Lloyd Center Closes After 66 Years: The End of an Era for Portland's Iconic Mall

 

Lloyd Center Closes After 66 Years: The End of an Era for Portland's Iconic Mall

On August 8, 2026, Portland's Lloyd Center—a landmark that defined the city's retail landscape for over half a century—officially closed its doors. The closure marks the end of an institution that was once the largest shopping center in the nation, a beloved community gathering place, and the site of the country's first indoor mall skating rink .

## A History Written in Concrete and Caramel Corn

When Lloyd Center opened on August 1, 1960, it was a celebration of mid-century ambition. Mayor Terry Schrunk cut a 100-foot ribbon as 700 homing pigeons were released to carry news of the event to dozens of Northwest cities . The mall was the culmination of a decades-long dream by California oil baron Ralph Lloyd, who had begun buying up eastside Portland real estate in the 1920s with the vision of building an "alternate downtown" .

At its debut, Lloyd Center boasted 1.2 million square feet of rentable space and over 80 stores, making it the nation's largest urban shopping center—a distinction that, while short-lived, cemented its place in retail history . It wasn't just a place to shop; it was a destination. Families flocked from across the region to visit its open-air ice rink, the first of its kind in a U.S. shopping mall, where a young Tonya Harding famously first learned to skate .

For decades, Lloyd Center thrived. Generations of Portlanders have memories of scampering up its spiral staircase, enjoying a meal at the restaurant overlooking the ice rink, or browsing its eclectic mix of stores . It was a place where teenagers loitered, where holiday visits with Santa were a tradition, and where the community found a shared living room.

## The Long Decline

The seeds of Lloyd Center's closure were planted in the changing retail landscape of the late 20th and early 21st centuries. The rise of online shopping and the downsizing of department store chains took a heavy toll. Anchor stores like Nordstrom and Sears departed, and a series of expansions and renovations proved insufficient to reverse the decline .

By 2020, the mall's fate was sealed. The COVID-19 pandemic further accelerated the exodus of shoppers and tenants. In 2021, the last anchor store closed, and the mall entered foreclosure . Its ownership was eventually transferred to a consortium led by Urban Renaissance Group (URG) and KKR Real Estate, who saw the mall's future not as a shopping destination but as a site for something new.

## A Final Farewell

The final weeks and days of Lloyd Center were a poignant mix of sadness, nostalgia, and celebration. As the closure date approached, community members organized a slate of farewell events, including a "Prom on Ice" where skaters donned formal attire, a final retro fitness "Food Court 5000" walk, and a final skate led by a couple who had frequented the rink for nearly six decades .

The closure left a deep emotional impact on the community. For some, it was the loss of a "safe space for weirdos" where niche communities, like the Beyblade club, found a home . For others, it was a profound personal loss.

"I'm kind of sad to say that this place is going to shut down permanently. It's been a childhood for me," said Krisine Menbioro, acting manager of Trend Shoes, a tenant for over 20 years . For longtime shopper Paul Braukmann, who has been coming to Lloyd Center since 1960, "finding a replacement will not be easy" .

## What Comes Next: A New Neighborhood

While the mall's closure marks the end of an era, it is also the beginning of a new chapter. Urban Renaissance Group plans to transform the 29-acre property into a massive mixed-use neighborhood .

The redevelopment plan calls for:

- Up to **5,000 new apartments** to help address Portland's housing shortage.

- A reconnected street grid to better link the site with the surrounding neighborhood.

- A new pedestrian promenade, courtyards, plazas, and a **2.3-acre park**.

- Space for new businesses and a potential corporate campus .

The plans have been controversial, with groups like "Save Lloyd" and the "Save Lloyd Ice Coalition" fighting to preserve the mall, and particularly its iconic ice rink . Despite hours of testimony, the Portland City Council rejected an appeal in July, clearing the way for demolition . The new music venue being constructed in the former Nordstrom site is a first step in that transformation .

## The Human Element: A Place Beyond Shopping

The closure of the Lloyd Center is a reminder that malls are more than just retail spaces; they are a "third place"—a vital community space outside of home and work where people gather, build memories, and create a shared identity .

As Kye Grant of the Save Lloyd group poignantly stated, "Lloyd has a personality, a soul and a beating heart. There’s no other place in the city, or maybe even the world, that brings people together under one roof like Lloyd does" .

The Lloyd Center's story is a classic American tale of rise, decline, and reinvention. The ghosts of its past will linger in the memories of the Portlanders who loved it, but the space it occupied is poised to become a living part of the city's future.

## Frequently Asked Questions

**Q: Why is Lloyd Center closing?**

A: Lloyd Center is closing because it is no longer economically viable. For years, the mall has struggled with high vacancy rates—nearly 90%—and the loss of major anchor stores. The current owners plan to redevelop the site into a mixed-use neighborhood, which will involve demolishing the existing mall structure .

**Q: What was special about the Lloyd Center?**

A: When it opened in 1960, it was the largest shopping center in the U.S. It was also home to the first indoor shopping mall ice skating rink in the country, where notable figures like Tonya Harding first learned to skate. For decades, it was a beloved gathering place for families and the community .

**Q: When will the demolition happen?**

A: The mall closed to the public on August 8, 2026. The exact timeline for demolition has not been confirmed, but redevelopment is expected to be a long process, with some describing it as a "construction zone—at best—for a decade" .

**Q: What will replace the mall?**

A: The owners plan to build a new mixed-use neighborhood on the site. The plan includes up to 5,000 apartments, a reconnected street grid, parks, plazas, and new commercial spaces.

**Q: Will the ice rink be saved?**

A: The current redevelopment plan does not include preserving the ice rink. It will be demolished as part of the project. Despite community efforts to save it, an appeal to the City Council was rejected in July .

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## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only. The information contained herein is based on publicly available sources and reflects the author's understanding as of August 8, 2026. Redevelopment plans, construction timelines, and specific project details are subject to change. The closure and demolition of the mall, as well as the future of the site, are subject to ongoing processes that may be modified.

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*Published: August 8, 2026*

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**Tags:** Lloyd Center, Portland, mall closure, redevelopment, Urban Renaissance Group, ice rink, Portland history, shopping mall, mixed-use development, community gathering, KKR

The $1.45 Trillion Warning: How Scott Bessent's Financial Engineering Is Masking a Looming Debt Crisis

 The $1.45 Trillion Warning: How Scott Bessent's Financial Engineering Is Masking a Looming Debt Crisis

## The Treasury Secretary is using a short-term fix to fund America's $2 trillion deficit. A secret advisory committee just warned it could blow up by 2028.

