Reading Time: 4 minutes

The Social Development Commission, or SDC, is asking the federal government to reverse a decision made by the state that could alter the anti-poverty agency’s funding options. 

Here’s what we know.

The community action decision 

The Wisconsin Department of Children and Families decided in May to remove the SDC’s community action agency status, effective July 3.

Although the department believes SDC has not been operating anti-poverty services since it shut down in April 2024, despite reopening in December, SDC’s leaders have said the state did not follow the proper process to make this decision.

Without this designation, SDC will not be eligible for a Community Services Block Grant, which is a small portion of its budget but significant to its efforts to pay back employees and rebuild its service programs.

How does a federal review work? 

When a state decides to rescind community action status or the related block grant funding from a local agency, the agency can request a review from the U.S. Department of Health and Human Services within 30 days. 

SDC submitted a request for a review of the state’s community action decision to the department on June 9, citing concerns about due process. 

The Department of Health and Human Services, or HHS, will evaluate if the state’s determination process followed the guidance on the termination or reduction of funding for entities eligible for the Community Services Block Grant, according to a spokesperson from the department. 

The Division of Community Assistance, which is part of the Office of Community Services within the federal department, oversees block grant funding for community action agencies. 

“I think that HHS is concerned about the process that was used to de-designate SDC, and so my expectation is that they will be talking to the state about the process,” said William Sulton, SDC’s attorney.

The Department of Children and Families received notification on June 11 from the Office of Community Services that SDC requested a review, but did not receive the request itself, according to Gina Paige, communications director for the department.

The review will be completed within 90 days of receiving all required documentation from the state, according to federal law. If not completed in the 90-day time frame, the state’s decision will be upheld. 

As part of the request, SDC is asking the Department of Health and Human Services for direct financial assistance. 

According to the CSBG Act, if a state violates the de-designation process –  by terminating or reducing funding of an eligible entity before the state hearing and the secretary’s review – the Health and Human Services secretary is authorized to provide financial assistance to the entity affected until the violation is corrected.

SDC’s concerns 

SDC raised two main concerns with the state’s determination process in the request, based on state and federal laws.  

The first concern is that the public hearing on SDC’s community action status, held by the Department of Children and Families on April 4, did not meet the legal requirements of a “hearing on the record.”

“You’re supposed to be permitted to call witnesses and present evidence,” Sulton said. “… We were given seven minutes to make a speech, and that was it.” 

SDC also says that both the Department of Children and Families’ secretary and the legislative bodies of the city of Milwaukee and Milwaukee County would have to sign off on the decision, based on a state statute that requires the legislative body that initially granted the agency community action status to approve rescinding it. 

“They didn’t go out and get position statements from the city and the county’s legislative bodies,” Sulton said. 

The department did not comment on these claims. (Paige previously said it has worked closely with the Office of Community Services and Milwaukee County to determine the process needed to move forward with de-designating SDC.)

Although Milwaukee County’s Office of Corporation Counsel submitted a letter to say it found no records of the Board of Supervisors taking action on SDC’s status as a community action agency, Sulton said that doesn’t mean there are no records. 

He argues that this provision of the law, added in 1983, was put in place to protect SDC from arbitrary state action.

Funding deadline

In May, three state lawmakers asked SDC to consider voluntarily de-designating, which would allow the state and Milwaukee County to more quickly find an interim service provider to use SDC’s allocated funds in Milwaukee County. 

The $1.18 million in 2024 block grant funding could be recouped by the federal government if not spent by Sept. 30, 2025, according to the Department of Children and Families. 

However, Sulton said when he reached out to the Department of Health and Human Services before filing the review, an employee told him the 2024 funds had to be obligated by 2026.

“To the extent that anybody has the impression that this money has to be obligated by September or it’ll be lost, HHS says it’s not the case,” he said. 

States and subrecipients usually have two years to distribute funds, but it depends on state-specific policies, according to HHS.

The state’s Sept. 30 deadline marks two years after the beginning of the 2024 fiscal year in October 2023, according to Paige. 

Though Paige said that SDC’s request for review is perpetuating the lack of services in Milwaukee County, she added that the department plans to seek a six-month liquidation extension from the federal government.

