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The Michigan House Oversight Committee, dominated by the GOP, has been intensely scrutinizing the executive branch with a series of hearings and subpoenas. These probes cover election management, the Michigan Unemployment Agency, Michigan State Police, the Department of Natural Resources, and the state’s liquor-tracking system. However, the committee has taken a cautious approach regarding an emerging scandal at the Michigan Economic Development Corporation (MEDC).
Republicans have not shied away from criticizing the MEDC, which is responsible for distributing business incentives, and they have expressed intentions to overhaul the agency. Over the past year, The Detroit News journalists Beth LeBlanc and Craig Mauger have uncovered a series of investigative reports detailing how a nonprofit business accelerator, spearheaded by Fay Bedoun—a former Michigan Democratic Party Vice-Chair and ex-MEDC board member—secured a $20 million state grant.
As The Detroit News initially reported, Bedoun received a $550,000 salary from the grant. The grant funds were used for questionable expenses, including a $4,500 coffeemaker and an $11,000 first-class ticket to a conference in Budapest.
Currently, the MEDC is seeking a significant reimbursement of these funds, although Bedoun has yet to return the money, despite her stated intention to do so. Meanwhile, the Whitmer administration is working to distance itself from the scandal while attempting to protect its business incentives program.
Despite these developments, the House Oversight Committee remains on the sidelines for now. Oversight Chair Jay DeBoyer (R-Clay Township) explained, “The problem is there is a current, active criminal investigation going on, and we don’t want to do anything to screw that up. We don’t want to do something that could compromise [it].”
The criminal investigation, led by Michigan Attorney General Dana Nessel, is at odds with the MEDC over a search warrant executed to seize records from its Lansing headquarters. The MEDC is requesting the return of these records, while the Attorney General’s office is seeking court approval to use a “taint team” to determine which documents will remain with law enforcement and which will be returned.
This ongoing situation is undoubtedly causing discomfort for many, including the Whitmer administration, as communications suggest the governor’s office was well aware of the grant awarded to Bedoun.
DeBoyer indicated that there might still be oversight hearings on how the state administers MEDC grants, emphasizing the importance of developing better policies. “It’s not about crime. It’s about making better policy for Michigan, and if we can look at how they’ve managed this grant and where the deficiencies are at, and how it was, perhaps, done inappropriately, moving forward we can establish better policy for the distribution of grants,” he stated.
DeBoyer expressed a desire to call in Bedoun and an MEDC representative for hearings, although he admitted, “But, to be honest, I don’t think I’m going to hear from either of those people.”
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Have questions about Michigan politics? Or want to share your thoughts on the newsletter? We welcome your feedback! Contact us at politics@michiganpublic.org.
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Discussion Points
First act: Detroit Mayor and independent gubernatorial candidate Mike Duggan is capitalizing on the ongoing budget standoff in Lansing. The state Legislature has missed the July 1 budget deadline, affecting schools and local governments. Duggan proposes a law suspending paychecks for state officials if the budget isn’t enacted by July 1, a move that could pressure Senate Minority Leader Aric Nesbitt, a gubernatorial candidate, to act.
Voting measure: A proposed ballot measure to ensure only American citizens vote in Michigan elections is advancing toward signature collection. “Michigan law already bans non-citizens from voting. And cases of that happening have been extremely rare,” notes Michigan Public Radio Network’s Colin Jackson reports. The measure would require proof of citizenship, with signature gathering potentially starting soon.
Rescission: Following the signing of Trump’s “One Big Beautiful Bill,” the U.S. Senate is preparing to address the President’s $9.4 billion rescission package. This includes over $1 billion cuts to the Corporation of Public Broadcasting, which funds NPR and PBS. The House passed the legislation, and the Senate vote is imminent. President Trump has warned GOP members against supporting continued public broadcasting.
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Yours in political nerdiness,
Rick Pluta & Zoe Clark
Co-hosts, It’s Just Politics
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IJP ON THE ROAD
Zoe appeared on NPR’s Friday News Roundup discussing Texas flooding, Trump’s tariffs, and a Supreme Court ruling. Listen here.
Rick participated in WKAR’s Off the Record, covering road funding and political topics, including Mike Duggan’s accountability proposal. More details here.
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