(The Center Square) – Louisiana Economic Development has committed more than $375 million in taxpayer-funded cooperative endeavor agreements over the past two years, for everything from football bowl games and festivals to facilities supplying auto materials and microchips, according to The Center Square’s review of state records.
A $200 million pact with Hyundai to build a $5.8 billion steel mill in Donaldsonville tops the list. It’s followed by an $88 million agreement with Louisiana Tech University and Radiance Technologies for a microchip facility in Ruston that will support the federal military. Millions more have been allocated for marketing the Super Bowl, upgrading a New Orleans golf course for an upcoming tournament and helping local parishes attract new businesses.
The cooperative endeavor agreements have become a key part of LED’s playbook to attract big-ticket economic development projects. A total of 96 agreements have been signed since Gov. Jeff Landry took office in 2024, and 65 are currently active.
In practice, the agreement is a contract in which the state promises cash grants, tax breaks or infrastructure support, and the company or organization promises jobs, capital spending or specific services in return. Some of the biggest span a number of years: The Hyundai and microchip agreements don’t expire until 2057 and 2043, respectively.
Hyundai’s grant will be doled out over the next six years and will allow the company to be reimbursed for a variety of costs. The first $100 million will be used by the state to purchase land for the steel mill. Then the state will give Hyundai $20 million annually until 2031 to help cover construction costs. The state has also promised a long list of road upgrades and a “Workforce Training Center” to help supply Hyundai with skilled employees. Construction on the roads has begun. In order to secure some of the funds, Hyundai must hit certain investment targets.
LED has already paid out $4.25 million for the microchip facility. For the next four years LED will pay out $8 million, $3 million for 11 years after and $750,000 the final year. Louisiana Tech will operate a workforce training program for the facility.
On top of the subsidies, Hyundai and Bulldog Microchips are also expected to take advantage of the state’s Quality Jobs tax incentive program, which provides a cash rebate for companies that create higher-paying jobs.
Louisiana’s constitution generally bans the state from handing over public money or special benefits to private companies. But it allows the state and local governments to enter “cooperative endeavors” with public or private partners if there is a clear public benefit such as jobs, investment or infrastructure.
LED Secretary Susan Bourgeois said the agreements are needed to keep Louisiana competitive with other states. The agency told The Center Square many of the contracts are lengthy “and in no way are a reflection of a one year budget.”
Jennifer Schaye, an attorney for the state auditor, which monitors cooperative endeavors, said the law on them “follows the Cabela reasoning of the Louisiana Supreme Court,” meaning a public agency must “have a duty to do something,” can’t be acting “for one particular person, so it’s not a donation,” and must “have a reasonable hope of getting something back in return.”
Payments for the commitments have increased significantly in recent years. In 2023, the state paid out $25 million. In 2025, they paid down $95 million.
Many of the state’s smaller agreements are with regional economic development groups. Greater New Orleans Inc., Central Louisiana Economic Development Alliance, One Acadiana and South Louisiana Economic Council are being paid to serve as regional fiduciaries and “economic development organizations,” handling parishes’ efforts to recruit businesses.
LED has also leaned on the agreements to bankroll major events that drive tourist dollars. The agency signed over $18 million for the Super Bowl in New Orleans this year, $1.2 million for the Essence Festival in New Orleans, $100,000 for the 2025 State Fair in Shreveport, $500,000 for the Defenders of Liberty Air Show at Barksdale Air Force Base and $7.2 million for a Saudi-owned LIV Golf tournament, scheduled for next year in New Orleans.
Although Louisiana offers generous incentives for the entertainment industry, the state has also committed $2.5 million to cooperative endeavor agreements supporting film and media training programs, including $750,000 for Baton Rouge Community College, $187,839 for Louisiana State University, $700,000 to expand Tulane University’s Digital Media Practices program and $688,652 for Loyola University New Orleans.