---

### Introduction: The "Groundhog Day" Strategy That's Running Out of Time

For more than a year, the U.S. Treasury has operated under a predictable, if controversial, issuance strategy. Secretary Scott Bessent has leaned heavily on short-term Treasury bills—essentially, government IOUs that come due in a year or less—to finance a roughly $2 trillion annual deficit . This approach has kept reported borrowing costs artificially low, with three-month bills yielding around 3.8% compared to 4.6% for 10-year notes and more than 5% for 30-year bonds .

But on August 5, 2026, a little-noticed warning from a group of Wall Street bankers sent a chill through the financial world. The Treasury Borrowing Advisory Committee—a panel of senior bond dealers and investors that advises the Treasury on its own funding—warned that at current auction sizes, the government faces a **$1.45 trillion funding shortfall in fiscal 2027–28** .

The strategy, to be clear, didn't start with Bessent. It was Janet Yellen, his predecessor, who first leaned hard on short-term bills to help fund the deficit, and at the time, Bessent was among her sharpest critics. In 2024 he supported an influential analysis that accused Yellen's Treasury of "activist Treasury issuance": flooding the market with bills to hold down long-term yields and flatter the economy ahead of the election . Now Bessent occupies her chair and is doing much the same thing.

The difference? The bill-heavy strategy is meeting its end. With roughly one-third of all outstanding U.S. debt—approximately $10 trillion—set to mature within the next 12 months, the Treasury faces a reckoning . And the bond market is beginning to push back .

---

## The Yellen Era: How Short-Term Borrowing Became the Norm

To understand what Bessent is doing, you have to understand what he inherited. Former Treasury Secretary Janet Yellen's tenure was defined by a tactical tilt toward short-term Treasury bills. The strategy relied on the massive liquidity of money-market funds—now totaling approximately $7.6 trillion—to absorb high volumes of T-bills .

While this kept long-term borrowing costs from spiking, critics argue it left the government's debt costs dangerously vulnerable to sudden rate swings and shifts in market sentiment. Key metrics at a glance :

- **Annual Deficit:** Approximately $2 trillion

- **Money Market Liquidity:** $7.6 trillion pool currently absorbing bills

- **The 2026 "Debt Wall":** Roughly one-third of all outstanding U.S. debt—approximately $10 trillion—is set to mature within the next 12 months

### The Irony of Bessent's "Flip-Flop"

Bessent himself was among the sharpest critics of this strategy. In 2024 he supported and amplified an influential analysis by economists Stephen Miran and Nouriel Roubini that accused Yellen's Treasury of "activist Treasury issuance": flooding the market with bills to hold down long-term yields and flatter the economy ahead of the election .

Now Bessent occupies Yellen's chair and is doing much the same thing, while Miran himself works inside the Trump administration. The strategy, to be clear, didn't start with Bessent—but he's now its chief defender.

---

## The Bessent Era: Masking the Problem with "Financial Engineering"

### The 3-3-3 Plan

Secretary Bessent's entry signaled the end of the status quo. While he initially maintained Yellen's guidance to avoid immediate market shocks, he is now prioritizing a growth-oriented framework known as the 3-3-3 Plan :

- **3% GDP Growth:** Driven by deregulation and the "One Big Beautiful Bill," which aimed to make 2017 tax cuts permanent

- **3% Deficit Target:** An ambitious goal to slash the federal deficit to 3% of GDP by 2028

- **3 Million Extra Barrels of Oil:** A push for energy independence to lower the "inflationary floor" and reduce federal interest expenses

### The Deficit Math

The problem is that the government's own budget projections do not currently support a 3% deficit target. The Congressional Budget Office projected in February that the federal deficit will reach $1.9 trillion, or 5.8% of GDP, in fiscal year 2026—and will not fall below 5.6% of GDP at any point over the next decade .

The federal government is projected to spend more than $1 trillion on interest payments alone in fiscal year 2026, more than all discretionary defense spending. By 2036, CBO projects annual interest costs will reach $2.1 trillion, approaching the total projected cost of all discretionary federal spending that year .

### The $1.45 Trillion Shortfall

The TBAC's warning is the most concrete signal that Bessent's strategy is running out of road. The committee warned that at current auction sizes, the government faces a $1.45 trillion funding shortfall in fiscal 2027–28 .

What that means takes a primer to understand how Washington actually borrows. The Treasury doesn't take out one huge annual loan; rather, it raises cash by selling debt at regularly scheduled auctions. The shortest-dated IOUs, sometimes called "T-bills," come due in a year or less, while the longer-dated notes and bonds—known as "coupons"—run anywhere from two to 30 years .

The T-bills offer Washington a rare opportunity to borrow money for cheap. At the time of writing, the three-month bill yielded around 3.8%, while the 10-year Treasury yield sat around 4.6%, and the 30-year at a multi-decade high above 5%. So what Bessent has done is lean unusually hard on the cheaper rate today to finance a roughly $2 trillion annual deficit. That holds down reported borrowing costs but leaves the government more exposed to inflation and rising rates .

---

## The Human Element: Why This Matters to Every American

For most Americans, the abstraction lands in a concrete place: mortgage rates, which are benchmarked to Treasury yields and sit above 6% while much of the developed world pays closer to something like 4% . The government's total debt on interest alone now runs over $1 trillion annually, more than the United States spends on national defense .

Jon Hilsenrath, the veteran Federal Reserve watcher who spent decades at The Wall Street Journal and now runs his own advisory firm, Serpa Pinto Advisory, puts it bluntly :

> "If there are cracks that show up in the financial system over the next few years, I've been expecting them to show up in Treasury debt. If you look at any serious financial crisis, all you've got to do is follow the debt."

In 2008, that meant mortgages, but today, Hilsenrath argues, "all the growth has been in federal debt."

The even bigger problem, Hilsenrath says, is a collision taking shape between the Treasury and the Fed. Just as Treasury is likely forced back toward longer-term bonds, the Fed under new Chair Kevin Warsh is moving to shrink its own balance sheet. The TBAC minutes note dealers expect the Fed's holdings to drift toward shorter maturities and more bills—and Hilsenrath says a Warsh-appointed new Fed committee, due to report on the balance sheet in December, will almost certainly conclude the Fed is overstocked on long-term Treasuries and must wind them down. That would mean two waves of long-term supply, converging, with fewer buyers .

> "It always comes back to fundamentals," Hilsenrath said. "Trump and a new Congress came into power and chose not to do anything about the deficit."

