On June 11, the Michigan House Economic Development and Small Business Committee heard testimony on and passed HB 5768-5770, SB 559, and SB 562, which would collectively overhaul the state’s current Strategic Outreach and Attraction Reserve (SOAR) Fund.
The five-bill legislation package, which passed the Committee 8-3, is designed to transform Michigan’s economic development. It focuses on enhancing housing, transportation, and other forms of community development, not just creating incentives and tax breaks for businesses, to make Michigan more attractive for top talent within the workforce.
SOAR, created in late 2021 and would be renamed the Make It in Michigan Fund under this proposal, has no ongoing revenue source beyond the 2024-25 fiscal year. The legislation package would create a 10-year extension of $600 million annually to be distributed as follows:
- $250 million annually to the Make it in Michigan Fund – half of the current level – to give grants to companies for jobs and investments and to prepare sites for future development.
- $200 million annually to a newly created Michigan Mobility Trust Fund to be equitably distributed to regional transit authorities and public transportation providers by a new five-member state board.
- $100 million annually to the Housing and Community Development Fund, which the Michigan State Housing Development Authority oversees—doubling the existing allotment.
- $50 million per year to the Revitalization and Placemaking (RAP) Fund, which would be the same as what is allocated now. The Michigan Strategic Fund, a state economic development arm, issues RAP grants.