Both parties have expressed concerns about Michigan Gov. Gretchen Whitmer’s $250 million overhaul of the Strategic Outreach and Attraction Reserve Fund.
The fund was first established in 2021 as a response to Ford Motor Co. relocating its major manufacturing operations to Kentucky and Tennessee, and has since doled out $1.7 billion to both Ford and General Motors Co. in an effort to move them away from “right to work” states.
Senate Community and Economic Development Committee Chairwoman Mallory McMorrow (D-Royal Oak) called the SOAR fund reactionary during a March floor speech.
“I think sometimes, even with the best of intentions, you have to accept that things aren’t going to go the way you want them to and you have to learn some hard lessons,” McMorrow said.
Michigan Republicans such as Rep. Donnie Steele (R-Orion Township) have criticized SOAR spending as corporate welfare.
“SOAR is broken, and House Democrats are trying to fix it by shifting funds around to create an equally flawed program with even more specific exceptions,” Steele said.
“If we’re going to offer incentives to businesses, we need to ensure that all Michigan businesses receive equal access to assistance. There’s nothing in this plan that addresses a glaring lack of fairness, oversight and accountability.”
Misfortunes in the electric vehicle industry have exacerbated the problem.
The SOAR fund provided Ford with $1 billion and other tax incentives, but the company had to cut 800 of the 2,500 jobs it planned to employ at its Marshall battery plant.
GM was awarded a $600 million contract by SOAR to build an electric truck factory, but production has been delayed until late 2025.
“It seems like every day we hear about a taxpayer-funded project that’s smaller in scale and creates fewer new jobs than originally promised,” Steele said.
“But instead of seeking ways to be more effective in their leadership and put taxpayer dollars to better use, Gov. Gretchen Whitmer and Lansing Democrats are finding new ways to just throw money at the wall and see what sticks.”
Democrats like McMorrow argue that Gov. Whitmer could solve the problem by renaming SOAR the “Make it in Michigan Fund” in 2024. Its centerpiece, the Michigan 360 program, would allocate $250 million of SOAR’s funds to local investments.
House Minority Leader Matt Hall, a Republican from Richland Township, has argued for broader reforms, including restoring right-to-work protections against forced unionization and cutting taxes and regulations.
“If you have laid off employees, we want you to take steps to get your funds back,” Hall said.
“I would like to include content that takes into account the fact that not only large companies but also small and medium-sized enterprises should benefit from this.”
