Another year, another mass migration out of California. Despite Governor Gavin Newsom’s endless proclamations about the state being the “beating heart of the American economy,” businesses and residents continue to flee in droves, with Texas standing ready to scoop them up. It seems that the appeal of lower taxes, affordable housing, and fewer bureaucratic hurdles has proven far more persuasive than Newsom’s lofty rhetoric.
Since 2018, over 360 companies have bid farewell to the Golden State, according to the California Policy Center’s aptly titled California Book of Exoduses. By 2023, more than half of these businesses had made their way to Texas, where a welcoming, pro-business environment awaits. Take Simplilearn, a global tech company, for example. The firm uprooted itself from San Francisco and relocated to Plano, Texas, with its CEO praising the move as essential for growth. Apparently, California’s “progressive” policies were more like progressive roadblocks for companies trying to thrive.
The departures haven’t slowed down. Irvine-based Resources Connection Inc. called it quits after nearly 30 years in California, opting for Dallas instead. Meanwhile, Koya Medical relocated from Oakland to Dallas, bringing over 200 jobs along for the ride, thanks to financial incentives offered by the city. Even Silicon Valley isn’t immune—ABBYY, a data analytics and AI company, packed up and moved to Austin, Texas, embracing the state’s booming “Silicon Hills.” FreshRealm, a meal kit company tied to retail giants like Amazon and Kroger, chose Lancaster, Texas, citing a “hard-working” culture that apparently isn’t synonymous with California anymore.
And it’s not just businesses making a break for it. California’s insurance market is imploding, with major players like State Farm and Allstate cutting their losses and leaving the state altogether. Years of underwriting losses have made the Golden State unprofitable, and these insurers have no interest in sticking around to see if things improve. Meanwhile, Texas continues to rack up accolades, being named the best state for business year after year and outpacing California in job creation and economic expansion. The message is clear: businesses and residents would rather bet on the Lone Star State’s stable policies than deal with California’s chaos.
The numbers tell the story Newsom refuses to admit. In 2023, Texas gained half a million residents, with over 100,000 fleeing California. It’s easy to see why. Texas offers no personal income tax, robust law enforcement support, and an economic engine that leads the nation in growth. Contrast that with California, which recorded its first population loss under Newsom’s watch—a trend not seen since its statehood in 1850. High taxes, unaffordable housing, and a punishing business climate have turned the Golden State into the Exodus State. And as more businesses and families pack their bags for Texas, it’s clear they’ve decided that California’s sunshine isn’t worth the storm of problems it brings.
