Michigan Republican governor hopefuls target MEDC, John James in first debate

Republicans who hope to be Michigan's next governor used the first debate of the 2026 campaign to endorse sweeping tax cuts, to uniformly call for doing away with the state's economic development agency and to slam U.S. Rep. John James, a fellow GOP contender who refused to attend the event.

James, a second-term member of the House, is viewed by some as the front-runner in the race for the Republican nomination to succeed Democratic Gov. Gretchen Whitmer. But in a potential gamble, James' campaign announced he wouldn't participate in a series of three debates, over the coming weeks, organized by the Michigan Republican Party.

In reaction, the gubernatorial campaign of Senate Minority Leader Aric Nesbitt of Porter Township posted a "missing" person sign, with James' picture on it, outside the Grand Rapids-area events center where the Wednesday debate took place. And in Republican former Attorney General Mike Cox's opening statement, he accused James of abandoning the people in the crowd and abandoning GOP President Donald Trump by deciding not to run for re-election to his House seat in suburban Detroit.

"We don’t grow Michigan by electing people who don’t show up to work," Cox of Livonia said.

Nine months before the August primary election, Wednesday's debate drew the initial battle lines of the Republican race. GOP leaders are hoping to win the governor's office back after Whitmer's eight years in power. Whitmer can't run again because of term limits.

James spokeswoman Hannah Osantowske issued a statement about four hours before doors to the Apple Valley Events venue for the debate were scheduled to open for the event, contending that polling and fundraising numbers indicated the congressman from Shelby Township, who previously ran statewide for the U.S. Senate twice, was "the favorite to become Michigan's next governor."

On Monday, James reported raising about $1.38 million from July 21 through Oct. 20, more than any other candidate for governor did from donors — not including personal loans — over that time period.

"John will consider a primary debate once the field is set and will be speaking directly to Michiganders in the meantime," Osantowske said.

But the field of GOP candidates likely won't be set until after the April 21 filing deadline. The Michigan Republican Party has two more gubernatorial debates scheduled in November, including Tuesday at Athena Banquet Center in Roseville.

About 160 people were in the crowd for Wednesday night's debate. Tickets to the event cost $50 each, with the money going to benefit the Michigan Republican Party. The party's chairman, Jim Runestad, said tickets were sold out. Asked about James' absence, Runestad said he's heard the congressman is a good debater.

"I think the debates are a good thing, and hopefully he'll want to participate at some point," Runestad said.

Backing tax cuts

Other than the criticisms targeted at James, the candidates were generally positive toward one another on Wednesday. On policy, they endorsed sweeping tax cuts but didn't explain — and weren't asked — how they would ensure government services would be provided without the revenue.

Three candidates, former U.S. House candidate Anthony Hudson of Grand Blanc Township, Pastor Ralph Rebandt and activist Karla Wagner of Kent County, said they supported doing away with property taxes.

Property tax revenue helps fund government operations and public safety, and Michigan taxpayers paid $17 billion in state and local property taxes in 2022 alone, according to the Michigan Department of Treasury. Wagner has been leading a ballot proposal campaign to abolish property taxes in Michigan.

“We are a bankrupt state," she said at one point. "We need to make it more affordable for people to live here and do business here.”

Wagner said, at another point, that she would like to see labor unions go away.

Former state House Speaker Tom Leonard of DeWitt and many of the other candidates specifically endorsed ending the state's 4.25% personal income tax.

"Six of the top 10 growth states in this country right now have no income tax at all," Leonard said.

The state's personal income tax generated about $13 billion in revenue last year, according to the nonpartisan House Fiscal Agency.

End the MEDC?

The Republican candidates also called for reinstating the state's right-to-work law, making union membership optional, and doing away with the Michigan Economic Development Corp., the agency that works to lure businesses to the state and helps hand out incentives for projects.

The Michigan Economic Development Corp., whose leader serves in the governor's cabinet, has faced a string of controversies in recent months over its handling and oversight of public dollars. Democratic Attorney General Dana Nessel's investigators raided the MEDC's Lansing offices in June as part of a probe into the oversight of a grant given to a nonprofit led by a supporter of Whitmer.

Nesbitt, a longtime figure in the state Legislature, labeled the MEDC a "corrupt organization" and said it's "done" if he's elected governor. Hudson, who has worked as a truck driver for 20 years, according to his campaign website, also blasted the MEDC and incentives divvied out to companies by politicians in Lansing.

Hudson emphasized his political newcomer status and, at one point, noted that no one had heard of him 10 months earlier.

"We have enough crooks in Lansing," Hudson said. "We don’t need another one. We need someone that’s going to work for you.”

Rebandt, who unsuccessfully sought the GOP nomination for governor in 2022, also endorsed abolishing the MEDC.

"We’re going to close it, 100%. It’s gone," Rebandt said.

Rebandt said he would install a smaller operation of about five people to respond to requests from businesses that want to come to Michigan. Cox said he would also get rid of the MEDC and preferred the idea of setting up conditions for businesses to succeed.

"Henry Ford identified himself. Elon Musk identified himself," Cox said of the idea of government picking winning businesses for incentives.

Leonard has previously said he would replace the MEDC with some type of customer service center that would be more favorable to "all businesses across the state" and "not be focused on handing out subsidies."

A new James ad

Leonard didn't criticize James on Wednesday. Afterward, he told reporters his campaign was focused on "solving problems."

"The problems that Michigan faces right now are bigger than any one person on either side of the aisle," Leonard said.

While James didn't participate in the debate on Wednesday, the James campaign released its first ad of the primary campaign for governor. The commercial was called "Lock."

“Why do we lock our doors at night? Because we hate the people on the outside? No. Because we love the people on the inside,” James says in the ad. “We also need to lock our borders to protect us from drugs and terrorists.”

The new ad will run online and in digital formats, Osantowske said.

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