Michigan Group Pushes to Defund State’s Economic Development Agency

Critics say the MEDC funnels taxpayer money to politically connected projects, while supporters argue it drives jobs and investment in Michigan.

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LANSING, Mich. — A grassroots group on Michigan’s west side is raising concerns about how the state’s top economic development agency spends taxpayer money, arguing that the Michigan Economic Development Corporation (MEDC) has shifted away from its original mission and operates with little accountability.

Marjorie Steele, founder of the Economic Development Responsibility Alliance of Michigan (EDRA), told Keeping It Real that her organization formed in 2023 to fight for responsible economic growth. She said that mission has increasingly led members into environmental and taxpayer-protection issues.

“We like drinking clean water and having clean air and having soil that is capable of nourishing and feeding us here locally,” Steele said. “It really comes down to that.”

The MEDC, created in the 1990s and rooted in the Michigan Strategic Fund established in 1984, describes itself as the state’s economic development corporation dedicated to promoting business growth, building resilient communities, and supporting Michigan’s workforce. It oversees programs such as the Michigan Business Development Program, which offers grants, loans and other incentives for companies that create jobs and invest in the state.

Steele questioned whether the agency has strayed from those goals under recent administrations, saying it now acts more like a venture capital fund, steering taxpayer and private dollars toward favored corporations and large-scale projects such as proposed electric vehicle battery plants. She pointed to projects in Big Rapids and Marshall, along with past efforts to subsidize film production, as examples where promised jobs failed to materialize.

The MEDC says it also supports local governments, nonprofits and development organizations through community revitalization programs such as Redevelopment Ready Communities and Michigan Main Street. Agency leaders argue their work helps attract investment, grow jobs and showcase the state through initiatives like the Pure Michigan campaign.

But Steele and other critics say the system is “designed to be complex so that we don’t understand it, so that we don’t protest against it.” She backs legislation introduced by Sen. Thomas Albert, R-Lowell, that seeks to dismantle the Strategic Outreach and Attraction Reserve fund, a key financing tool for large projects, and redirect unspent dollars back to the state’s general fund.

As Michigan heads toward the 2026 elections, Steele believes debate over the future of the MEDC will be central. “This is going to be a key point of leverage,” she said. “Regardless of what side of the political aisle you fall on, this is critical for everyone to put pressure on all of our legislators.”