State Lawmakers Call for Review of Newcap Over Alleged Misuse of Tax Dollars

Allegations of high executive salaries and improper use of funds intended to help low-income residents

Published on Feb. 13, 2026

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State lawmakers in Wisconsin are calling for an independent review of the nonprofit organization Newcap after allegations surfaced that the group has been misusing tax dollars meant to assist low-income residents. Former Newcap employees and board members claim the organization is struggling financially due to factors like high executive salaries and not using taxpayer money as intended.

Why it matters

The allegations against Newcap, a major provider of social services in the region, raise concerns about the proper use of public funds and the accountability of nonprofit organizations entrusted with government money to serve vulnerable populations.

The details

State Sen. Jamie Wall and State Rep. Ryan Spaude, both Democrats from Green Bay, have issued statements calling for a thorough investigation into Newcap's finances. State Rep. David Steffen, a Republican, also sent a letter to the Wisconsin Department of Administration requesting a review of Newcap's handling of state funding. The Department of Administration has already placed Newcap under 'enhanced financial monitoring' due to financial concerns. Tax documents show Newcap operating at a $2 million deficit, and an independent audit questioned the nonprofit's ability to continue operating.

  • On December 17th, 2025, State Rep. David Steffen sent a letter to the Wisconsin Department of Administration requesting a review of Newcap's handling of state funding.
  • In late 2025, the Wisconsin Department of Administration placed Newcap under 'enhanced financial monitoring' due to financial concerns.

The players

Newcap

A nonprofit organization that provides social services to low-income residents in Wisconsin. It is currently facing allegations of misusing tax dollars meant to assist those it serves.

Jamie Wall

A Democratic state senator from Green Bay, Wisconsin, who has called for an immediate, independent review of Newcap to ensure taxpayer money is being properly accounted for.

Ryan Spaude

A Democratic state representative from Green Bay, Wisconsin, who has also called for a thorough investigation into Newcap's finances to ensure taxpayer money is being managed responsibly.

David Steffen

A Republican state representative from Howard, Wisconsin, who sent a letter to the Wisconsin Department of Administration requesting a review of Newcap's handling of state funding.

Kathy Blumenfeld

The Secretary of the Wisconsin Department of Administration, which has placed Newcap under 'enhanced financial monitoring' due to financial concerns.

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What they’re saying

“We need an immediate, independent review to ensure every dollar intended to serve families in need is properly accounted for. I call for a thorough investigation so taxpayers and the community can have confidence that their money is being managed responsibly.”

— Ryan Spaude, State Representative (fox11online.com)

“It is critical to ensure that taxpayer dollars are being appropriately utilized as intended and responsibly managed.”

— David Steffen, State Representative (fox11online.com)

“I was deeply concerned to learn of the serious and credible allegations of the misuse of funds at Newcap. The thousands of people who rely on their services deserve better, and we all expect integrity and transparency from organizations entrusted with public and charitable dollars.”

— Jamie Wall, State Senator (fox11online.com)

What’s next

The Wisconsin Department of Administration has indicated it will conduct a thorough review of Newcap's finances and use of state funding. The results of this investigation are expected to be made public in the coming months.

The takeaway

The allegations against Newcap highlight the importance of ensuring nonprofit organizations entrusted with taxpayer dollars are held accountable and transparent in their use of public funds. This case underscores the need for robust oversight and financial monitoring of social service providers to protect vulnerable populations and maintain public trust.