A $30 million taxpayer-funded grant to Starbucks prompted an investigation by The Center Square into Tennessee's record of subsidizing private companies and what happens when those investments fail to deliver on promised jobs. The investigation examined more than a decade of FastTrack grants, uncovering how often Tennessee has been forced to pursue "clawbacks" to recover taxpayer dollars after companies fell short of their commitments.

 

The investigation was republished 38 times across eight states, including 12 outlets in Tennessee, extending scrutiny of one of the state's largest recent corporate incentive packages and providing taxpayers with new reporting on how Tennessee tracks, recovers, and safeguards public dollars when subsidy agreements do not go as planned.

 

The Center Square’s reporting combined public records, state grant data, an exclusive video interview with Tennessee Department of Economic and Community Development Commissioner Stuart McWhorter, and interviews with lawmakers, policy advocates, and economic development experts. Through those interviews, The Center Square found that Tennessee has initiated approximately 70 clawback actions since the FastTrack program began, even as state officials defended the practice as relatively uncommon. The investigation also calculated that nearly $758 million in FastTrack grants awarded since 2018 amounts to roughly $100 for every Tennessee resident, helping readers better understand the scale of the state's subsidy program.

 

The article placed the Starbucks agreement within the broader history of Tennessee's economic development incentives. The Center Square examined findings from a 2024 state audit showing millions of taxpayer dollars were deemed uncollectible after companies declared bankruptcy or dissolved before repaying grant funds. The Center Square also reviewed the state's largest subsidy agreements, including grants to Ultium Cells and Oracle America, while explaining why those companies were not currently subject to clawback actions despite announcing significant layoffs.

 

To provide readers with a complete picture of the debate, The Center Square interviewed supporters and critics of government business subsidies. McWhorter defended the Starbucks agreement by pointing to projected job creation and the state's return-on-investment analysis, while representatives from the Beacon Center of Tennessee, Americans for Prosperity, Good Jobs First, and State Sen. Heidi Campbell questioned whether profitable corporations should receive taxpayer funding at all. Starbucks declined The Center Square's request for an interview.