The proposed bill aims to enter the state of Michigan into the Corporate Welfare Prohibition Compact, which seeks to eliminate the practice of providing subsidies to specific businesses or industries at the expense of others. The compact outlines that party states agree not to offer financial incentives to attract companies to relocate or establish operations within their borders, as such practices are deemed harmful to fair competition and the overall economy. The bill emphasizes that these subsidies lead to inefficient resource distribution and contribute to corruption, undermining public trust in governance.

Additionally, the compact stipulates that once a sufficient number of states join—enough to form a three-fifths majority in both Houses of Congress—party states will cease providing new subsidies, except to fulfill existing contractual obligations. The bill also establishes enforcement mechanisms, allowing taxpaying residents to compel state law enforcement to uphold the compact, and designates a compact administrator to manage inter-state communications and compliance. The compact will take effect once the necessary conditions are met, and it includes provisions for withdrawal by states under certain circumstances.