Michigan lawmakers push to overhaul the Michigan Economic Development Corporation, citing wasted funds, poor results, and calls for greater accountability.
LANSING, Mich. — State Sen. Thomas Albert, R–Lowell, is mounting a fresh push to dismantle the Michigan Economic Development Corporation (MEDC), a powerful state agency that has overseen billions in economic subsidies but, according to critics, has failed to deliver the promised results.
Albert on July 29 reintroduced a package of bills aimed at repealing the Strategic Outreach and Attraction Reserve (SOAR) Fund, a $1 billion subsidy program launched in 2021 and administered by MEDC. His plan would redirect unspent SOAR dollars to Michigan’s general fund for road repairs, tax relief, or other public priorities.
Michigan Economic Development Corporation Under Scrutiny for Missed Goals
The MEDC oversees Michigan’s high?profile incentive packages, including SOAR. Supporters once claimed SOAR would attract major employers and generate tens of thousands of jobs. But a Mackinac Center for Public Policy review found SOAR awarded roughly $670 million with no verified job creation as of mid?2025.
A Bridge Michigan analysis reported that nearly $1 billion in incentive spending under Governor Gretchen Whitmer has produced only 20% of the promised jobs, at a cost of more than $76,000 per position.
Albert argues these numbers prove the MEDC model is broken. “Corporate welfare and the MEDC are failing miserably,” he said. “It’s been one disaster after another, and Michigan taxpayers deserve much better.”
Proposed Legislation Would Ban Secrecy in Economic Deals
Albert’s legislation, Senate Bills 486 through 491, would ban nondisclosure agreements for state and local elected officials involved in publicly funded economic development projects. MEDC has used NDAs in the past for major corporate incentive deals, limiting transparency.
Albert himself signed such an agreement when chairing the House Appropriations Committee but rescinded it in early 2023, calling it unnecessary and harmful to public trust. His bills would also require ongoing evaluations of approved incentive projects under the Economic Development Incentive Evaluation Act, legislation he authored in 2018.
Bipartisan Concerns Over Michigan Economic Development Corporation Performance
Criticism of MEDC’s incentive strategies extends across party lines. Democratic Sen. Mallory McMorrow, D–Royal Oak, has questioned whether SOAR and similar programs prioritize corporate subsidies over sustainable community investment.
Members of the House Oversight Committee have also expressed concerns about how MEDC measures success and whether the public receives a fair return on these large investments.
Expert Voices Say MEDC Incentives Rarely Deliver Promised Jobs
James Hohman, fiscal policy director at the Mackinac Center, says the incentive model often rewards companies for investments they would have made without subsidies. “It allows companies to cash in on taxpayer subsidies without having to create jobs,” he said.
Policy analysts have urged lawmakers to replace MEDC’s corporate subsidy programs with infrastructure investments and broad?based tax reforms that benefit all Michigan employers equally.
Michigan Communities Could Benefit From Redirected Funds
Albert’s plan envisions shifting funds away from opaque corporate deals and toward visible public improvements. That could mean repaving rural roads in the Thumb, repairing Detroit’s urban highways, or easing tax burdens for residents and small businesses statewide.
“This isn’t about being anti?business,” Albert said. “It’s about making Michigan competitive for everyone, not just a handful of well?connected corporations.”
Legislative Road Ahead for Michigan Economic Development Corporation Reform
The bills now head to Senate committee hearings in the fall. If passed, they would mark one of the most significant changes in Michigan’s economic policy in decades, potentially dismantling the MEDC’s current structure and redistributing its programs under agencies with tighter oversight.
Public opinion on the MEDC’s future could be shaped by ongoing controversies, including the Gotion Inc. battery plant deal, where questions about cost, environmental impact, and foreign investment have sparked bipartisan criticism.
Related coverage
– “Michigan lawmakers eye changes to corporate incentives after Bridge report” (bridgemi.com)
– “Whitmer subsidy record: Companies get $1 billion; jobs fall short of promises” (bridgemi.com)
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