“It’s quite possible that we’re gonna be on a really tight timeline to get that money out the door, so that’s why we’re hoping that we can work with the federal government and see if they can allow us an extension to expend it a little bit longer,” Paige said. 

Board member changes

The SDC board added two commissioners in May – Milwaukee Public Schools appointed Michael Harris, and the Interfaith Conference of Greater Milwaukee appointed Peter Fetzer, an attorney at Foley & Lardner LLP. 

In the last seven months, the SDC board has expanded from three to 10 commissioners, thanks to several appointments to vacant seats. The board is designed to have 18 members at full capacity. 

Commissioner Lucero Ayala’s term has ended, according to Sulton. Ayala was nominated and selected last year to fill the remainder of Serina Chavez’s term as an elected commissioner.

Milwaukee Social Development Commission wants feds to reverse state funding decision   is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Reading Time: 3 minutes

The state of Wisconsin is rescinding the Social Development Commission’s status as Milwaukee County’s community action agency, a move that puts the SDC’s ability to offer critical services to the community in jeopardy.

The anti-poverty agency has held that designation for over 60 years. Without the status, SDC is not eligible for key federal block grant funding for its services.

In a letter sent Friday to the SDC board, Wisconsin Department of Children and Families Secretary Jeff Pertl wrote that as of July 3, SDC’s status as Milwaukee County’s community action agency will end and that the agency will no longer be eligible for federal Community Services Block Grant funding.

“SDC has been a beloved institution in Milwaukee, positively impacting community members through a long history of programs and services,” Pertl said in a statement. “As such, the decision to de-designate them as a community action agency was not taken lightly, but it is clear that we must turn the page to resume these vital services.”

The decision comes after representatives of Milwaukee County said earlier this month that they planned to move from SDC as its community action agency.

However, SDC board members had seen maintaining the community action status as a vital part of keeping the agency open and resuming social services.

“The most important thing is to make sure that Milwaukee County residents are served, and this missive from DCF ensures that they will not be served,” said William Sulton, SDC’s attorney.

Now, the SDC board can request a review with the federal government within 30 days or choose to voluntarily de-designate.

The decision

The department decided to terminate SDC’s designation because it believes SDC has not been operating anti-poverty services since it abruptly shut down in April 2024, despite reopening in December.

According to the letter, SDC has not completed its federally required audit, verified sustainable funding sources, addressed outstanding financial obligations or corrected other deficiencies the department identified.

Board members and current and former employees of SDC advocated for the agency to keep its community action status at a hearing last month.

SDC was created by state, county and city governments but functions outside of them.

Pertl acknowledged the commitment of former staff members who performed unpaid service in support of SDC’s work and the board’s desire to restore SDC in his letter.

“There is also an array of community members and leaders who contend SDC is unable to carry out its vital mission in light of the financial mismanagement, pending foreclosures, outstanding debts, eroded infrastructure and lack of urgency in finding resolution to these practical service delivery challenges,” Pertl wrote in the letter.

SDC provided a range of services to help low-income residents, such as tax support, career advancement, senior companionship and rent assistance.

What happens next?

Going forward, SDC has the option to request a review by the secretary of the Department of Health and Human Services within 30 days.

It could also voluntarily relinquish its community action status, which would allow the department and Milwaukee County to more quickly find an interim service provider to use SDC’s allocated funds for the year.

The letter noted that President Donald Trump’s administration proposed eliminating block grant funding to community action agencies in his fiscal year 2026 budget, making the program’s future uncertain.

The Department of Children and Families can now start conversations with other eligible entities, but cannot take over the funds intended for SDC until SDC’s de-designation is effective, according to Gina Paige, communications director for the department.

Sulton said the board will have to meet to determine SDC’s next actions, but he is concerned that the state, Milwaukee County and the city will choose to stop funding anti-poverty services.

“Really what this act amounts to is a withdrawing of their commitment to pursue anti-poverty programming,” he said.

Board members could not be reached for comment.

SDC faces more funding upheaval after state removes its Milwaukee County community action status is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Reading Time: 5 minutes

It appears that Milwaukee County is ready to work with the state to find a new community action agency to replace the Social Development Commission, the embattled agency that has provided anti-poverty services for more than 60 years.

