A produce cooler at Willy Street Co-op in Madison, Wisconsin. FoodShare funding from the federal government will stop Nov. 1 if the federal government shutdown continues. (Photo by Erik Gunn/Wisconsin Examiner)

Unless the shutdown ends by that date, Wisconsin’s FoodShare program, which serves more than 700,000 Wisconsin residents — about 12% of the state’s population — will run out of funds Nov. 1, Gov. Tony Evers said Tuesday. FoodShare is funded through the federal Supplemental Nutrition Assistance Program, or SNAP, previously known as Food Stamps.

Two Wisconsin Head Start early childhood education programs are at risk for not receiving their expected federal authorization that was to start Nov. 1, according to Jennie Mauer, executive director of the Wisconsin Head Start Association.

“Our social safety net is stretched,” Mauer said Tuesday. “This is just going to really short communities, and I think providers are bracing. We just don’t know the tidal wave that’s going to hit us, so everybody is really concerned.”

The U.S. Department of Agriculture notified states earlier this month that the SNAP program would not have enough funds to pay full benefits to the program’s 42 million participants nationwide.

The department directed states to hold off on the transactions that move SNAP funds onto the electronic benefit cards that FoodShare members use to buy groceries.

FoodShare “may not be available at all next month if the federal government shutdown continues, leaving nearly 700,000 Wisconsinites without access to basic food and groceries,” the governor’s office said in a statement Tuesday.

“President Trump and Republicans in Congress must work across the aisle and end this shutdown now so Wisconsinites and Americans across our country have access to basic necessities like food and groceries that they need to survive,” Evers said.

Both the FoodShare and Medicaid programs refer to their participants as members. “FoodShare benefits are 100 percent funded by the federal government and the shutdown will need to end before members can begin getting benefits again,” the state Department of Health Services announced in the FoodShare news page Tuesday.

If FoodShare benefits stop in November, they won’t be lost, but they will be delayed, said Matt King, CEO of the Hunger Task Force in Milwaukee. When the shutdown ends, benefits will become available again, including those not paid during the shutdown.

The Hunger Task Force supplies food pantries throughout the greater Milwaukee area. If benefits stop, food pantry operators and suppliers expect to see a sharp increase in the need for their services.

“FoodShare is the first and most critical line of defense against hunger,” King said Tuesday. “The food pantry network across Wisconsin acts as a safety net to help people in an emergency. It’s not set up to be a sustainable source of food to meet all of their grocery needs.”

While helping people get access to food in an emergency, the food pantry network also works to connect people with “more sustainable and ongoing resources like the FoodShare program,” he said.

The impending pause on FoodShare funds will compound a need that has already increased by 35% across the state in the past year, King said. “The longer the government shutdown goes on, the more strain it will put onto the emergency food system.”

Mauer of the Head Start association said two of the state’s 39 Head Start programs were to receive authorization for their next round of funding starting Nov. 1, and with them the ability to draw on their federal grants for the next several months.

So far, the authorization hasn’t been received, Mauer said. In addition, however, if the authorization is issued but the shutdown remains in effect, “there’s no money” until a budget is enacted, she added. “They need money in the coffers for [Head Start agencies] to draw down.”

The issue will repeat for programs that must reauthorize by Dec. 1 and Jan. 1 if the shutdown continues.

The remaining Head Start programs are not believed to be in peril, Mauer said, because their grants have already been funded by the previous fiscal year’s appropriations.   

The Head Start program operated by the Sheboygan Human Rights Association is one of the two awaiting its Nov. 1 reauthorization and the new round of funding that would ordinarily begin then.

“At this point, we are unsure how we will be affected,” said Theresa Christen-Liebig, the executive director of the nonprofit. The agency is using “some state funding resources to continue services until mid-November,” Christen-Liebig told the Wisconsin Examiner in an email. The agency’s board will meet next week to consider its steps for the rest of November and beyond, she said.

“The uncertainty makes the situation stressful and hard on our staff and families,” Christen-Liebig said. “We are keeping everyone updated as we try to work things out and decisions are made to continue to provide services.”

Electric power lines. Clean energy projects, including several that involve improving the efficiency of electric power grids, are at risk of losing federal funding that was promised during the Biden administration. (Photo by Scott Olson/Getty Images)

The projects are on a list that covers three groups of cuts proposed in May, on Oct. 2 and this past week. The online news outlet Semafor reported the third set of proposed cuts, which alone totals $12 billion, on Tuesday, Oct. 7, and published a link to a list that covers all three groups.

“However, it’s not clear whether, or when, the full list of cancellations will be enacted, or if President Donald Trump is instead looking to use them as leverage in negotiations over the [federal government] shutdown,” Semafor reported.

