Detroit City Wire

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 collectively aim to overhaul the state’s current Strategic Outreach and Attraction Reserve (SOAR) Fund.

The five-bill legislation package, which passed the Committee with an 8-3 vote, is designed to transform Michigan’s economic development. It focuses on enhancing housing, transportation, and other forms of community development rather than solely creating incentives and tax breaks for businesses. The goal is to make Michigan more attractive for top talent within the workforce.

SOAR, created in late 2021 and proposed to be renamed the Make It in Michigan Fund under this new legislation, currently has no ongoing revenue source beyond the 2024-25 fiscal year. The legislative package proposes 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 provide grants to companies for jobs and investments and 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, overseen by the Michigan State Housing Development Authority—doubling the existing allotment.

$50 million per year to the Revitalization and Placemaking (RAP) Fund, maintaining its current allocation. The Michigan Strategic Fund issues RAP grants as part of its economic development efforts.