States and cities are using federal economic stimulus funds to lure companies with economic development incentives, reports The Wall Street Journal

“States and local governments, including in Georgia, Michigan and West Virginia, agreed to give out at least $1 billion in subsidies eight times in 2022, according to an analysis from Good Jobs First, a nonprofit research group that is often critical of subsidies…Those are the most subsidies of that size ever in a single year. Just one deal of that size occurred from 2018 to 2021.

“One reason why big incentives are on the rise is that there are more projects under way. Manufacturers, scarred by shipping disruptions and geopolitical tensions, are looking to move factories to the U.S. Producers of electric vehicles, batteries, computer chips and solar panels are racing to find U.S. sites to meet booming demand and land generous federal subsidies. More companies are thinking about moving their headquarters from expensive cities to cheaper places. “

It isn’t just $1 billion-plus deals that are on the rise, according to the article:  state and local officials agreed to 23 subsidy deals valued at $50 million or more in 2022, according to Good Jobs First, the most such deals in seven years. Good Jobs First’s numbers include only state and local subsidies and don’t include federal tax breaks under the Chips and Science Act and the Inflation Reduction Act.