Newcap, which served low-income residents in 10 counties for more than 50 years, announced its closure on Tuesday.

The Green Bay-based nonprofit, funded primarily through state and federal grants, previously said it planned to close “sometime this year” but didn’t specify when.

The agency served more than 25,000 people in 2022, according to an annual report. Its programs ranged from employment and job training to educational support, financial coaching, health and food assistance, housing services, home repair and case management.

Its 10-county area includes Florence, Marinette and Forest.

Newcap had a deficit of more than $2 million in 2024, and a 2025 audit raised doubt about the organization’s ability to continue operating.

According to Newcap’s announcement, the nonprofit tried implementing cost-saving measures, staff reductions and alternative funding options but could not identify a sustainable path forward.

In a statement, Deb Barlament, interim executive director, called the closure “one of the most difficult moments in our organization’s history.”

“Our thoughts are with the individuals and families who depend on these services, as well as with the staff who have dedicated themselves to this mission,” she stated. “We pursued every realistic option available to prevent this outcome.”

Before the announcement, the state Department of Administration declined to renew Newcap’s weatherization assistance program contract for the upcoming program year, citing “the current financial situation at Newcap and outstanding funds the agency must repay.” That’s after the DOA began “enhanced financial monitoring” of the nonprofit.

The Wisconsin Balance of State Continuum of Care, a nonprofit that coordinates housing and supportive services for individuals and families experiencing homelessness across 69 of Wisconsin’s 72 counties, said last week Newcap administers four U.S. Department of Housing and Urban Development grants.

Those grants support 134 households across the 10-county region, including 84 in Brown County. While local service groups want to take over the funding, HUD officials have told the agency they are not processing grant transfers, according to the Balance of State Continuum of Care.

“These families, as of (March 31), are all at risk of going homeless because the people who would administer the funding for their rent or for their housing doesn’t exist at this moment,” said state Rep. Amaad Rivera-Wagner, D-Green Bay.

More than $2.7 million in federal funding — including more than $1.6 million to Brown County — could be permanently lost from the 10 counties Newcap served if the grants can’t be transferred, according to the Balance of State Continuum of Care.

U.S. Sen. Tammy Baldwin’s office has been in contact with the Trump administration and HUD to push for the grant transfers. In a statement, Baldwin said Wisconsinites using the HUD-funded housing programs shouldn’t “be left without a roof over their heads” because the administration “won’t complete some paperwork.”

“We have capable, qualified, and willing organizations that can help these Wisconsinites out, and Donald Trump’s administration needs to do its job and immediately transfer the funding so these families aren’t left behind,” she stated.

The closure comes as Democrats and Republicans have called for an investigation into Newcap’s use of taxpayer funds after WLUK-TV began airing stories in February alleging the organization may have misused government money.

On Tuesday, state Sen. Eric Wimberger, R-Gillett, and state Rep. Robert Wittke, R-Caledonia, sent a letter to the state Department of Administration asking for records and accountability measures related to Newcap’s funding and operations.

State Rep. David Steffen, R-Howard, also sent a letter Tuesday to the Wisconsin Department of Justice. He said he’s concerned about allegations of “waste, fraud and abuse” against Newcap.

“There’s a lot of questions there, more than enough to open up an investigation to see if there was any criminal wrongdoing associated with this organization,” he told WPR.

Steffen also said the individuals who rely on Newcap’s programs are essentially “victims of this situation” and he isn’t sure what the timeline would be to transfer funding from the nonprofit to other entities and whether it can be done “in a timely fashion.”

“I certainly hope that there’s an opportunity for that to be explored,” he said. “But I gotta tell you, both the federal government and the state government, certainly it would be reasonable to expect them to just put a pump on the brakes here — as it relates to some of this money flowing — until they understand exactly what happened here and make sure it’s not happening anywhere else.”

Rivera-Wagner said those responsible for Newcap’s financial mismanagement should be held accountable. But he said it’s wrong to punish those who rely on the nonprofit’s services by refusing to transfer federal housing grants.

“That feels like they’re trying to punish people who did nothing wrong to make a political point,” he told WPR. “The goal should be to punish the people who did something wrong and make sure the people who did everything right can get the help that they need and deserve.”