Michigan Lawmaker Proposes Ban on Non-Disclosure Agreements for Economic Development Deals

The Michigan Legislature convened on September 3, 2025, to discuss critical oversight issues surrounding corporate subsidies and state investments. The meeting highlighted significant concerns regarding transparency and accountability in economic development deals facilitated by state and local officials.

One of the primary topics addressed was the use of non-disclosure agreements (NDAs) by elected or appointed officials in economic development transactions. A legislator emphasized the detrimental impact of NDAs, citing examples from Mundy Township and Marshall, where such agreements have obscured public knowledge about community developments. The call for a ban on NDAs was strongly supported, with the argument that Michigan's Freedom of Information Act (FOIA) laws already limit public access to information.

The discussion then shifted to the composition of the Michigan Economic Development Corporation (MEDC) and the Michigan Strategic Fund (MSF) boards. Concerns were raised about the predominance of real estate developers and corporate interests on these boards, suggesting a need for at least one member who is skeptical and evidence-based. This change, proponents argued, could lead to more rigorous questioning and oversight of economic decisions.

Attorney General Dana Nessel's recent suggestion was also referenced, advocating for a halt to state funding for the MEDC until better oversight mechanisms are established. Legislators expressed that without transparency and accountability, it may be prudent to restrict access to taxpayer funds, questioning the potential consequences of such actions.

Further discussions pointed to the broader implications of corporate welfare and the need for a return to fundamental economic principles. Critics argued that current practices allow officials to evade difficult questions about essential issues like education and housing policy, which significantly influence business decisions.

Community frustrations were also voiced regarding the governance of local developments, particularly concerning the Maple Creek Preserve Homeowners Association, where a majority of board members were reported to be non-residents with ties to the mega site project. This raised concerns about cronyism and the effectiveness of existing oversight mechanisms.

The meeting concluded with a consensus on the urgent need for reform in how economic development is managed in Michigan, emphasizing that without significant changes, the state risks perpetuating its current economic challenges. The legislators expressed a commitment to pursuing these reforms in future sessions.