In an email to NNS, a spokesperson from the press office of Milwaukee County Executive David Crowley stated: “Given the urgent need for supportive services in Milwaukee County, and in light of SDC’s ongoing challenges, we stand ready to work with the Wisconsin Department of Children and Families and other local partners to identify another eligible entity or entities who can receive (Community Services Block Grant) funds and provide needed services to county residents.”

The Social Development Commission, also known as the SDC, is eligible to receive these federal block grant funds administered by the state through its status as a community action agency, which the state is considering rescinding.

The email from the county was sent in response to a question about whether the Milwaukee County Board of Supervisors and the Milwaukee Common Council are required by state law to approve any decision to rescind SDC’s designation as a community action agency.

The background

The Wisconsin Department of Children and Families, or DCF, is scheduled to make a final decision on SDC’s community action status in the coming months.

DCF held a public hearing on April 4 to discuss SDC’s designation and future. At the meeting, some SDC board members and current and former employees testified about the crucial need to maintain the agency.

The department’s leadership said SDC has not created a realistic financial plan to restart services and perform its community action duties under the law, and it continues to have financial, programmatic, operational and service delivery concerns.

SDC reopened in a limited capacity in December after abruptly shutting down in April 2024, when problems included failing to pay employees and contractors on time and using grant dollars for one program to cover costs for another.

The agency has since missed state deadlines to pay employees their owed wages and also still owes some contractors for completed work.

 In addition, SDC’s property corporation, SD Properties Inc., is facing a foreclosure lawsuit and owes nearly $3 million in mortgage payments on its North Avenue buildings, according to court records.

Who’s responsible?

Jorge Franco, interim CEO of SDC and chair of its board, said Wisconsin law requires both the Common Council and County Board of Supervisors to approve a decision to de-designate SDC as a community action agency before the state can take that action. 

Franco is referring to Wisconsin Statute 49.265, which states the following: “The approval of a community action agency may be rescinded but only if there is good cause and if the decision to rescind is made by both the legislative body of the county, city, village or town that granted the approval and the secretary.”

According to the organization’s former website, SDC became a community action agency in 1964, shortly after the Economic Opportunity Act created the Community Action Program.

Because SDC was established through a collaboration that involved the city, county and other organizations, there is a lack of clarity over which legislative body actually granted SDC’s approval as a community action agency.

It’s also unclear which legislative body must weigh in on the commission’s potential de-designation based on state statute.

According to a spokesperson from the Milwaukee County Executive’s Office, a review of records found that the county board and the city of Milwaukee enacted an ordinance establishing SDC as a commission, but not specifically as a community action agency. 

“We have not found any records indicating that the County Board ever took any action relative to SDC’s status as a CAA,” an email from the Milwaukee County Executive Press Office said.

Because the county board did not approve SDC’s status as a community action agency, it does not have the authority to rescind that status, the Milwaukee County Executive Press Office’s email said. 

Jeff Fleming, a spokesperson for Mayor Cavalier Johnson, said the city’s responsibility in the potential de-designation of SDC as a community action agency has been a topic of discussion.

“The first impression from the city side is that it was the county that ‘granted the approval,’” Fleming said in an email, referring to SDC’s status as a community action agency. 

NNS also reached out to Milwaukee City Attorney Evan Goyke for comment on the issue, but he hasn’t responded. 

The Department of Children and Families was also questioned about which legislative body granted SDC approval to be a community action agency. 

“This is the first time the Department of Children and Families has sought to de-designate a community action agency,” said Gina Paige, communications director for DCF.  “As such, we are working closely with the federal Office of Community Services and Milwaukee County to determine what the process would need to be should we move forward with de-designating SDC.”

According to Franco, the state operates under a federal mandate to provide the types of anti-poverty services that SDC had provided for decades.

He said without SDC, those services could be delayed by several years.

“The bottom line point is that infrastructure is there. It must be activated immediately,” Franco said. 

Money, Franco said, is needed to help the agency climb out of debt and, more importantly, relaunch vital services to low-income residents in the county.

