LANSING, Mich. — Senate Republican Leader Aric Nesbitt on Wednesday requested that the U.S. Department of Justice review grant oversight and administration involving the Michigan Economic Development Corporation, Michigan Department of Health and Human Services, and Michigan Department of Labor and Economic Opportunity, along with Dearborn-based nonprofits ACCESS Michigan and the National Association of Yemeni Americans.

In a letter sent Wednesday morning to Attorney General Pamela Bondi, Nesbitt outlined what appear to be concerning patterns regarding the oversight and potential use of taxpayer funds. The request seeks federal assistance to ensure Michigan resources are being managed with the highest levels of transparency and accountability.

“My mission has always been to ensure that every family, every student and every job creator has the opportunity to make it in Michigan,” said Nesbitt, R-Porter Township. “That opportunity is undermined when there are questions about how tax dollars are handled. I hope the DOJ will look into these red flags to help uphold the public’s trust.”

The formal request highlights what Nesbitt described as significant gaps in oversight by the MEDC, MDHHS and LEO. The letter details concerns that state and federal funds might have been approved for organizations despite what could be interpreted as inconsistencies in financial reporting.

Areas of concern identified in Nesbitt’s referral include:

• Reported filing inconsistencies: The referral notes reports suggesting the National Association of Yemeni Americans may have experienced gaps in federal tax filings, with questions remaining regarding revenue disclosures relative to grant awards.
• Potential misallocation questions: The letter raises questions about whether certain “community health” funding might be utilized for purposes outside the primary scope of the grants, such as legal and other services being provided to people residing in the United States illegally.
• Review of requests: Nesbitt noted the need for clarity regarding taxpayer-funded requests for the National Network for Arab American Communities to ensure such funds are not utilized for partisan activities.
• State oversight processes: The referral points to what Nesbitt described as an apparent pattern of “pay-and-pray” grant administration within state agencies, specifically the MEDC, suggesting that “enhancement grants” lack the traditional oversight necessary to prevent mismanagement.
• Reports of fraud in adult care: Nesbitt also cited recent reports published by investigative journalists alleging fraudulent behavior by multiple taxpayer-funded adult care homes in the Dearborn area. Given the gravity of these allegations, a federal review is essential to ensure taxpayer dollars are being used for their intended purpose.

“We need a government that consistently puts Michigan families first,” Nesbitt said. “To truly make it in Michigan, we must ensure any potential for waste or mismanagement is addressed. With the support of our federal partners, we can seek the necessary answers to protect the integrity of our state’s financial systems.”

Nesbitt said he remains committed to ensuring taxpayer dollars are protected and that all organizations receiving state support are held to the same rigorous standards of accountability.