GOP leader seeks federal probe into Michigan grants, Dearborn nonprofits

By Elyse Apel
The Center Square

Michigan Senate Republican Leader Aric Nesbitt is calling on the U.S. Department of Justice to review grant oversight and administration involving several Michigan state agencies and Dearborn-based nonprofits.

In a letter sent Wednesday to U.S. Attorney General Pamela Bondi, Nesbitt asked the DOJ to examine grant processes at the Michigan Economic Development Corp., Michigan Department of Health and Human Services and Michigan Department of Labor and Economic Opportunity, as well as funding connected to ACCESS Michigan and the National Association of Yemeni Americans.

Nesbitt said he wants to ensure taxpayer-funded grants are administered with 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.”

Nesbitt’s letter was sparked in part by reports from an independent journalist who found “massive potential fraud” in disabled adult foster care homes in the Dearborn area. First released earlier this week, those initial reports quickly went viral on social media.

“Nigerian staffer inside Dearborn’s disabled adult foster care system tells me many centers are likely committing FRAUD,” the report said on X. “No staff on site during peak hours. No patients. We knocked on several doors…No answer.”

Reminiscent of reports of widespread fraud out of Minnesota which have garnered national attention and federal investigations, Nesbitt said the seriousness of those claims of systematic fraud in Michigan warrants federal review.

He also highlighted that state and federal funds may have been approved for certain organizations despite what he characterized as “inconsistencies” and “concerning patterns” in financial reporting. Some of Nesbitt’s concerns included:

• Gaps in federal tax filings

• Misuse of grant funding, including for illegal immigrants

• A lack of clarity regarding taxpayer-funded requests for the National Network for Arab American Communities

• Little-to-no transparency or oversight of grants from Michigan agencies, which Nesbitt labeled a “pay-and-pray” approach

Nesbitt said the state must remain committed to protecting taxpayer dollars and ensuring organizations receiving state funding meet accountability standards.

“We need a government that consistently puts Michigan families first,” he 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.”