### The "Frog in Boiling Water" Warning

Hilsenrath offers a chilling metaphor for the slow-motion crisis :

> "We are slowly boiling ourselves like a frog."

Foreign holders like Japan and China have been slowly diversifying into gold rather than dumping bonds or fully "selling America," he noted—which buys Washington politicians time but keeps deferring the problem.

---

## The Collision Course: The Fed's Balance Sheet and the Debt Wall

Just as Treasury is likely forced back toward longer-term bonds, the Fed under new Chair Kevin Warsh is moving in the opposite direction. The TBAC minutes note dealers expect the Fed's holdings to drift toward shorter maturities and more bills .

Hilsenrath says a Warsh-appointed new Fed committee, due to report on the balance sheet in December, will almost certainly conclude the Fed is overstocked on long-term Treasuries and must wind them down.

That would mean two waves of long-term supply, converging, with fewer buyers .

### The "Bessent Put"

The former hedge fund manager has developed a reputation for tamping down sharp market moves. Vishal Khanduja at Morgan Stanley Investment Management is among those labeling him a "volatility seller." President Donald Trump put it more simply in October: "He soothes the markets" .

But the $31 trillion Treasuries market has appeared less than soothed since Trump took the US to war against Iran, sending energy costs sharply higher and boosting inflation. The 10-year yields that Bessent has focused on as his key market metric have soared over half a percentage point in that period, while 30-year bond rates have touched the highest levels since 2007 .

"The 'Bessent put' refers to a belief that Treasury could shift issuance to the front end," said Priya Misra, a portfolio manager at JPMorgan Asset Management .

---

## What's Next: The Options—and Their Limits

Bessent has a few tools at his disposal, but none appear to be a "silver bullet" :

### 1. Buybacks

The Treasury has already repurchased about $2.8 billion of its own debt in a routine buyback operation in January 2026, targeting older Treasury securities maturing in 2028 and 2029 . The goal is to improve liquidity rather than reduce overall debt.

But buybacks are limited in scale. The buyback program is now a standard part of how the Treasury manages its debt, alongside regular auctions and issuance plans . However, these buybacks do not meaningfully reduce the national debt, and they do not change the long-term fiscal outlook .

### 2. Shifting Issuance to the Front End

Bessent could continue leaning on short-term bills, but the strategy is running out of room. The Treasury General Account—the cash balance at the Federal Reserve—is being built up to about $900 billion by the end of June and about $1 trillion by the end of July .

### 3. The GENIUS Act

The administration is attempting to create new demand sinks for government debt. The GENIUS Act creates a structural demand for Treasuries by requiring stablecoin issuers to back their digital assets with U.S. government securities. Bessent predicts this could create up to $1 trillion in fresh demand for T-bills, potentially allowing the Treasury to pivot other issuance toward long-term "coupon" debt .

### 4. "Economic Statecraft"

The administration is countering these pressures through "Economic Statecraft," attempting to find new demand sinks for government debt. Bessent has shown creativity in confronting other market challenges: authorizing a rate-check to help Tokyo stanch a slide in the yen, engineering a swap for Argentina in an ultimately successful effort to support the peso, and reportedly discussing potential intervention in oil contracts .

## Frequently Asked Questions

**Q: What is the $1.45 trillion shortfall warning from TBAC?**

A: The Treasury Borrowing Advisory Committee—a panel of senior bond dealers and investors that advises the Treasury on its own funding—warned that at current auction sizes, the government faces a $1.45 trillion funding shortfall in fiscal 2027–28 . This means the Treasury will struggle to roll over the roughly $10 trillion in debt coming due in the next 12 months.

**Q: Why is the Treasury using short-term bills instead of long-term bonds?**

A: Short-term bills offer cheaper borrowing costs—about 3.8% for three-month bills compared to 4.6% for 10-year notes and above 5% for 30-year bonds . This holds down reported borrowing costs but leaves the government more exposed to inflation and rising rates.

**Q: How does this affect me?**

A: For most Americans, the abstraction lands in a concrete place: mortgage rates, which are benchmarked to Treasury yields and sit above 6% while much of the developed world pays closer to 4% . The government's total debt on interest alone now runs over $1 trillion annually, more than the United States spends on national defense .

**Q: What is the GENIUS Act?**

A: The GENIUS Act creates a structural demand for Treasuries by requiring stablecoin issuers to back their digital assets with U.S. government securities. Bessent predicts this could create up to $1 trillion in fresh demand for T-bills, potentially allowing the Treasury to pivot other issuance toward long-term debt .

**Q: Who is Scott Bessent?**

A: Scott Bessent is the U.S. Treasury Secretary under President Trump. He is a former hedge fund manager who worked under George Soros and Stanley Druckenmiller, helping engineer the bet that "broke the Bank of England" in 1992. He has a reputation as a "volatility seller" who soothes markets .

**Q: What is the "3-3-3 Plan"?**

A: Bessent's growth-oriented framework includes: 3% GDP growth driven by deregulation, a 3% deficit target by 2028, and 3 million extra barrels of oil per day to lower the "inflationary floor" and reduce federal interest expenses .

---

## Conclusion: The "Yellen-Era" Shelter Has Been Dismantled

The Bessent-era strategy is a high-wire act. By leaning heavily on short-term bills, he is buying time—but at a cost. With $10 trillion in debt rolling over in a higher-rate environment, the Treasury's ability to maintain "steady" auction sizes is reaching a breaking point .

The TBAC's $1.45 trillion warning is the canary in the coal mine. If the Treasury is forced to issue more long-term debt at higher rates, it could crowd out private investment, push mortgage rates even higher, and accelerate the debt spiral.

As Hilsenrath put it: "It always comes back to fundamentals. Trump and a new Congress came into power and chose not to do anything about the deficit."

The former hedge fund manager is now dancing with the market he once traded against. The question is whether he can keep the rhythm—or whether the music is about to stop.

--Read more-

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Government debt, Treasury yields, and fiscal policy are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions.

New Mexico Court Orders Meta to Pay $567M Over Child Mental Health Harm in Landmark "Public Nuisance" Ruling

 New Mexico Court Orders Meta to Pay $567M Over Child Mental Health Harm in Landmark "Public Nuisance" Ruling

**The state judge also mandated sweeping changes to Facebook and Instagram for young users, including time limits, notification bans, and default private accounts—the first time a U.S. court has held a social media giant liable for creating a "public nuisance" through its product design. The total exposure for Meta now exceeds $942 million in this case alone, with the company vowing to appeal.**

## The Ruling That Could Reshape Social Media

On August 6, 2026, a New Mexico state judge delivered a historic ruling against Meta Platforms, ordering the social media giant to pay **$567 million** and implement sweeping changes to Facebook and Instagram to protect young users . The decision marks the first time a U.S. court has held that a social media company can be sued, tried, and held financially and structurally accountable for building products that endanger children .