The Wisconsin grants on the list are a mix of projects that help boost energy efficiency, including supporting the expansion of energy storage battery systems. One potential casualty is more than $1 million to prepare young people to enter apprenticeships in the skilled trades.

Clean energy holds the promise of addressing air pollution and climate change as well as revitalizing the state’s industrial base, said John Imes, director of the Wisconsin Environmental Initiative (WEI), a nonprofit that advocates policies benefiting the environment and the economy.

“These are all win-win that all of us want regardless of our political affiliation,” Imes told the Wisconsin Examiner. “This is all bottom-line stuff.”

Rolling back projects that enhance cleaner and more efficient use of energy will likely increase the cost of energy, Imes said.

“It means higher electric bills, higher energy bills, fewer choices and lost jobs,” he said. “We’re going to lose momentum.”

Battery power and rural grid upgrade

The two largest Wisconsin projects on the Department of Energy list of targets involve one company, Alliant Energy. They account for more than half of the Wisconsin funds targeted for cancellation.

The projects are being undertaken by Alliant’s Wisconsin Power & Light unit. They include a $50 million grant for upgrading the rural electrical grid and $30 million for a power storage system using a technology based on carbon dioxide this is to be built near Portage, Wisconsin.

“We understand the Administration and Department of Energy (DOE) are working through their budgets and have notified some businesses of changes to grant announcements,” said Cindy Tomlinson, Alliant senior manager for communications, in an email message last week.

“At this time, we have not been made aware of any changes to the announced DOE grants for our Alliant Energy projects,” Tomlinson said. “We are optimistic the value and viability of these projects is clear and that they will remain fully funded. These projects deliver economic and customer benefits.”

The electrical grid upgrade project received a conditional commitment from the energy department in December, but a final award agreement hasn’t been executed, Tomlinson said, and no federal funds have been received or spent.

The federal grants accounted for about one-third of the total planned investment for each project. If the grid upgrade grant is canceled, the project is still expected to go forward, Tomlinson said, “however at a slower, more gradual pace than the fast, concentrated fashion outlined in our grant application.”

Other potentially affected grants include $28.7 million for Johnson Controls, based in the Milwaukee suburb of Glendale, to support the company in its expansion of heat pump manufacturing.

The grant’s total value was $33 million at the time it was awarded to the company. According to USAspending.gov, a federal site that tracks the status of federal outlays, the business has received $4.4 million of the total.

Johnson Controls announced the grant in November 2023, part of an investment to scale up heat pump manufacturing at plants in Texas, Kansas and Pennsylvania and increase production by 200%, the company said at the time.

The company did not respond to inquiries Thursday and Friday by email and by telephone about the status of the grant or its planned heat pump manufacturing expansion.

Energy efficiency and innovation

Another Wisconsin recipient with grants on the list that are slated for elimination is Slipstream, a Madison-based nonprofit that provides consulting services on energy efficiency and innovation.

“We’re trying to make our energy systems more efficient and better so everybody’s paying less for energy,” said Scott Hackel, Slipstream’s vice president for research.

Hackel said Slipstream is working with other organizations on the list of targeted projects, and some of those organizations have been notified of grant terminations.

Slipstream also has two direct grants on the list, but has not received any notification that those grants are being terminated, Hackel said.

Slipstream had been awarded $5.2 million for work on equipping buildings with technology that enables them to automatically manage their power demand — reducing the building’s electrical load when demand on the grid is high and amping up the load when broader demand eases.

The organization is in the middle of a project implementing demand management technology in a group of buildings. The information gained from that test could be used to develop incentive programs for building owners to adopt that kind of technology, Hackel said.

If that gets cut off before it’s finished, other buildings in Wisconsin “would not have this example to look to,” he said.

A second grant awarded to the organization, $4 million, is to be used to train inspectors, building designers and others in how to effectively comply with and make the best use of building codes, particularly energy codes.

“Everything we’re doing is trying to make buildings and homes more affordable to live in with lower utility bills,” Hackel said. “If we’re not able to do that, that’s also a cost to people in Wisconsin.”

Two Universities of Wisconsin grants, one for $10 million and the other for $2.9 million, are on the list. Both involve projects to test technology innovations, according to the federal grant information documents.  

‘Electric city’ upgrades and a job-training program

A grant for the city of Kaukauna, Wisconsin, to install battery storage and make related electrical grid upgrades is also on the list. The original grant totaled $3 million, and so far $59,362 has been paid out, according to USAspending.gov, leaving $2.95 million that could be canceled.

