Rep. Steve Carra has consistently blasted the Michigan Economic Development Corporation (MEDC) for its practice of handing out taxpayer dollars to politically connected companies in the name of economic development while Lansing politicians have historically defended the MEDC.

Now, some surprising voices are raising the same concerns Carra has been talking about for years.

Attorney General Dana Nessel recently suggested the state should consider cutting off funding to the MEDC as investigations into the agency continue. Meanwhile, the Mackinac Center for Public Policy is once again calling to eliminate the MEDC, arguing the agency has a long track record of wasting taxpayer money and failing to deliver on its promises.

Rep. Carra called for exactly that last year when he introduced House Bill 5243, legislation that would abolish the MEDC.

“Taxpayers should not be forced to bankroll special deals for politically connected corporations,” Carra said at the time. “Government should focus on creating an environment where every business can succeed, not picking winners and losers.”

For years, supporters of the MEDC downplayed criticism and insisted the agency was necessary to grow Michigan’s economy. Today, even longtime defenders are struggling to justify the growing list of failed projects, broken promises, and questions surrounding transparency and accountability.

While many people would not expect Dana Nessel to be in agreement on this issue, elected officials on both sides of the aisle are increasingly starting to question corporate giveaways. 

Rep. Carra has consistently argued that Michigan would be better served by lowering taxes, reducing burdens on job creators, and treating all businesses equally instead of giving special tax breaks and funneling taxpayer dollars to a select few companies.

As scrutiny of the MEDC continues to grow, the debate in Lansing is shifting from whether the agency has problems to whether it should continue to exist at all.

Media Coverage

• Dana Nessel suggests the state should consider halting MEDC funding amid ongoing investigations.
• The Mackinac Center renews its call to abolish the MEDC.
• Rep. Steve Carra introduced legislation last year to eliminate the MEDC and end taxpayer-funded corporate welfare.

While others continue to arrive at this conclusion, Rep. Carra has been making the case from the beginning. Michiganders need an economy built on free market prosperity, not a government agency handing out favors to politically connected interests.