Taxpayers Got Played Again

Burning hundred-dollar bill with visible flames.

Michigan poured billions into corporate subsidies and got a fraction of the promised jobs—leaving taxpayers holding the bag.

Story Highlights

State reports show 1,846 jobs against 14,559–19,599 promised, under 13% of the goal ^[2].
Estimated cost nears $795,000 per new job from active awards, far above norms ^[4].
Six of ten subsidized companies reported zero jobs so far, per analysis ^[5].
Most jobs are self-reported and not yet verified by the state as of late 2025 ^[6].

What The Numbers Say About SOAR’s Results

Michigan’s Strategic Outreach and Attraction Reserve program promised a jobs boom. Company reports filed with the Michigan Economic Development Corporation show only 1,846 jobs in 2025, against a target of 14,559 to 19,599. That is less than 13 percent of the goal. Supporters call this early progress. Critics ask why the bill is so large with so little to show. The state awarded about $1.86 billion and spent around $1 billion to date, according to tallies cited by news outlets ^[2]^[3]^[11].

Analysts placed the average cost near $795,000 per new job using active awards. That figure comes from the companies’ own reports and state documents. It is far higher than what many view as reasonable for job subsidies. Defenders argue the cost would fall to about $160,000 per job if all promised hires happen. That is a big “if,” and it depends on future milestones that have not been met yet ^[4]^[3].

Verification Gaps And Who Actually Hired

State verification lags far behind claims. As of October 2025, zero jobs were state-verified because no verification deadlines had arrived. Every job count came from company self-reports. That makes hard oversight vital. Without audits, taxpayers must trust corporate paperwork. PolitiFact flagged that “zero jobs” is not accurate once self-reports are counted, but it also noted the lack of verification at the time, which keeps doubts alive ^[6].

Performance is uneven across companies. A review found six of ten subsidy winners produced zero jobs so far, while four met part of their promises. One firm even exceeded its goal. Results like this suggest the program hits more misses than hits. They also show why blanket defense of the fund does not match facts on the ground. Lawmakers need company-level scorecards to decide what to keep or cut ^[5].

Retained Jobs, Big Promises, And The Political Spin

State officials and some media point to job retention as a win. Dow reportedly retained 5,028 jobs, bringing new and retained jobs to 6,874 in 2025. Retention matters to families and towns. But taxpayers were told these subsidies would create new jobs at scale. Voters can support retention while still asking if billion-dollar checks for a small share of promised new jobs is sound policy ^[4].

Backers say the program was built to stop auto jobs from fleeing to southern states. They argue that canceling incentives costs competitiveness. That view has some bipartisan voices. Yet long experience in Michigan shows only about one in eleven promised subsidy jobs ever appears. History says caution is wise. A state analysis also found $670 million spent in the first three years with zero jobs at that time, fueling public anger over corporate welfare ^[1]^[7].

Accountability Steps That Protect Taxpayers

Lawmakers should order a full third-party audit of the 1,846 self-reported jobs. Auditors must confirm hires, start dates, wages, and whether the jobs still exist. The Michigan Auditor General or a non-partisan research group can handle this. The state should also publish a project-by-project ledger: dollars promised and spent, hard milestones, verified jobs, and clawbacks triggered. Sunlight will reward honest firms and expose those that overpromise ^[2]^[6].

Future deals must include strict “pay for performance” rules, fast verification, and automatic clawbacks. Tie payments to verified hiring, not press releases. Cap cost per job and bar stacking of subsidies. Require public dashboards that update each quarter. Michigan families pay the bill every time government bets big and misses. Real reform can stop the cycle where promises soar and results crawl. The goal is simple: real jobs at fair cost, proven with facts, not spin ^[3]^[5].