by: John Clore | 3/4/2025 at 2:57 PM

In response to the COVID-19 pandemic, Michigan received substantial federal relief funds aimed at mitigating the health and economic impacts on its residents. Despite these allocations, concerns have arisen regarding the distribution and utilization of these funds, with reports indicating that many small businesses, hospitals, and schools may not have fully benefited as intended.

Federal Relief Funds Allocated to Michigan

Michigan was allocated approximately $6 billion in federal aid through three waves of funding between March 2020 and March 2021. These funds were intended to support various sectors, including education, healthcare, and small businesses.mackinac.org

 

 

The Breakdown: Where Was the Money Supposed to Go?

Michigan received $6 billion in federal COVID-19 relief funds between March 2020 and March 2021. These funds were intended to support essential sectors:

  • Education Sector: While the state received significant funding for schools, reports indicate that only about $2.5 billion of the $6 billion had been spent by the end of the 2021-22 school year. This underutilization raises questions about the allocation process and the challenges schools faced in accessing these resources.mackinac.org $2.5 billion spent (out of $6 billion allocated)

  • Small Businesses: The Pure Michigan Small Business Relief Initiative awarded $10 million in grants to nearly 700 small businesses. However, considering the vast number of small businesses in Michigan, this support may have been insufficient to address the widespread economic challenges posed by the pandemic.michiganbusiness.org Only $10 million granted to 700 businesses statewide

  • Agricultural Sector: The Michigan Agricultural Safety Grant program allocated $15 million to support farms and food processors in implementing COVID-19 mitigation measures. While beneficial, the limited scope of this program may have left other sectors within agriculture without necessary support.michiganbusiness.org A mere $15 million allocated for food processing and farm safety.

That leaves $3.475 billion unspent, mismanaged, or missing—yet Michigan’s legislature has refused to investigate.

Instances of Mismanagement and Fraud

Concerns about mismanagement and fraudulent activities related to COVID-19 relief funds have emerged:

  • Rental Assistance Fraud: A Michigan individual admitted to providing false information to the Michigan State Housing Development Authority (MSHDA) on multiple program applications, fraudulently obtaining $8,850 from the COVID Emergency Rental Assistance (CERA) program.michigan.gov

  • Healthcare Fund Misappropriation: A Michigan woman pleaded guilty to stealing government funds designed to aid medical providers treating COVID-19 patients, using them for personal expenses instead.justice.gov

Misallocation and Fraudulent Activities

  • Michigan Education Association (MEA): The MEA and its health insurance affiliate, MESSA, improperly received $12.5 million in federal Paycheck Protection Program (PPP) loans, despite being ineligible. They were required to repay these funds along with additional penalties.mackinac.org

  • Individual Fraud Cases: A Michigan woman pleaded guilty to misappropriating approximately $37,657 intended for medical providers treating COVID-19 patients, using the funds for personal expenses instead.justice.gov

Unspent Funds

  • Education Sector: As of September 2024, Michigan schools had $343 million in unspent federal COVID-19 relief funds, with a looming deadline to utilize these resources.fox17online.com

  • Local Governments: Michigan’s local governments faced challenges in deploying the $4.4 billion allocated to them under the 2021 American Rescue Plan Act, leading to delays in community support initiatives.news.umich.edu

Billions of dollars in federal COVID-19 relief were sent to Michigan to aid small businesses, hospitals, and schools struggling through the pandemic. Yet, $3.5 billion remains unaccounted for, and Michigan’s legislators have done absolutely nothing to investigate where it went. Instead of demanding accountability, lawmakers have ignored the issue, leaving taxpayers in the dark.

Once Again, Michigan’s Legislators Are Doing NOTHING

Despite these glaring issues, not a single serious legislative inquiry has been launched to investigate where Michigan’s missing $3.5 billion has gone.

  • Governor Gretchen Whitmer has remained silent on the missing funds, despite overseeing the distribution.
  • The Michigan Legislature, controlled by both Republicans and Democrats at various times, has failed to hold hearings or demand audits.
  • Attorney General Dana Nessel has been more focused on political prosecutions rather than investigating massive financial mismanagement.

Why the Silence? Who’s Protecting the Fraud?

Michigan’s political establishment benefits from the lack of oversight. With no transparency laws requiring full disclosure on these funds, state bureaucrats and political insiders can hide the trail of missing money.

If legislators wanted to act, they could:

  • Demand a full audit of all COVID relief funds in Michigan
  • Hold hearings and subpoena officials responsible for distribution
  • Investigate fraudulent claims and prosecute those responsible

But they refuse—likely because they already know the money is gone and don’t want the public to find out who really benefited.

Time for Action: Where’s the Accountability?

Michigan residents deserve answers. While taxpayers struggled, politicians allowed billions to disappear without any attempt to recover or account for it.

It’s time to demand answers:

🔹 Where did the money go?
🔹 Who personally benefited from the missing $3.5 billion?
🔹 Why aren’t legislators launching full investigations into this massive scandal?

Michigan’s COVID relief scandal is a disgrace, and every lawmaker refusing to investigate is complicit in covering it up. 

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1 Comment

  1. Who do i need to contact to report this corruption? I’ll be there first if needed. I’m tired of being threatened and ripped off by Whitmer and her cronies!! This should go to the highest level for prosecution

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