Capitol News

Senator Thomas Albert has introduced a legislative package aimed at eliminating the Michigan Economic Development Corporation (MEDC) and overhauling the state's approach to economic development. The proposal, consisting of 53 bills, seeks to end several programs associated with corporate incentives and shift certain responsibilities to a new Bureau of Fair Competition and Free Enterprise.

According to Albert, “The MEDC has failed massively and is beyond repair. They have wasted billions of taxpayer dollars on risky corporate giveaways and suspect grants to politically connected recipients. It’s time to shut down the MEDC, retain only those programs with a proven track record, and ensure decision-making for taxpayer-funded projects has accountability.”

The proposed legislation would dissolve the MEDC along with related entities such as the Michigan Strategic Fund, Strategic Outreach and Attraction Reserve Fund, Strategic Site Readiness Program, and the Michigan Film and Digital Media Office. Funds previously allocated to these organizations would be redirected back into the state’s general fund.

A newly established Bureau of Fair Competition and Free Enterprise within the Department of Labor and Economic Opportunity would manage remaining obligations from the MEDC while continuing select initiatives like brownfield redevelopment and renaissance zones. New projects in renaissance zones would face caps of $50 million in funding and 15-year durations, with a sunset clause after five years for reevaluation.

Oversight measures include creating an independent Office of the Chief Compliance Officer. This office would help develop, monitor, and enforce policies intended to prevent illegal or unethical activities related to economic development investments.

Albert emphasized that his plan is designed not only to reduce overspending but also to move economic development efforts away from government control toward private sector leadership. “We cannot continue replacing one failed corporate welfare scheme with another. Michigan has tried that state-directed approach for decades, and it doesn’t work,” Albert said. “We should get government out of the way and instead lower taxes and reduce bureaucracy so Michigan job creators and workers can lead the way to a brighter economic future.”