Michigan spent $1.8 billion on job subsidies that only created 602 jobs, according to a new report .
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Michigan spent $1.8 billion on job subsidies that only created 602 jobs, according to a new report.
Michigan Gov. Gretchen Whitmer authorized $2.7 billion for eight projects that she claimed would be “generational” and create 20,595 jobs.
After $1.8 billion has been spent, those projects have created 602 jobs, or three percent of the promised number, according to the report authored by James M. Hohman, the fiscal policy director of the Mackinac Center for Public Policy.
Each of those jobs costs taxpayers about $3 million.
s2026-08 by scott.mcclallen
The report tracked eight major subsidy deals:
Fiat Chrysler: $109 million was spent to upgrade plants in Detroit and Warren
Over $666 million was spent on General Motors/LG Energy Solutions for site preparation and factory retooling for electric vehicles
Over $100 million was spent on Ford plant upgrades
Over $125 million was spent on a Gotion factory in Mecosta County
Over $200 million was offered to the Our Next Energy facility
Lawmakers authorized $200 million for a paper manufacturer to upgrade its mill in Escanaba.
Michigan authorized over $200 million in subsidies for Ford’s EV plant in Marshall
Lawmakers authorized $250 million to buy and prepare land for an unnamed buyer, which hasn’t come so far.
The report summarized the problem:
“None of these deals have delivered what was originally announced. Two created only vacant fields. Two were canceled altogether. One deal has only a largely unused facility to show for it. Two others merely supported ongoing operations at existing auto plants that did not expand their operations. The most promising developments resulting from these deals are two battery plants that are still under construction but have already reduced their job targets from original expectations.”
Whitmer’s time in office will end in January 2027 because of term limits. After that, she will likely run for president in 2028.
