Michigan has spent billions trying to attract businesses with taxpayer-funded incentives. But an economic analysis highlighted this week suggests other investments could deliver greater returns, adding to scrutiny of the strategy after legislative Republicans under House Speaker Matt Hall pushed to end new funding for SOAR, the state’s major corporate subsidy program.

Michigan Advance reported that economist Tim Bartik’s study found cash-based business attraction incentives generated just 17 cents in additional tax revenue for every dollar spent. Although the study estimated broader economic benefits of $1.75 per dollar, it found potentially stronger returns from helping existing businesses, expanding housing and investing in struggling communities.

The findings challenge an approach that became a centerpiece of Gov. Gretchen Whitmer’s economic agenda, with legislative Democrats supporting continued funding. Critics call these subsidies “corporate welfare”: public money directed toward selected companies in exchange for promised investment and jobs.

Hall proposed putting the expiring $500 million annual SOAR allocation toward road repairs instead. Lawmakers ultimately excluded renewed funding from the fiscal 2026 budget, declining Whitmer’s request for another $500 million.

SOAR originally passed with bipartisan support in 2021, and some Democrats joined Republicans in opposing continued funding. Existing projects and other subsidy programs remained.

The promised jobs have often been slow to arrive. A June Mackinac Center review of eight major subsidy deals counted 602 jobs against 20,595 originally announced after $1.8 billion had been transferred to companies or development agencies. Its tally excluded jobs associated with canceled agreements.

Separately, Bridge Michigan found SOAR recipients created 1,846 jobs in 2025, less than 13% of their multiyear hiring commitments.

The underwhelming results have strengthened calls to spend less on subsidies and called in to question a key element of Michigan Democrats economic agenda heading in to a crucial midterm election.