WASHINGTON, DC — Congressmen Bryan Steil (R-WI-01) and Tony Wied (R-WI-08) wrote to Secretary of the U.S. Department of Housing and Urban Development Scott Turner, calling for an investigation into the allegations of egregious mismanagement of taxpayer dollars by Newcap Inc. in Green Bay, WI.
“Wisconsin families deserve to know grants funded by their tax dollars are used responsibly and efficiently,” said Steil. “The allegations of excessive spending raise serious concerns about wasteful and abusive behavior with taxpayer funds. I urge HUD to investigate the allegations of misuse and restore good governance and responsible management of critical housing programs.”
“Northeast Wisconsin families work hard for their money, and it is our duty to ensure that every single one of their taxpayer dollars is used efficiently,” said Wied. “The allegations of misuse of funds at Newcap for the personal gain of executives and employees are unacceptable. I urge HUD to conduct a full investigation so taxpayers across Wisconsin’s 8th District can see how every penny was spent.”
Background:
Newcap is a non-profit organization whose mission is to “to move people from poverty to opportunities and economic security, while enhancing community development.” However, in both 2023 and 2024, Newcap reported a $2 million deficit, despite receiving nearly $11 million from the federal government and nearly $3 million from the state. This deficit appears to be driven by abnormally high salaries for executives (including nearly $240,000 in annual compensation for the Chief Executive Officer, more than double her salary in 2018) and the misuse of grant funds to purchase first-class plane tickets and “team building activities” that included high-end dinners and cooking classes, among other items.
Executive compensation at Newcap exceeded all 14 other peer agencies in the State. Further, Newcap’s executive compensation also included a $50,000 bonus for their CEO drawing off a Bezos Family Grant in a practice one charity watchdog criticized as “frowned upon in the nonprofit sector” for its potential to create “inappropriate incentives.”
According to Newcap’s most recently published audit, $3 million of Newcap’s annual receipts came from various HUD programs, including Permanent Supportive Housing, the Youth Homelessness Demonstration Grant, and the HOME Homebuyer and Homeowner Rehabilitation Program. Money that should have gone towards helping Wisconsinites find safe and stable housing may have instead padded executive salaries and funded staff outings. This presents a clear case of wasteful and abusive behavior with taxpayer funds.
CLICK HERE to read the letter.
