by: John Clore | 3/24/2025 at 3:47 PM

From State Grant to Campaign Check

How Public Incentives Became Private Political Contributions

LANSING – By following the money trail, a compelling picture emerges of how companies receiving millions in Michigan Strategic Fund (MSF) grants also contribute thousands to key political figures and committees responsible for economic development funding.

I set out to trace the flow of money from companies awarded state grants to the political campaigns they supported. Using data from the Michigan Economic Development Corporation website under the Michigan Business Development Program Projects
I cross-referenced recipients with campaign contributions listed in the Michigan Campaign Finance Searchable Database.
And this is what I found.

How Are Companies Selected for Michigan Business Development Grants?

Michigan’s Business Development Program (BDP), administered by the Michigan Economic Development Corporation (MEDC), is supposed to be designed to spur job creation and business growth through grants, loans, and other economic incentives. However, the process for determining which companies receive funding is highly selective—and at times, politically charged.

To qualify, a company typically must:

  • Propose a job creation or retention project within Michigan

  • Demonstrate a need for the incentive (i.e., risk of losing the opportunity to another state)

  • Show a return on investment to the state in terms of wages and tax revenue

  • Undergo review and approval by the Michigan Strategic Fund (MSF) Board, which often considers recommendations from the MEDC

The grants are awarded frequently throughout the year, with new awards approved at monthly MSF Board meetings. Projects often include facility expansions, new construction, equipment upgrades, or relocations.

However, I have concerns about the transparency and accountability of the grant process. Some companies receive millions in incentives with minimal long-term oversight, and public records do not always clarify how economic benefits are measured after funds are distributed.

 

 

Key Findings:

  • At least 10 companies that received state economic development funds through the MSF also donated to political campaigns.

  • Some of the largest donors also benefited from multi-million-dollar grants, sparking questions about potential pay-to-play dynamics.

  • Recipients of these funds donated to state officials, including those on the House and Senate Appropriations Committees, which approve economic development budgets.

Click to Enlarge

Case Profiles:

1. Magna International of America

  • Donated: $15,000

  • Top Recipient: Gretchen Whitmer For Governor

  • Grant Value: Over $10 million for EV expansion

2. Alticor Inc (Amway)

  • Donated: $11,000

  • Top Recipient: Gretchen Whitmer For Governor

  • Grant Use: Facility modernization

3. Pfizer PAC

  • Donated: $12,000

  • Recipients: BRYAN POSTHUMUS, BILL SCHUETTE, MATT HALL

  • Grant Use: Biotech manufacturing incentives

Click to Enlarge

The Influence Question

These donations create a feedback loop, where companies feel incentivized to give politically after receiving public funds—or vice versa.

We need to call for:

  • Reforms in grant approval processes

  • Donation disclosure requirements

  • Ethics reviews of donor-grant timelines

In 2024, the Michigan Strategic Fund (MSF) awarded approximately $238 million in grants through various economic development programs, including the Michigan Business Development Program (MBDP) and others administered by the Michigan Economic Development Corporation (MEDC).

This funding was distributed across dozens of projects. The grant amounts varied by project.

Conclusion

The intersection of public investment and private influence raises serious questions about the integrity of Michigan’s economic development programs. While performance-based grants are designed to stimulate job growth and innovation, the pattern of companies receiving multimillion-dollar awards and then funneling money into the campaigns of influential lawmakers cannot be ignored.

This revolving door between state funds and political contributions invites scrutiny. Are these donations a coincidence of civic engagement, or do they represent a pay-to-play culture quietly shaping public policy? As taxpayer dollars continue to fuel private enterprise, Michigan voters deserve transparency, accountability, and assurances that economic development decisions are made in the public interest — not as a return on political investment.

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