“SDC intends to pay every dollar it owes. First things first. Get anti-poverty services ready to go through SDC, which is ready to go today and that should not be delayed any further,” Franco said.

Some elected officials weigh in. Most stay silent.

State Sen. LaTonya Johnson said that she’d like to see SDC rebound from its troubles.

“SDC has been in the community for many years providing pivotal services for the community and this community can’t afford to lose those services,” she said.

Still, she said, given the significant mismanagement of funds at SDC, she understands that the Department of Children and Families will make a decision it feels is in the best interests of residents.

“Whatever decision they make, I’ll have to back it just like other elected officials will because we have to believe that they’re making the choice that’s best for taxpayers,” she said. “I’m hoping that the state will have a way to make sure that services will be provided, whether it’s SDC or not.”

Ald. Sharlen Moore also hopes to see SDC survive.

“They provide a critical need to our community, and so what I would hope is that they would find the necessary help or support that they need in order to get back on track,” Moore said. “It’s such a huge void.”

Like Johnson, she also acknowledges the challenges of providing funding to an organization with an uncertain future.

“It’s hard giving someone money without knowing how they are going to move forward,” she said.

Rep. Gwen Moore said it is important to center the people who have been majorly affected, like residents who lost services and former employees who are still owed pay.

“The serious concerns raised by the state must be addressed, and I hope the result of this process moves us closer to resuming these vital services to my constituents,” she said.

NNS reached out to more than 20 elected officials from the city, county and state government for comment on SDC’s future, including Common Council President Jose Perez and Milwaukee County Board Chairwoman Marcella Nicholson. Only three elected officials chose to speak.

What’s next?  

Despite the current challenges, Franco said that he is confident SDC will bounce back and that the history of the organization is proof of its effectiveness in fighting poverty.

“SDC has a legacy of generations of people who’ve been helped by SDC, and they still live in the community,” he said. “Whatever its issues were in recent times, the long-standing legacy and the number of people who have been helped must not be forgotten.”

Milwaukee County appears ready to find replacement for Social Development Commission is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Reading Time: 3 minutes

Adults who plan to fly within the U.S. or visit a military base or federal buildings on or after Wednesday, May 7, will need a Real ID or other Transit Security Administration-approved documentation.

Here’s what you need to know to get a Real ID in Wisconsin before enforcement begins.

What is a Real ID?

A Real ID is a state-issued driver’s license or identification card that meets security standards of the federal REAL ID Act, which Congress enacted in 2005.

Wisconsin-issued Real IDs are marked with a star in the upper right corner. You can check if your Wisconsin ID is a Real ID here.

Over 64% of Wisconsin residents now have a federally compliant driver’s license or ID card, according to the Wisconsin Department of Transportation Division of Motor Vehicles.

Can I still use another ID?

Starting May 7, a Real ID-compliant driver’s license or identification card, or another TSA-acceptable form of identification, will be required for domestic air travel or visiting U.S. military bases or federal buildings.

The Wisconsin DMV offers both Real IDs and non-compliant IDs.

You do not have to apply for a Real ID if you have no plans to fly or visit a federal building, or if you have another accepted form of identification, like a valid U.S. passport.

You can continue to use your current driver’s license or ID for other identification purposes until its expiration date.

How to get a Real ID

You can apply to get a Real ID online or through a local branch of the Wisconsin DMV.

Using the DMV’s interactive driver licensing guide, you can start an application online, print out a checklist of required documents and schedule an appointment.

Appointments are not required, but the DMV is seeing an increase in visitors as the Real ID enforcement deadline approaches, a department spokesperson said.

What documents do I need to bring?

When you apply, you must provide additional documentation in the form of an original document or certified copy (not a photocopy, fax or scan) from each of the following categories, according to the Department of Transportation.

Some documents can apply to multiple categories, but others may only meet the requirements of one category.

The document categories include:

• Proof of name and date of birth.
• Proof of legal presence in the U.S.
• Proof of identity.
• Proof of name change (only if your name is different from what’s on your birth certificate).
• Proof of address (two forms)
• Provide your Social Security Number.

How to get a copy of your birth certificate or name change documents?

If you were born in Wisconsin, you or an immediate family member can request a copy of your birth certificate online through the Department of Health Services..

