Michigan’s Strategic Outreach Attraction Reserve (SOAR) program, touted by Governor Gretchen Whitmer as a game-changer for job creation, has failed to produce any of the promised 8,812 jobs, despite taxpayers footing a $670 million bill. According to a report from the Michigan Economic Development Corporation (MEDC), which oversees the program, not a single "actual qualified job" has materialized.
The funding, approved to boost electric vehicle and renewable energy industries, was allocated to five large corporations, including General Motors, Ultium Cells, and Our Next Energy. While companies received full payments, such as $480 million to GM and $200 million to Our Next Energy, the jobs have yet to surface. Adding to the problem, some companies have backtracked on their commitments or laid off workers.
For instance, Our Next Energy has already conducted two rounds of layoffs, cutting dozens of Michigan jobs after receiving its $200 million payout. GM, after laying off thousands of employees in 2024, also delayed plans to expand its EV factory in Orion Township despite collecting SOAR funds. On top of that, it sold its ownership stake in Ultium Cells, passing job obligations to its South Korean partner, LG Energy Solution.
These failures have sparked criticism. James Hohman of the Mackinac Center for Public Policy called the program “poorly designed,” highlighting how companies can cash in on subsidies without creating jobs. He also pointed out how taxpayers must wait years to recover funds when deals fall through.
In response, Michigan Republicans introduced legislation to redirect much of the SOAR funds to road repairs. Their proposal, which diverts $550 million away from failed business incentives, aims to allocate $3.1 billion annually to fix state roads without raising taxes. The plan cleared the House with bipartisan support, though it faced opposition in the Democrat-controlled Senate. Senate Majority Leader Winnie Brinks dismissed the plan as a “nonstarter,” claiming it doesn’t align with Democratic priorities.
Governor Whitmer, meanwhile, continues pushing for increased taxes on businesses and wholesale marijuana to address Michigan’s $3.9 billion road funding gap. Critics, including House Speaker Matt Hall, argue this approach prioritizes big corporations over Michigan workers and taxpayers.
Whitmer has defended the SOAR program since its inception in 2022, describing it as essential for Michigan’s economic future. At the time, she promised it would create "tens of thousands of good-paying jobs" while attracting billions in investment. However, public trust has eroded as those promises remain unmet.
While Democrats have yet to propose an alternative road funding plan, Rep. Noah Arbit suggested they need to clarify their approach. He acknowledged the party has provided no meaningful steps forward, adding pressure to deliver results.
As failures pile up, Michigan taxpayers are left questioning the rationale behind giving massive subsidies to multibillion-dollar corporations with little accountability. Should lawmakers continue funding these programs, or would taxpayers be better served by reallocating funds elsewhere?
We want to hear from you. What’s your take on Michigan’s SOAR program? Should the state rethink its approach to economic development? Share your thoughts below.