Judge Bryan Biedscheid ruled that Meta's platforms constitute a **"public nuisance"** under New Mexico law, rejecting the company's claim that Section 230 shielded it from liability . "Although Meta is not alone in this regard, its social media platforms are a significant contributing factor to the current mental health crisis among New Mexico's youth," the judge wrote .

The ruling came in the second phase of a two-part trial. In March 2026, a jury had already found that Meta violated the state's Unfair Practices Act by misrepresenting the safety of its platforms for children, imposing a **$375 million** civil penalty . Combined, Meta's total financial exposure in New Mexico now stands at **$942 million** .

New Mexico Attorney General Raúl Torrez hailed the decision as a "historic moment." "Meta built products it knew would fuel addiction, deepen a youth mental health crisis, and expose children to sexual exploitation, then lied to parents and policymakers about the danger," Torrez said. "Today, it pays for that choice" .

## How the $567 Million Will Be Used

The bulk of the $567 million payment—**$420 million**—will be allocated to mental health treatment services for young people affected by social media harm . The remaining funds will go toward awareness and prevention programs, screening services, referrals and care coordination, and program oversight over the next five years .

The breakdown includes $33 million for prevention and awareness, $90 million for screening and assessment, $15 million for referrals and care coordination, $420 million for treatment, and $9 million for program oversight and evaluation .

## Sweeping Changes to Facebook and Instagram for Young Users

Beyond the financial penalty, the court ordered Meta to implement extensive reforms that will remain in effect for **five years** under court supervision . These are among the most significant restrictions ever imposed on a social media platform for the protection of minors .

### For New Mexico Users Under 18:

- **Time limits**: Users under 18 are limited to **90 hours per month** on Instagram and Facebook (approximately three hours daily on average) .

- **Notification restrictions**: Push notifications are **blocked from 8 a.m. to 3 p.m.** on weekdays during the school year and from **10 p.m. to 7 a.m.** on all other days .

- **Default private accounts**: Teen accounts in New Mexico must be set to **private by default** .

- **Hidden "like" counts**: Public "like" counts must be hidden for users under 18 .

- **Age verification improvements**: Meta must continue to improve age assurance tools, including developing an AI-based "under-13-years-of-age prediction model" within two years .

### For Users Under 13:

- **Account deletion**: Meta must delete the accounts of users determined to be under 13, along with all personal information collected from those accounts .

- **Enhanced age detection**: Meta must request proof of age for users it estimates to be under 13 and treat them as under 18 until age is verified .

### Additional Requirements:

- **Banner and informational screens**: Facebook and Instagram must build and display screens that clearly explain protection features, best practices, and tools to address inappropriate content .

- **Reporting portal**: Meta must partner with schools or a child safety organization to create a portal where school staff can flag users who may be under 13 .

- **Semi-annual compliance reports**: Meta must file public reports with the court twice a year documenting its progress .

The court noted that federal children's privacy laws (COPPA) prevent Meta from applying hard age-verification tools that require children to submit personal data, and that singling out Meta for such requirements would be "inequitable and unduly injurious" to the company .

## The Evidence: Features Designed to Hook Kids

The court's ruling was based on extensive testimony and evidence showing that Meta intentionally designed its platforms with features that keep users—especially teenagers—engaged longer .

Judge Biedscheid found that features such as **endless scrolling, autoplay, push notifications, "like" counts, and algorithmic content recommendations** were deliberately designed to capture and boost engagement, contributing to higher rates of depression, anxiety, self-harm, eating disorders, and suicide risk among young people .

The court also found that Meta's platforms contributed to **child sexual exploitation** and placed added pressure on schools, law enforcement, and New Mexico's mental health system .

"The harmful effects of Meta's platforms on children do not stay contained by its platforms," the judge said during the ruling. "Instead, [they] migrate to the internet as a whole and, perhaps most concerning, to the real world and create a common, societal burden on and harm to the affected children and their families and schools, as well as hospitals and law enforcement" .

## Meta's Response: "We Disagree and Will Appeal"

Meta has vowed to appeal the ruling, arguing that the decision misrepresents the company's efforts to protect young users .

"We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content," a Meta spokesperson said. "We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts" .

Meta has argued that teen mental health is "profoundly complex" and cannot be linked to a single app . The company also points to the more than 30 safety tools it has introduced for teens and families in recent years .

The appeals process is expected to play out over months or years, but Attorney General Torrez said his office would "be pressing the court to order the payment of these funds as quickly as possible" . "The longer we wait, the more harm is done to our kids," he added .

## The Bigger Picture: A Turning Point in Social Media Litigation

The New Mexico ruling represents a watershed moment in the legal battle over social media's impact on children. It was the **first time** a U.S. court has found a social media company guilty of creating a "public nuisance" through its product design .

The ruling comes amid an avalanche of lawsuits against Meta from thousands of families, dozens of states, and school districts across the country . More than 30 states are suing Meta over similar allegations .

Meta is also gearing up for a trial later this month in federal court in Oakland, California, where it will face the first four of 29 states that sued it in a federal multi-district lawsuit filed in 2023 for contributing to the youth mental health crisis . Eight states, including Tennessee, have filed lawsuits in their own state courts .

Late last month, Meta, along with TikTok, Snap, and Google's YouTube, were sued by the families of four teenagers who died by suicide over what they describe as "years of escalating harms" from using their platforms .

## The Human Element: A Victory for Parents and Kids

For New Mexico Attorney General Raúl Torrez, the ruling is personal. "Today's decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online," he said .

Amnesty International USA also praised the ruling, calling it "an important step towards creating safer social media for children and young people" . "By ordering changes to platform features, the ruling recognizes that the harms children experience online are often the result of deliberate design choices," said Justin Mazzola, Deputy Director of Research at Amnesty International USA .

Torrez announced he intends to close the remaining regulatory gaps through legislation, starting with a comprehensive social media safety bill in the New Mexico Legislature that would mandate age verification for platforms operating in the state .

"A courtroom can punish what already happened. Only a law can stop it from happening again," Torrez said .

