A new report reveals Michigan's corporate incentive program under Governor Gretchen Whitmer has fallen dramatically short of its promises. Since 2019, the state authorized $6.9 billion in business subsidies, with eight major projects totaling $2.7 billion in promised incentives. These initiatives were expected to create 20,595 jobs across the state. However, the actual results tell a different story entirely.

James M. Hohman of the Mackinac Center for Public Policy found that only 602 jobs materialized from these investments, representing just 3% of projected employment. Of the $2.7 billion pledged, $1.8 billion has already been spent. The analysis examined major partnerships with automotive giants including Ford, General Motors, and Stellantis, which together received hundreds of millions in taxpayer funds.

Several high-profile deals collapsed or underperformed. A $666 million GM joint venture with LG Energy Solution saw the automaker abandon part of the agreement. Ford reduced its job estimates from 2,500 to 1,700 while creating zero positions to date. Most strikingly, Sandisk received $261 million in incentives before pulling out of a proposed semiconductor facility that would have brought 7,400 jobs.

Hohman concluded that selective business subsidies fail to drive meaningful economic growth, with each created job costing Michigan taxpayers nearly $3 million. The findings reinforce broader concerns about government effectiveness in picking commercial winners, suggesting these marquee deals rarely achieve announced outcomes.