Newcap Grant Funds in Limbo as Households Face Homelessness

134 households await transfer of $2.1 million in grants after Newcap's abrupt closure

Apr. 1, 2026 at 10:48pm

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Following the sudden closure of the nonprofit Newcap, 134 households in Northeast Wisconsin are at risk of becoming homeless again as a $2.1 million federal grant that was being used to provide housing assistance has not been transferred to other local organizations. Lawmakers are calling for an investigation into Newcap's handling of taxpayer funds before the grants can be reallocated, leaving vulnerable residents in a state of uncertainty.

Why it matters

The situation highlights the delicate balance between ensuring proper oversight of government funds and the urgent need to maintain critical housing assistance for low-income and homeless individuals and families. A prolonged delay in transferring the grants could push dozens of chronically homeless, domestic violence survivors, and youth into homelessness again.

The details

Newcap, a nonprofit that provided housing and other social services, abruptly closed its doors on Tuesday. One of the four grants Newcap was using to assist 134 households expired the same day, leaving those residents unsure if their rent will be covered this month. The U.S. Department of Housing and Urban Development (HUD) has not yet approved the transfer of the $2.1 million in remaining grant funds to other local organizations that are prepared to continue the services.

  • Newcap closed its doors on Tuesday, April 1, 2026.
  • One of Newcap's four housing assistance grants expired on the same day the organization closed.

The players

Steven Solway

A Green Bay resident who has received housing assistance from Newcap for about 10 years and is now uncertain about his ability to pay rent.

Josh Benti

Project director for the Greater Green Bay Blueprint to End and Prevent Homelessness, who is urging lawmakers to pressure HUD to release the grant funds to local organizations.

Rep. Tony Wied

A Republican state representative from Wisconsin's 8th Congressional District, who is calling for an investigation into potential fraud at Newcap before the grant funds are transferred.

Cheryl Detrick

The now-former CEO of Newcap, who has denied claims of mishandling taxpayer money.

HUD

The U.S. Department of Housing and Urban Development, which oversees the federal grants that were being used by Newcap to provide housing assistance.

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What they’re saying

“I've tried calling the office and I just get an answering machine. So, I'm very concerned about that.”

— Steven Solway, Green Bay resident

“Our understanding is it's being held up by HUD, so if you call your representatives, call Senator Baldwin and Ron Johnson, ask them to have HUD release those funds to Brown County organizations that are willing and ready to do the work and put pressure on HUD to do that.”

— Josh Benti, Project director, Greater Green Bay Blueprint to End and Prevent Homelessness

“Newcap's misuse of taxpayer dollars has left Northeast Wisconsin residents who depend on their services in a terrible position. This is what happens when we allow unchecked fraud to take hold in government programs. Before any tax dollars can be transferred, we need to ensure there is no widespread fraud.”

— Rep. Tony Wied, Republican state representative, 8th Congressional District

What’s next

HUD is expected to conduct an investigation into Newcap's handling of federal funds before deciding whether to transfer the remaining $2.1 million in grants to other local organizations. Lawmakers have urged HUD to expedite this process to prevent further disruption to the 134 households that were receiving housing assistance through Newcap.

The takeaway

This situation underscores the delicate balance between ensuring proper oversight of government funds and the urgent need to maintain critical housing support for vulnerable populations. A prolonged delay in transferring the grants could have devastating consequences for dozens of individuals and families at risk of homelessness in Northeast Wisconsin.