## Frequently Asked Questions

### Q: Why did the New Mexico court order Meta to pay $567 million?

The court found that Meta's platforms—Facebook and Instagram—constitute a **"public nuisance"** in New Mexico and that the company's product design contributed to a youth mental health crisis. The money will fund treatment services, prevention programs, and other measures for children harmed by social media .

### Q: Does this ruling affect users outside New Mexico?

The ruling applies specifically to **New Mexico residents**. However, the changes to Meta's platforms—such as default private accounts, hidden "like" counts, and notification restrictions—are being implemented for New Mexico users only. Meta has not indicated it will extend these changes nationwide .

### Q: What is Meta's total financial exposure in this case?

Meta has now been ordered to pay a **total of $942 million** in New Mexico: $375 million in civil penalties from the March jury verdict plus $567 million in the August ruling .

### Q: Will Meta appeal the ruling?

Yes. Meta has stated it "disagrees with the ruling" and "will appeal." The appeals process is expected to take months or years .

### Q: What changes will Meta make to its platforms?

Meta must implement several changes for New Mexico users, including: a 90-hour monthly time limit for users under 18, blocking push notifications during school hours and overnight, setting teen accounts to private by default, and hiding public "like" counts .

### Q: Why didn't the court order Meta to implement age verification?

The court noted that federal children's privacy laws (COPPA) prevent Meta from requiring children under 13 to submit personal data for age verification. The court also said singling out Meta for such requirements would be unfair when other platforms don't have to comply .

### Q: What other lawsuits is Meta facing?

Meta faces thousands of lawsuits from families, more than 30 states, and school districts across the country. A major federal trial is set to begin in Oakland, California, later this month, where four states will argue that Meta knowingly designed features that addict children to its platforms .

### Q: What does this mean for other social media companies?

The ruling could set a precedent for lawsuits against other platforms like TikTok, Snap, and YouTube. More than 30 states are already pursuing similar claims, and the "public nuisance" theory used in this case could be applied to other companies .

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## Conclusion: A Reckoning for Social Media

The New Mexico ruling against Meta represents a turning point in the battle over social media's impact on children. For the first time, a court has held that a social media company's product design can constitute a **"public nuisance"**—a finding that opens the door to similar lawsuits against other platforms .

The $567 million judgment and the sweeping changes to Facebook and Instagram signal that courts are no longer willing to accept the argument that platforms are merely neutral conduits for content. Instead, they are being held accountable for how their products are designed and how those designs affect young users .

As Attorney General Torrez put it: "For years, Meta knew its platforms were harming New Mexico's kids, from feeding a youth mental health crisis to connecting predators with children, and it chose engagement and profit over their safety. Today, Meta is paying for that choice" .

The decision is likely to reverberate far beyond New Mexico. With more than 30 states pursuing similar lawsuits and a major federal trial set to begin later this month, the era of unaccountable social media giants may be coming to an end.

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## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, legal, or professional advice. The information contained herein is based on publicly available sources as of August 8, 2026. The ruling is subject to appeal and may be modified, overturned, or otherwise affected by the legal process. You should consult with a qualified legal professional for guidance on specific legal issues.

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*Published: August 8, 2026*

-Read more--

**Tags:** Meta, Facebook, Instagram, Mark Zuckerberg, New Mexico, child mental health, social media addiction, public nuisance, youth safety, lawsuit, $567 million, Raúl Torrez, age verification, teen accounts, Section 230, social media regulation, technology law, child online safety, mental health crisis, online harm

The $32 Billion Question: Greg Abel Finally Starts Spending Berkshire's Record Cash Pile

 The $32 Billion Question: Greg Abel Finally Starts Spending Berkshire's Record Cash Pile

## Berkshire's new CEO just made his first major move, deploying billions in buybacks and stock purchases while doubling quarterly profits. Here's what it means for investors.

---

### Introduction: The End of the Cash Hoard

For years, Berkshire Hathaway shareholders have asked the same question: when will the company finally spend its mountain of cash? Under Warren Buffett, the conglomerate's cash pile ballooned to a record **$397.4 billion**, as the 95-year-old investor struggled to find attractive valuations in an expensive market. Buffett was patient, even as critics called him too cautious.

That era is over.

Greg Abel, who took over as CEO in January 2026, is already putting his stamp on the company. In his first full quarter at the helm, Abel led Berkshire to deploy **$31.9 billion** of its cash hoard, bringing the pile down to **$365.5 billion**. The moves included nearly **$20 billion in net stock purchases**, **$4.5 billion in share buybacks**, and a **$6.8 billion acquisition** of homebuilder Taylor Morrison.

Berkshire's second-quarter results were equally impressive. Net income **more than doubled to $25.67 billion**, fueled by a **$12.68 billion investment gain**. Operating earnings rose **16% to $12.98 billion**, beating Wall Street expectations.

The numbers are clear: Abel is not waiting. He's spending.

---

### The Numbers That Matter: A Quarter of Action

| Metric | Q2 2026 Result | Change |

|--------|----------------|--------|

| **Net Income** | $25.67 billion | **+107%** YoY |

| **Operating Earnings** | $12.98 billion | **+16%** YoY |

| **Share Buybacks** | $4.5 billion | Up from $235M in Q1 |

| **Net Stock Purchases** | ~$20 billion | First net buyer in 14 quarters |

| **Cash Position** | $365.5 billion | Down from record $397.4B |

| **Investment Gains** | $12.68 billion | Drove profit surge |

*Sources:*

Berkshire's operating businesses performed well across the board. Manufacturing, service, and retailing earnings jumped **24% to $4.47 billion**, while Berkshire Hathaway Energy's profit surged **27% to $891 million**. BNSF railroad posted a **6% increase to $1.56 billion**.

Insurance was a weak spot. Underwriting earnings fell **13% to $1.73 billion**, and insurance investment income declined **9% to $3.06 billion**. But the strength across other segments more than offset the insurance drag.

---

### Abel's Playbook: Three Moves, One Strategy

#### 1. Share Buybacks: A $4.5 Billion Signal

Berkshire repurchased approximately **$4.5 billion** of its own shares during the second quarter. The move marked a sharp acceleration from the **$235 million** spent in the first three months of 2026, though it fell slightly short of some expectations.

"We only repurchase shares when Abel and Buffett believe they are selling for less than they are worth," the company has stated. In the first quarter, Abel said Berkshire was restarting buybacks because executives found the "intrinsic value" of those shares exceeded their market price.