The storage system is to bolster Kaukauna’s hydroelectric power generation operation, which dates to 1913 and led to the community’s adoption of “Electric City” as its nickname.

“Collateral damage from the Trump administration’s remarkably poor governance record continues to collect, this time in Kaukauna,” said Outagamie County Executive Tom Nelson. “I can’t think of something more insulting than making the electric grid of a place known as ‘Electric City’ less safe or efficient.”

Also on the list is the Wisconsin Regional Training Partnership, a Milwaukee nonprofit that provides training and certification to prepare people to enter apprenticeships in the skilled trades. WRTP was awarded a $1.5 million grant for training in skills related to transportation electrification. So far $112,470 has been paid out. 

Dan Bukiewicz, head of the Milwaukee Building Trades Council and co-chair of the WRTP board of directors, said that the board hasn’t been notified that its grant might be at risk of being taken away by the Trump administration.

“I won’t say we’re surprised,” however, Bukiewicz said. “They’re just trying to roll back a lot of the green energy and infrastructure [investments]. … It’s trying to make time stand still, and it just won’t if the United States is going to compete globally.”

WRTP students typically come from underserved communities and are the most in need, Bukiewicz said. The program’s training emphasizes job safety, introduces students to the construction industry, equips them with basic skills that an apprenticeship will build on, and acquaints them with how the industry and the technology are changing and where they might find a place that suits them.

If the federal grant is pulled, “these dollars are irreplaceable,” Bukiewicz said. “It’s not just taking money away and eliminating classes. It’s eliminating opportunities and a chance for generational change for people who really need it.”

Rachel LaCasse-Ford, right talks to Sen. Tammy Baldwin about her use of the Affordable Care Act marketplace to buy insurance during a meeting Baldwin held with small business owners and others in Mount Horeb, Wisconsin, on Sept. 25. (Photo by Erik Gunn/Wisconsin Examiner)

Matt Raboin owns Brix Cider, a farm-to-table restaurant, and brews apple cider in the Dane County village of Mount Horeb.

His wife’s full-time job with benefits provides the family with health insurance, but for Raboin, the Affordable Care Act (ACA) has made an important difference for some of his employees.

“We don’t offer insurance ourselves,” Raboin said during a recent round table discussion set up by Sen. Tammy Baldwin (D-Wisconsin). “A lot of small businesses in small towns aren’t in a financial place to do that.”

Like Raboin, some of his employees get their coverage through a spouse or because they also work another full-time job that provides benefits. But over the years, the ACA and the HealthCare.gov marketplace created under the law have been a critical source of health coverage for many of his employees, Raboin said.

Recently he polled a number of them. One memorable response came from a part-time employee who also has a part-time job with a local church. She buys her health insurance on HealthCare.gov. Thanks to an increase enacted in 2021 in tax credit subsidies, she’s been able to afford the premiums, Raboin said she told him.

“So without it, she’s like, ‘I can’t keep working for you. And I don’t think I keep working for my church. I think I have to find a different job,’” Raboin recalled.

The ACA and HealthCare.gov have made it possible for millions more Americans and thousands more Wisconsin residents to obtain health insurance.

But less visibly, the health care marketplace that the ACA created has also helped support many small businesses. If the enhanced tax credit subsidies that lowered the cost of health insurance for millions over the last three years aren’t renewed, small business owners and employees say they could be especially hard hit.

Nearly half of people who get their health insurance through the HealthCare.gov marketplace are self-employed or small business owners, or else work for small businesses, according to KFF, an independent nonprofit that researches and reports on health policy.

To expand access to health care, the ACA created the HealthCare.gov marketplace to make buying health insurance easier for people whose jobs don’t provide coverage and who don’t qualify for government programs such as Medicaid.

To make coverage more affordable, the law provides tax credit subsidies for people with incomes up to 400% of the federal poverty guideline. Those subsidies were increased in 2021 and expanded to people with higher incomes.

The enhanced subsidies will expire at the end of 2025 unless Congress extends them — driving up the cost of health insurance for millions.

The enhanced subsidy “saves more than 230,000 Wisconsinites an average of $500 every single month,” Baldwin said during a Zoom press conference Tuesday.

For Chrysa Ostenso and her late husband, the enhanced subsidies lowered their premiums from nearly $2,000 a month to about $300 a month, Ostenso said.

Ostenso lives in Ladysmith, Wisconsin, where she and her husband operated an optometry clinic for more than three decades, raising four children along the way.

“We always struggled to afford health insurance but of course we had to buy it,” Ostenso said in an interview. “As a family of four kids with a small business, you can’t go without health insurance.”

