Rep. Gann warns against corporate welfare on steroids following CANOO bankruptcy

Gann Warns Against Corporate Welfare on Steroids Following CANOO Bankruptcy

OKLAHOMA CITY (Jan. 21st) – Rep. Tom Gann, R-Inola,  an opponent of corporate welfare, today issued a stark warning regarding the ongoing misuse of public funds.

"Corporate welfare is when the government takes the public's money to manipulate the economy, choosing winners and losers in the free market," Gann said. "In recent years, this practice has intensified, creating an era of corporate welfare on steroids, as Oklahoma government has pushed massive green-energy giveaways that align more with a liberal agenda than Oklahoma's conservative values."

Gann pointed to last week's bankruptcy of the high-profile, green-energy, electric vehicle startup, CANOO, as a prime example of why government must stop interfering in the free market. Canoo's manufacturing plant in Pryor is in Gann's House district.

"The bankruptcy of CANOO is yet another indicator that government must stop trying to pick winners and losers—they are terrible at it," Gann said.

In March 2022, Gann authored an opinion article titled Is Oklahoma Being Sold Down the River for CANOO?, in which he raised concerns about the company's questionable financial statements and attempted to warn the public about the perils of government subsidies for privileged businesses such as CANOO.

"Despite my warnings, my advice was not heeded. Instead, numerous public benefits were lavished on CANOO. Now, three years later, CANOO has declared bankruptcy, once again proving the folly of these corporate giveaways," Gann stated.

According to Gann, the last few years have seen an unprecedented acceleration of corporate welfare, with Oklahoma's government pursuing one green-energy scheme after another in a reckless bid to hand out public funds.

"This era of corporate welfare has wasted millions of our resources and valuable time. It must end," Gann said.

Gann further criticized the methods by which these corporate welfare deals have been carried out, citing several alarming trends, including:

• The signing of Non-Disclosure Agreements (NDAs), effectively preventing public discussion on multimillion-dollar deals;
• Rushing multimillion-dollar corporate giveaways through the legislative process with minimal public transparency;
• Awarding public funds to multinational, Diversity Equity and Inclusion (DEI)-touting corporations that do not align with Oklahomans' values; and
• Once, even cutting off debate and denying Gann the opportunity to ask further questions about a specific multi-million dollar corporate handout.

"In the most recent iteration of this disturbing trend, a special super committee has been dedicated to considering future giveaways," Gann noted.

"This era of corporate welfare on steroids has led to abuses previously unimaginable," Gann said. "The CANOO bankruptcy is just the latest proof that these policies do not work. Instead of attempting to micromanage the economy, we need to step back and allow the free market to operate without government interference."

Gann concluded by calling for a reversal of course, prioritizing fiscal responsibility and respect for the free market.

"The government must stop wasting its time and the public's resources on these misguided efforts," he said.

Tom Gann serves District 8 in the Oklahoma House of Representatives. His district includes parts of Mayes, Rogers and Wagoner counties.