The buyback signal is significant. Berkshire's Class B shares have rallied **9.6% over the past three months**, outperforming the S&P 500's 4.9% gain. The shares are now trading above the weighted average price Berkshire paid for its repurchases: Class A shares closed at $780,085.97 on Friday, **6.7% above** the repurchase price, while Class B shares closed **7.4% above**.

Berkshire previously repurchased **$78 billion** worth of its own stock between 2018 and 2024.

#### 2. Stock Portfolio: A $20 Billion Reversal

Berkshire became a **net buyer of equities in the second quarter** for the first time in more than three years. The conglomerate had been a net seller of stocks for **14 consecutive quarters** before the latest period.

The company made nearly **$20 billion in net stock purchases** during the quarter. The largest disclosed investment was a **$10 billion addition** to Berkshire's stake in Alphabet (Google's parent company), which Abel pursued after consulting with Buffett.

**Alphabet is now among Berkshire's top five equity holdings**, joining longtime positions in American Express, Apple, Bank of America, and Coca-Cola.

Berkshire's report suggested it added more than **$24 billion worth** of commercial, industrial, and other stocks to its portfolio, but the earnings report doesn't name all the stocks it bought. That will be revealed in a separate 13-F filing due around August 14.

#### 3. Whole Company Acquisitions: The $6.8 Billion Homebuilder Bet

Abel's most decisive move was the acquisition of **Taylor Morrison Home Corp.** for **$6.8 billion** in equity value. The deal, announced in May and completed in July, represents a classic value bet on the U.S. housing market.

Buffett praised Abel's dealmaking abilities: **"Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO. He has launched"**.

The acquisition closed on July 24 and will be reflected in Berkshire's third-quarter results.

Abel also completed the purchase of **OxyChem from Occidental Petroleum for $9.7 billion** in January, a deal started when Buffett was still CEO.

---

### The Shift: Whole Companies Over Stocks

Under Abel, Berkshire appears to be shifting its focus from buying stocks to buying whole businesses. He spent **$6.8 billion** on Taylor Morrison and inherited the **$9.7 billion** OxyChem deal—far more than the under **$3 billion** he spent on new stock positions (excluding Alphabet) in deals he worked himself.

This strategy has significant implications for shareholders. When Berkshire buys a whole company, its financials get folded into Berkshire's operating results. Shareholders gain from operating performance rather than portfolio moves. It also removes some optionality—you can trade stocks for cash more easily than sell companies.

"Although it's only been one quarter, and it's too early to say this will be Abel's pattern, it dovetails with this model of sticking to bigger plays with greater concentration," Nasdaq noted. "Shareholders may see more of this activity driving the company's work."

---

### The Human Element: What This Means for Investors

#### For Berkshire Shareholders

The Abel era is off to a promising start. He has shown a willingness to deploy capital, a clear departure from Buffett's later years of caution. The $4.5 billion in buybacks and $20 billion in stock purchases demonstrate that Abel is serious about putting cash to work.

Abel appears "more focused on operations and putting Berkshire's enormous cash reserves to work," Bloomberg Intelligence noted, "marking an early shift from Warren Buffett's final years at the helm".

#### For the Broader Market

Berkshire's decision to become a net buyer of stocks after 14 quarters of selling could be a signal to other large investors. If Abel sees value in the market, others may follow.

#### For Value Investors

The Taylor Morrison acquisition is a classic value bet—a homebuilder trading at a discount to its intrinsic value. Abel is signaling that he will continue Buffett's tradition of buying undervalued businesses.

---

### Frequently Asked Questions

**Q: How much cash does Berkshire still have?**

A: Berkshire's cash position declined to **$365.5 billion** at the end of June from a record **$397.4 billion** in the first quarter. The company deployed $31.9 billion in the second quarter through buybacks, stock purchases, and acquisitions.

**Q: What stocks did Berkshire buy?**

A: The largest disclosed purchase was a **$10 billion addition** to Alphabet (Google parent). The company made nearly $20 billion in net stock purchases overall. A complete list will be disclosed in a 13-F filing around August 14.

**Q: Why is Berkshire buying back so much stock?**

A: Berkshire only repurchases shares when CEO Greg Abel and Chairman Warren Buffett believe the price is below the company's intrinsic value. Abel said earlier this year that Berkshire found the "intrinsic value" of its shares exceeded their market price.

**Q: How did Berkshire's businesses perform?**

A: Operating earnings rose **16% to $12.98 billion**, driven by a **24% jump** in manufacturing, service, and retailing, a **27% surge** in energy profits, and a **6% increase** at BNSF railroad. Insurance was weaker, with underwriting earnings down 13%.

**Q: Is Greg Abel different from Warren Buffett?**

A: Yes. Abel appears "more focused on operations and putting Berkshire's enormous cash reserves to work," Bloomberg Intelligence noted. He has shown a willingness to deploy capital more aggressively, including the $6.8 billion Taylor Morrison acquisition and $4.5 billion in buybacks.

**Q: Is Berkshire stock a buy?**

A: Berkshire's Class B shares are trading at $521.80, above a **$512.58 buy point** from a cup-with-handle base. The stock has risen 9.6% over the past three months but is still up just 3.8% year-to-date, underperforming the S&P 500's 13% gain.

---

### Conclusion: The Abel Era Begins

Greg Abel's first full quarter as Berkshire CEO was a statement of intent. He deployed $31.9 billion, repurchased $4.5 billion in shares, became a net buyer of stocks for the first time in more than three years, and completed a $6.8 billion acquisition—all while delivering a 107% profit surge.

The shift is significant. Under Warren Buffett, Berkshire's cash pile grew to nearly $400 billion as the legendary investor struggled to find attractive valuations. Abel is not waiting. He is spending, buying, and deploying capital with a decisiveness that marks a new era.

"The results give Abel credibility and time," one analyst said. "But the company will have to keep producing exceptional numbers to justify its valuation."

Halfway through his first year at the helm, Abel has already done what Buffett hadn't done in years: put the cash to work. The question now is whether the investments will pay off.

---

### Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Market conditions, stock prices, and company performance are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not constitute a recommendation to buy or sell any security.

---

*Published: August 8, 2026*

---

**Tags:** Berkshire Hathaway, Greg Abel, Warren Buffett, BRK.B, BRK.A, stock buybacks, Taylor Morrison, Alphabet, AI investment, cash pile, operating earnings, investment gains, value investing, Omaha, conglomerate, earnings season

The Jobs Report That Confused Everyone: -23,000 Jobs, But Unemployment Fell to 4.1%

 

The Jobs Report That Confused Everyone: -23,000 Jobs, But Unemployment Fell to 4.1%

## The headline number was weak, but the unemployment rate dropped. Here's what the July jobs report really tells us about the labor market.

