumer protections. Consumer Watchdog estimated the deal saves policyholders approximately $530 million overall compared to State Farm’s original requests, though some details — including exact refund mechanisms — remain pending judge approval and supporting filings due March 20.

The settlement addresses criticisms from consumer groups and regulators over rising premiums in a state plagued by wildfire risks, insurer pullbacks and availability issues. State Farm, holding about 20% of California’s home insurance market, had paused new business writings in prior years before navigating emergency approvals. The deal balances solvency concerns with consumer relief, as the company continues claims processing from past catastrophes while facing scrutiny over handling practices.

Beyond California, State Farm announced active catastrophe response efforts in mid-March. On March 13, the company deployed teams to assist customers hit by historic hail and severe weather across the central U.S., including tornado outbreaks. Claims teams mobilized to support affected policyholders in multiple states, emphasizing rapid aid following storms that caused widespread damage.

Financially, State Farm reported a strong turnaround in recent results. In February 2026 disclosures, the mutual company highlighted a $1.5 billion underwriting gain for property/casualty lines in 2025 — a reversal from multibillion-dollar losses in prior years driven by catastrophes. This improvement underpinned the largest dividend in company history: $5 billion in cash back to auto customers announced February 26, with payouts averaging around $100 per eligible driver expected this summer. The dividend reflects better-than-expected performance and rewards loyal policyholders nationwide, including in states like Louisiana where $136 million was allocated.

Auto rate adjustments continue in select markets. State Farm secured approvals for reductions in areas like California (6.2% in recent filings) and South Carolina, part of broader efforts to ease pressures where possible. In Georgia, cumulative cuts exceeded 10% over the past year, saving drivers an estimated $400 million annually through fraud reforms and negotiations.

The California homeowners settlement drew mixed reactions. Advocates praised concessions on non-renewals and potential savings, while some policyholders expressed frustration over sustained higher costs in wildfire-prone zones. The agreement avoids immediate further hikes but underscores ongoing challenges in the state’s insurance market, where carriers cite rising reinsurance costs, climate risks and regulatory hurdles.

State Farm’s newsroom emphasized customer focus, with recent leadership updates including the appointment of Michelle Russo as Chief Communications Officer. The company maintains strong community ties through ESG initiatives and remains the nation’s largest auto and home insurer, serving over 96 million policies and accounts via 19,000 agents.

As the settlement awaits final judicial review, attention turns to implementation and any broader implications for California’s insurance landscape. State Farm continues advocating for reforms to address catastrophe exposure while committing to coverage stability. The deal represents a key step in navigating post-wildfire recovery and financial recovery for the insurer and its policyholders.

California Gov. Gavin Newsom over the weekend renewed his claim that Florida and Texas are the “real high-tax states,” arguing that lower- and middle-income residents in those states shoulder a heavier tax burden than their counterparts in the Golden State.

Speaking onstage at SXSW in Austin, Texas, the Democratic governor framed the issue in moral terms.

“We have the most progressive tax rates in America. Texas, the most regressive. Texas taxes poor folks more than we tax our richest. The question for you is who’s the higher tax state? California or Texas? Who are you for? Are you just for the 1% or are you for the 98%?” Newsom said, before taking a shot at Florida, which he called the “other regressive tax state.”

“Your middle class pays more taxes in Texas than our middle class in California,” Newsom added. “It’s a great mythology – it’s just ‘the richest of the rich come here because they can avoid paying a damn penny.’”

BILLIONAIRES AND BUSINESSES FUEL GROWING EXODUS FROM BLUE STATES

Gavin Newsom speaks onstage during the “Networth And Chill” featured session during the 2026 SXSW Conference And Festival at Hilton Austin on March 15, 2026, in Austin, Texas. (Julia Beverly/WireImage / Getty Images)

The remarks drew pushback online, with RealClearPolitics co-founder Tom Bevan calling Newsom’s claim a “blatant, verifiable falsehood.” 

He shared a Wallethub 2025 analysis ranking U.S. states by overall tax burden, with California coming in at 4th overall, behind Vermont, New York and Hawaii. 

The governor, who has made similar arguments before, appeared to be referring to a study from the Institute on Taxation and Economic Policy (ITEP), which ranks Florida as the most regressive state and local tax system in the country and Texas the seventh-most regressive.

RENO SURPASSES LAS VEGAS AS TOP DESTINATION FOR CALIFORNIA HOMEBUYERS SEEKING AFFORDABILITY

ITEP’s analysis focuses on how tax burdens are distributed across income groups rather than overall tax levels. The group argues that states such as Texas and Florida look “low tax” largely because they do not levy a broad-based personal income tax — a structure that disproportionately benefits high earners.

To make up the difference, those states rely more heavily on sales, excise and property taxes, which tend to take a larger share of income from lower-income households. California, by contrast, uses a highly progressive income tax system that places more of the burden on top earners and helps offset regressive taxes lower down the income ladder.

