Reason Magazine: State Governments Promised Private Companies More than $10 Billion in Subsidies Last Year
In 2023, 16 states approved “megadeals,” which means at least $50 million in public subsidies went toward privatized industries.
Leading the pack was Michigan, committing to just shy of $2.8 billion among three economic development deals this year. The state also got the record for the largest megadeal recipient for any project this year – Ford’s electric vehicle (EV) plant in Marshall.
“If there is an upside,” Reason wrote, “the report notes that 2023 actually saw fewer ‘megadeals’ than the year before. ‘Whereas we dubbed 2022 a ‘mega-year’ for megadeals,’ writes Good Jobs First research analyst Nya Anthony, ‘the decreasing costs and number of deals in 2023 suggest a cooling-off period for state and local subsidy decision-makers this year.’ Unfortunately, Anthony still foresees that the automotive and tech industries ‘will most likely be heavily subsidized next year.’ ”
Read the full story at Reason.
Read our blog on the topic here.