---

### Introduction: A Report That Defies Easy Explanation

The July jobs report, released on August 7, 2026, was a study in contradictions. The U.S. economy added **-23,000 nonfarm payroll jobs**—a disappointing miss that fell well short of the 60,000 expected by economists . Yet the unemployment rate **ticked lower to 4.1%**, down from 4.2% in June, in a sign that the labor market may not be as weak as the headline suggests .

The paradox is explained by a single variable: **fewer people were actively looking for work**. The labor force participation rate fell to **61.4%** —its lowest level since March 2021 and the third consecutive monthly drop, now down 1.2 percentage points from a year ago . That decline in participation was the main reason the unemployment rate fell, even as the economy shed jobs.

**Which number tells the real story?** The answer may be both.

---

### The Numbers That Matter: A Closer Look

#### Headline Employment: -23,000 Jobs

Nonfarm payrolls contracted by 23,000 in July, marking the third negative print for employment in the past five months . The decline was broad-based, with leisure and hospitality posting its second straight month of job losses, shedding 61,000 positions . Construction, financial activities, and government hiring also weakened.

#### Unemployment Rate: 4.1%

Despite the job losses, the unemployment rate fell from 4.2% to 4.1% . The primary driver was a **drop in the labor force participation rate**, which fell to 61.4% . That decline means about **720,000 people left the labor force** in June, and the trend accelerated in July as participation fell further .

#### Wages: Still Growing

Average hourly earnings rose **0.2%** month-over-month and **3.2%** year-over-year, the smallest annual increase since November 2024 . While wage growth is moderating, it still outpaces inflation and supports consumer spending.

#### The Establishment vs. Household Survey Gap

The establishment survey (which counts jobs) showed a net loss of 23,000 jobs. The household survey (which counts people) showed a **loss of 140,000 jobs** . That's a significant divergence, and it suggests the labor market may be weaker than the payroll number alone indicates.

### Why the Confusion?

The report reflects a labor market that is cooling but not collapsing. Employers are hiring less, but they're not laying off in large numbers either . The drop in the labor force participation rate has removed some of the slack that might have otherwise pushed up the unemployment rate.

**The "break-even" number** —the amount of job growth needed just to keep up with working-age population growth—is now effectively zero to 50,000 due to tighter immigration controls . This means even a weak jobs number like -23,000 might not signal an imminent recession.

---

### The Human Element: What This Means for Workers

**For job seekers:** The job market is cooling, but it's not collapsing. The 23,000 job loss is still within the "break-even" range, and layoffs remain historically low . However, you may face more competition—the household survey showed 140,000 fewer people at work, meaning many have simply stopped looking.

**For workers:** Wage growth is moderating but still positive at 3.2% . That's roughly in line with inflation, meaning your spending power is holding steady, though not rising as fast as it did in 2024 and 2025.

**For consumers:** The weaker jobs data, combined with falling oil prices, is good news for inflation. Lower energy costs are already showing up in gasoline prices, and if the labor market stays cool, the Federal Reserve may be able to hold rates steady. That's good news for mortgage rates, auto loans, and credit card debt.

---

### The Fed's Dilemma

The jobs report lands right in the middle of a heated debate at the Federal Reserve about whether to raise interest rates again.

**The case for a pause:** The cooling jobs data, combined with falling oil prices and easing inflation fears, gives the Fed room to hold steady . The "break-even" jobs number is now near zero to 50,000, meaning 23,000 in job losses may still be enough to keep the labor market stable.

**The case for a hike:** The unemployment rate is still low at 4.1%, and wage growth is running at 3.2% . Fed officials like Cleveland Fed President Beth Hammack have warned that inflation is "still too high" and that she'll advocate for higher rates if inflation pressures don't ease.

**The current market pricing:** According to the CME FedWatch Tool, the probability of a rate hike at the September 15-16 meeting is now roughly **29%**, down from 31% before the jobs report . Most analysts believe the Fed will hold rates steady.

---

### Frequently Asked Questions

**Q: Why did the U.S. lose 23,000 jobs in July 2026?**

The decline was broad-based, with leisure and hospitality shedding 61,000 positions—its second straight monthly loss—after a World Cup hiring surge failed to materialize. Construction, financial activities, and government hiring also weakened. The overall number also reflected weaker-than-expected hiring across most sectors .

**Q: Why did the unemployment rate drop if hiring was weak?**

The unemployment rate fell from 4.2% to 4.1% because **fewer people were actively looking for work**. The labor force participation rate dropped to 61.4%, its lowest level since March 2021 .

**Q: What is the "break-even" number?**

The "break-even" number is the amount of job growth needed just to keep up with working-age population growth. It is now effectively zero to 50,000 due to tighter immigration controls, meaning 23,000 in job losses may still be enough to keep the labor market stable .

**Q: Will the Fed raise interest rates in September or later?**

The jobs report weakened the case for an immediate rate hike. Market expectations for a hike this year were scaled back, with the probability of a September rate hike falling to roughly 29% . However, Fed officials remain divided, with some citing low unemployment and steady wage growth as reasons to stay hawkish.

**Q: Is this the start of a recession?**

Not yet. The 23,000 job loss is still at the high end of the "break-even" range needed to keep up with working-age population growth. Layoffs remain historically low, and consumer spending is still solid. Economists describe this as a "Goldilocks scenario"—slowing growth, but not a collapse.

**Q: What sectors grew in July?**

Professional and business services added 36,000 jobs. Social assistance added 25,000, and health care added 22,000. Government added 8,000 jobs .

---

### Conclusion: A "Goldilocks" Scenario

The July jobs report is a clear signal that the U.S. labor market is cooling. Hiring is slowing, the labor force is shrinking, and the World Cup didn't deliver the hospitality boom everyone expected.

But a cooling labor market is not a collapsing one. The -23,000 figure is still within the "break-even" range needed to keep up with working-age population growth, and layoffs remain historically low. Wage growth is steady, and consumer spending is still solid.

For the Federal Reserve, this report provides cover to hold rates steady, while keeping the option of a hike on the table if inflation re-accelerates. For American workers, it's a reminder that the era of "free money" and easy job hopping may be coming to an end—but that a more sustainable, less inflationary economy may be taking its place.

The question now is whether the second half of 2026 will bring a rebound in hiring as oil prices stabilize and the World Cup ends, or whether this is the beginning of a longer slowdown.

