Great Lakes Wire

Legislation aimed at phasing out the Michigan Economic Development Corporation (MEDC) was announced by key House Republicans on Wednesday. The proposed bills would end the state Strategic Fund’s authority to participate in interlocal agreements, a mechanism seen as central to MEDC’s existence.

House Oversight Committee Chair Jay DeBoyer (R-Clay) and Rep. Steve Carra (R-Three Rivers), who leads the House Corporate Subsidies and State Investments Subcommittee, are leading this effort. They cited concerns about MEDC’s job creation record despite significant financial incentives provided to businesses over two decades.

The lawmakers referenced a 2024 Mackinac Center report that found only 10,889 jobs materialized from the 123,060 promised through 41 economic development projects involving incentives and grants between 2000 and 2020.

“I think the experiment is over,” said DeBoyer. “I would say collectively our caucus has come to the determination that the experiment of MEDC and (the Strategic Outreach and Attraction Fund) has failed.”

DeBoyer also noted data from Bridge Michigan showing that from 2019 to 2024, nearly $2.5 billion was offered in incentives with an outcome of about $1 billion spent and 13,089 jobs created, averaging $76,400 per job.

“You have to remember that these are taxpayers’ dollars,” he said. “These are hard-working taxpayers. These are single mothers. There are married couples, and we’re taking their tax dollars, and we’re writing bribery checks to corporations to convince them to come to Michigan and to develop their business here.”

The MEDC was established in 1999 through an executive order by then-Governor John Engler using interlocal agreements authorized by the state Strategic Fund. The new bills seek not to repeal laws but rather end MSF’s ability to create such agreements.

Several Republican representatives stood with DeBoyer and Carra during their announcement. This move follows a similar legislative package introduced recently by Sen. Thomas Albert (R-Lowell). Meanwhile, state leaders are discussing new economic development initiatives as resistance grows against continuing the SOAR Fund.

According to information from MEDC, its programs helped train or place more than 5,950 workers and over 1,480 interns in jobs during Fiscal Year 2025; it also reported assisting more than 2,000 new business startups and facilitating roughly $2.77 billion in new small business revenue.

On the same day as the legislative announcement, MEDC publicized a business expansion project by Miller Industries in Fenton valued at $43 million with plans for 167 new jobs offering starting pay of $25 per hour plus benefits. The company received a $1 million performance-based grant under the Michigan Business Development Program for this project; Fenton Township approved industrial property tax abatements worth $6 million over twelve years.

Additionally, the Michigan Strategic Fund recently approved a $133 million project with American Axle located in Carra’s district. In July of this year, CNBC ranked Michigan sixth nationally on its America’s Top States for Business list—its highest position yet.

“At a time when Michigan is landing record job-creating investment, including in Rep. Carra’s district, we should keep our foot on the gas, not throw everything into reverse,” stated Bobby Leddy, Director of Communications for Governor Gretchen Whitmer. “The Republican plan would put a ‘closed for business’ sign at Michigan’s border with Ohio and Indiana, killing good-paying jobs and shuttering small businesses across the state."

“These bills are a waste of time, and they are dead on arrival," Leddy added. "The Governor has her veto pen ready to prevent these bills from destroying the economy.”