Vivian Tu, left, and Gavin Newsom speak on stage during “Networth And Chill With Guest Governor Gavin Newsom” at the 2026 SXSW Conference And Festival at Hilton Austin on March 15, 2026, in Austin, Texas. (Gary Miller/FilmMagic / Getty Images)

Critics, however, say that framing captures only part of the picture because it focuses on tax burden by income group rather than overall tax climate — where California remains far more burdensome for top earners, investors and many businesses.

California has the highest top marginal income tax rate in the nation at 13.3%, while Texas and Florida have no state income tax. On a per capita basis, California also collects significantly more in state and local taxes than either state, according to data from the Tax Foundation. 

THE STATES WHERE AMERICANS PAY THE MOST – AND LEAST – FOR ELECTRICITY

The debate comes as California has seen continued net domestic outmigration in recent years, while Texas and Florida have attracted new residents and businesses, according to U.S. Census Bureau data.

Florida Gov. Ron DeSantis, who has repeatedly clashed with Newsom over the relative merits of red- and blue-state governance, mocked the Democrat’s remarks on X.

Florida Gov. Ron DeSantis speaks during a roundtable discussion on college sports in the East Room of the White House on March 6, 2026, in Washington, D.C. (Anna Moneymaker/Getty Images / Getty Images)

“There are lies, damned lies and statistics. Then there is whatever you’d call the claim that California has lower taxes than Florida,” DeSantis wrote, reposting Bevan. “Even people who like California governance acknowledge CA is a very high tax state: highest sales, income and gas taxes in the nation.”

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FOX Business has reached out to Newsom’s office, the Institute on Taxation and Economic Policy and the Tax Foundation for additional comment.

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Travelers at John F. Kennedy International Airport (JFK) faced mixed TSA security wait times Tuesday, March 17, 2026, with some terminals seeing lines exceeding 30 minutes while others cleared in under 5 minutes. Real-time data from the official JFK Airport website showed significant variation across the airport’s terminals during peak spring break travel, compounded by lingering staffing pressures from the partial government shutdown now in its second month.

As of mid-morning EDT (late evening KST), general security lines stood at: Terminal 1 — 1 minute; Terminal 4 — exceeds 30 minutes; Terminal 5 — 20 minutes; Terminal 7 — 1 minute; Terminal 8 — 29 minutes. TSA PreCheck lanes offered faster access, with waits of no wait at Terminal 1, 7 minutes at Terminal 4, 10 minutes at Terminal 5, and 6 minutes at Terminal 8. Terminal 7 had no PreCheck listed. These figures update in real time on the airport’s site, reflecting checkpoint conditions over recent minutes.

The disparities highlight Terminal 4 and Terminal 8 as hotspots, often due to high international traffic and major carriers like Delta, JetBlue, and American Airlines operating there. Terminal 4, a key hub for international arrivals and departures, frequently sees longer lines from global passengers navigating additional screening protocols. In contrast, Terminals 1 and 7 — serving airlines like Aer Lingus and British Airways — moved quickly Tuesday.

The ongoing partial government shutdown has exacerbated delays at JFK and other major U.S. airports during the busy spring break season. Staffing shortages from unpaid TSA agents and call-outs have led to longer processing times, though JFK’s lines appeared more manageable Tuesday than earlier in the week. Reports from March 12-14 indicated waits up to 36 minutes at Terminal 4 and 33 minutes at Terminals 5 and 8, with PreCheck holding under 10 minutes. By March 17, some improvement occurred in non-peak terminals, but international-heavy checkpoints remained strained.

Average daily waits at JFK typically range 14-20 minutes for standard lines, climbing to 18-35 minutes during peaks like 6-9 a.m. and 4-7 p.m. Early mornings (5-8 a.m.) often see 24-minute averages due to business travel surges. Historical data suggests off-peak overnight hours dip below 15 minutes, but spring break crowds and shutdown effects push variability higher.

Passengers can monitor conditions via multiple sources. The JFK Airport website provides terminal-specific real-time updates, refreshed every few minutes, including PreCheck and estimated gate travel times post-security. The MyTSA app offers 15-minute interval estimates based on crowd-sourced and official data, though shutdown-related disruptions may affect accuracy. Third-party sites like Way.com and OnAirParking aggregate live feeds, reporting averages around 14-19 minutes recently.

To minimize delays, experts recommend arriving 2-3 hours early for domestic flights and 3+ hours for international, especially now. Enrolling in TSA PreCheck or CLEAR expedites screening: PreCheck allows kept-on shoes, laptops in bags, and shorter dedicated lanes, while CLEAR uses biometrics for front-of-line access. Programs remain operational despite earlier shutdown pauses. T4 Reserve at Terminal 4 lets passengers book free security slots in advance.

Additional tips include reviewing TSA guidelines on liquids (3-1-1 rule), avoiding prohibited items, and using mobile boarding passes. The airport advises checking flight status via airline apps, as security waits can compound with gate changes or delays.

JFK’s five active terminals handle over 60 million passengers annually, making efficient security crucial. While Tuesday’s data showed relief in some areas, the shutdown’s impact persists, with no immediate resolution in sight after recent failed Senate votes. Travelers should plan conservatively and use live tools for updates.

As spring break continues, JFK remains a high-volume hub where preparation pays off. Real-time monitoring and expedited programs offer the best defense against unpredictable lines.