---

### Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or professional advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Economic data, employment figures, and Federal Reserve policies are subject to revision and change. You should consult with a qualified financial advisor before making any investment decisions.

---

*Published: August 8, 2026*

---

**Tags:** July jobs report, US payrolls, unemployment rate, labor force participation, Federal Reserve, interest rates, nonfarm payrolls, BLS jobs report, employment data, economy, wage growth, job market, recession fears, economic indicators, Fed rate decision

Jetstar Just Made Overhead Bins Pay-to-Play. Here's What Travelers Need to Know.

Jetstar Just Made Overhead Bins Pay-to-Play. Here's What Travelers Need to Know.

**The Australian budget airline is introducing a "Priority Carry-On" fee, charging passengers up to $37 to use the overhead lockers. It's a move that could reshape how budget airlines operate—and what travelers should expect to pay for.**

---

## The "Unbundled" Flight Just Got Smaller

Flying on a budget airline has always involved trade-offs: you pay for checked bags, you pay for seat selection, you pay for snacks. But the overhead bin has been one of the last remaining free amenities—the spot where you can stash your carry-on without paying an extra fee.

Not anymore. On August 5, 2026, Jetstar, the Australian budget carrier owned by Qantas, announced that starting February 2027, passengers will have to pay a fee to store a bag in the overhead compartment. The airline will replace its free 7kg carry-on weight limit with a "pay-as-you-go" model .

**The new rules:**

- **Free allowance:** One small underseat bag (max size 40 x 30 x 20cm) roughly the size of a laptop bag or small backpack .

- **Overhead bag fee:** Passengers who want a larger carry-on (up to 56 x 36 x 23cm) must purchase "Priority Carry-on," which also grants early boarding privileges .

- **Dynamic pricing:** The fee varies by route and demand, starting at $25 (AUD) and climbing to $52 or more .

| Route | Starting Price (AUD) |

| :--- | :--- |

| Launceston to Sydney | $25 |

| Adelaide to Brisbane | $26 |

| Sydney to Melbourne | $33 |

| Perth to Bali | $39 |

| Cairns to Tokyo | $52 |

*Source: *

## Why the Change?

Jetstar says the move is designed to improve "on-time departure performance" and reduce boarding delays . "Too many customers are bringing large bags into the cabin, which increases the time it takes to board," the airline said. "It's slowing down the process and affecting our ability to get flights away on time."

The new model is designed to encourage passengers to check their bags rather than carry them on, which could speed up boarding. But for travelers, it's a hard-hitting shift in what they can expect to get for free.

CEO Stephanie Tully framed the policy as a choice: "You only pay for what you need—travelling with less means paying less, and you can always add more if you need" .

## The Mixed Reactions

The announcement has sparked a wave of criticism from travelers who see the move as a "cash grab" . Some fear that Jetstar's base fares will no longer reflect the true cost of flying. Social media users have been vocal, with one commenter sarcastically asking, "Minimum of A$25 to use an overhead locker in the plane. What next? A fee to use the toilet?"

But the policy may be welcomed by light travelers who only carry a small bag and won't be paying for overhead space they don't use . Aviation expert Tony Stanton noted, "Passengers may eventually treat the overhead charge in the same way they currently treat charges for checked baggage, meals and seat selection" .

## The Larger Context: Budget Airlines and the "Unbundling" Trend

Jetstar's move is the latest in a long-running trend in the airline industry: unbundling. Budget airlines have been stripping out "free" extras for years, charging for everything from checked bags to seat selection to snacks. The overhead bin is now the latest line item to be monetized .

If the policy is successful, competitors like Qantas' own low-cost subsidiary might follow suit. But full-service carriers like Qantas are unlikely to adopt a policy that would alienate business and premium travelers.

## What This Means for U.S. Travelers

For U.S. travelers used to the somewhat generous "one carry-on + one personal item" model on domestic airlines, Jetstar's policy is a reminder that budget airlines operate on a different plane of existence. Here are the key takeaways:

- **Check before you book:** If you're flying Jetstar, factor the potential overhead bag fee into your total cost.

- **Pack light:** If you can fit everything into an underseat bag, you'll avoid the fee.

- **Book early:** The dynamic pricing means the fee could be higher if you wait to add it at the airport.

## What Jetstar Says

A Jetstar spokesperson defended the move: "The new policy also means that we will be able to get our flights into the air more quickly and keep our fares as low as possible".

The airline claims the new model gives passengers more choice. "It gives customers more options and will remove unnecessary steps from the check-in process, and it means faster boarding and fewer delays," the spokesperson said . They also noted the new approach would make it easier for passengers to board more quickly "because they won't have to queue to get their carry-on bags weighed and tagged, before then carrying them down the jet bridge to the plane".

## Frequently Asked Questions

**Q: Can I still bring a carry-on bag on Jetstar for free?**

A: No. Effective February 2027, you will need to purchase "Priority Carry-on" to bring a larger bag into the cabin. Only a small underseat bag (40 x 30 x 20cm) is free.

**Q: How much does the Priority Carry-on fee cost?**

A: The fee is dynamic, varying by route and demand. It starts at $25 (AUD) for short routes and can exceed $52 for longer international flights .

**Q: Does Priority Carry-on include early boarding?**

A: Yes. The fee includes early boarding privileges, giving you access to the overhead bins before other passengers.

**Q: Is this just for Jetstar, or will other airlines follow?**

A: Jetstar is the first airline to implement a blanket charge for overhead bag storage. If the policy is successful, other budget airlines may consider similar models.

**Q: What if my flight was already booked for travel after February 2027?**

A: Existing bookings are grandfathered in. If you booked before the announcement, your overhead bag will be included at no extra cost .

**Q: Can I pay for Priority Carry-on at the airport?**

A: Yes, but it's likely to be more expensive than booking in advance. The dynamic pricing means fees can rise as departure approaches.

## Conclusion

Jetstar's decision to charge for overhead bin space is a significant shift in the budget airline model. It signals that even the last remaining free amenities are now up for grabs in the relentless drive to unbundle the flying experience. Whether other airlines follow suit remains to be seen, but one thing is clear: the era of "free" flying is over, and the overhead bin is now another line item on the receipt.

---

## Disclaimer

**IMPORTANT:** This article is for informational purposes only. Airline policies, routes, and fees are subject to change without notice. Always verify luggage restrictions and pricing directly with the airline before booking. This article is not financial, investment, or travel advice. You should consult with qualified professionals for guidance on specific travel or financial decisions.