The family’s high deductible plans required them to pay $6,000 a year out of pocket before insurance would cover their health care. By 2020, when the children were grown and the health plan just covered Ostenso and her husband, they were paying $1,979 a month, she said.

They hadn’t qualified for the original ACA subsidies. When the enhanced subsidies were enacted in 2021, however, Ostenso said their premiums went down to $300 a month, increasing to $500 a month in subsequent years.

“It actually meant freedom to go to the doctor, because we were spending so much money on our premiums [previously] that we actually couldn’t afford to go to the doctor,” she said.

Standoff over extending subsidies

In the weeks leading up to Tuesday night’s federal shutdown, Democrats in Congress demanded that Republicans rescind sweeping changes to Medicaid that were part of the major tax- and spending-cuts megabill that President Donald Trump signed July 4.

They also demanded an extension of the enhanced ACA subsidies.

Baldwin has coauthored legislation that would make the enhanced subsidies permanent. She spent part of the just-concluded congressional recess traveling Wisconsin and meeting with people who expect to see their health costs go up sharply if the increased subsidies end.

During Tuesday’s press conference, Baldwin related a conversation with a  bakery owner who worried about how she and her family will afford health insurance, “but also that increased costs on the [HealthCare.gov] exchange will mean that her employees at her bakery may have to quit to work for big companies that offer insurance.”

During Baldwin’s press conference, Gigi Gastevich, an artist who owns a retail space in Stoughton, said the ACA and the enhanced subsidies had made it possible for her to launch and grow her business.

Gastevich is a 15-year cancer survivor. When starting her business, she qualified for BadgerCare — Wisconsin’s main Medicaid program — which covered the ongoing medical monitoring she requires as a cancer survivor.

In 2025, with her income above the limit for BadgerCare, she found an insurance plan on HealthCare.gov that included her existing health care professionals in its network and had an affordable deductible.

The plan’s premium was $481 a month, Gastevich said, but the enhanced subsidy  brought it down to about $100 a month.

Without the subsidy, she said, she will have to switch plans — possibly losing her long-standing group of providers if they aren’t in the network. She said her choices include taking a high-deductible plan that would put some of the regular care she’s been recommended as a cancer survivor out of reach financially; or closing down her business. 

“[That] would mean not only abandoning my dream of entrepreneurship and being a self-employed artist, but taking away an income source for the dozens of artists and artisans whose American-made work I sell here,” Gastevich said.

It would also forestall her plans to scale up her business to sell her own line of textiles and employ others. “I won’t be able to do that if my health and well-being is tied to being on an employer-based health care plan,” she added.

Uncertain future

During her tour of the state, Baldwin stopped in Mount Horeb on Thursday, Sept. 25, where she spoke with Brix owner Matt Raboin and four other business owners as well as local health care providers.

The round table took place at the Upland Hills Health Mount Horeb clinic. The urgent care clinic is part of a broader system that includes a hospital in Dodgeville and clinics in surrounding communities.

Dr. Mark Thompson, Upland Hills CEO, said system executives expect to see about $400,000 a year in additional uncompensated care based on projections of people leaving the insurance rolls because they don’t think they can afford the new ACA premiums.

Jay Goninen sat in as a board member of the Upland Hills system, but he’s also an employer for whom the ACA has made it possible to provide health benefits.

Goninen owns a business that helps connect the auto repair industry with high schools and technical schools. For the last few years, he’s opted to have employees of the firm purchase health insurance on the ACA.

The company pays a portion of the cost. Goninen likens the arrangement to a common practice of employers who offer a group health plan and split the cost with their employees.

“I do really worry about just the individual person and their ability to afford to live right now, in general,” he told Baldwin. “It is tough.”

In addition to worrying about what will happen to employees who bought coverage at HealthCare.gov if they lose their subsidies, Raboin said he’s also concerned about the broader ripple effect in the community.

“Our clients aren’t rich,” Raboin said. “Not everybody can go out to eat all the time, and if you start taking away that expendable income, that’s less people coming out to eat. So I think it would depress the whole economy.”

Rachel LaCasse-Ford owns a campground with her husband and also heads the Mount Horeb Chamber of Commerce.

“I’ve never really had a job that offers health care,” LaCasse-Ford told Baldwin. “I’ve always worked in small business, so we have always used health care from the ACA.”

The enhanced tax credits “definitely benefited” the couple, she said. “And if those go away, that will make our budgets tighter, and it will make things more challenging for us.”

With every new job, LaCasse-Ford said, she considers its impact on their health coverage and whether she can stay with a nonprofit employer such as the chamber, work for a small business, “or if I need to look for a larger employer that offers benefits.”