This process also requires forms of identification. The cost of the certificate is $20, plus $3 per additional copy.

If you are a U.S. citizen born outside Wisconsin and need a birth certificate, check this guidance.

The simplest way to provide proof of a name change is to bring a valid, unexpired U.S. passport in your current name when you apply for a Real ID. If you don’t have that, you will need to provide documents to support each name change from birth to the current date.

How will the TSA enforce the deadline?

Travelers planning to fly within the U.S. without compliant identification could face delays, additional screening and possibly not be allowed into an airport security checkpoint, according to the Transportation Security Administration.

TSA accepts some other forms of identification.

Minors are not required to have a Real ID, but it is required of adults accompanying them to travel. 

Meredith Melland is the neighborhoods reporter for the Milwaukee Neighborhood News Service and a corps member of Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues and communities. Report for America plays no role in editorial decisions in the NNS newsroom.

Here’s how to get a Real ID in Wisconsin as new requirements start May 7 is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Reading Time: 3 minutes

The Social Development Commission’s property corporation faces a foreclosure lawsuit for owing nearly $3 million in mortgage payments on its North Avenue buildings in Milwaukee, according to court records.

SD Properties Inc. is the tax-exempt corporation that owns the buildings of the Social Development Commission, or SDC.

Forward Community Investments Inc., a community development financial institution with Madison and Milwaukee offices, filed a complaint March 27 against SD Properties and SDC with the Milwaukee County Circuit Court.

SD Properties owes Forward Community Investments approximately $2.3 million in principal and interest for a 2020 construction mortgage and about $679,000 for a 2023 mortgage, for a total of just under $2.98 million, according to the complaint.

“FCI would be thrilled to see the critical services provided by CR-SDC return to the community,” said Ryan Zerwer, president & CEO of Forward Community Investments, in a statement. “However, the past 12 months, communication from SD Properties, Inc. has failed to provide sufficient information on actionable plans to fully resume operations and start meeting their financial obligations.”

SDC has been in turmoil since last April after it abruptly stopped operations and laid off staff. The agency reopened in December and is now preparing for a public hearing on its community action agency status.

William Sulton, SDC’s attorney, confirmed that SD Properties is in default on its mortgage payments.

“SDC has been in discussions with FCI about what kind of remedies they intend to pursue, so I guess it’s not a complete surprise,” Sulton said.

“I think the impact of the foreclosure case is it puts the North Avenue building at risk, and if there is no North Avenue building, then that is the majority of programs that SDC had in ’23.”

SDC also is listed on the lawsuit as a defendant as a guarantor for SD Properties.

Background and timeline

Forward Community Investments has been a lender to SD Properties since 2015 through its Community Development Loan Fund, which provides “financing to nonprofit organizations and community organizations for mission-focused projects that will work to reduce racial and socioeconomic disparities across the state of Wisconsin,” according to the complaint.

SD Properties entered into a construction mortgage on Jan. 22, 2020, of approximately $1.98 million plus interest, and then modified the agreement on July 22, 2020, to increase the total amount to $2.36 million.

In March 2023, SD Properties entered into a separate agreement in which it would owe about $665,000 and interest for a mortgage of five property parcels, which include the main office at 1730 North Ave., a warehouse at 1810 North Ave. and parking lots, according to court documents.

SD Properties defaulted on a “significant loan” in April 2024, according to Zerwer.

SD Properties also defaulted because it did not pay the entire amount of debt and interest owed for 2020 mortgage by the end date, or maturity date, of Dec. 22, 2024, according to the complaint.

Forbearance action stalled

Before the legal filing, Forward Community Investments presented SD Properties in the fall with a forbearance agreement, in which it would refrain from immediately collecting the obligations due from SD Properties, and revised it several times. 

However, Zerwer said revisions on the agreement reached an impasse in March.

SDC board members discussed a “time-sensitive” resolution related to SD Properties at an emergency meeting on March 24 and decided to postpone taking action.

“We’ve been doing many strategic moves to prevent the foreclosure of this building and possibly a deficiency judgment against our Teutonia (location),” said Vincent Bobot, an SDC commissioner and chair of the SD Properties board, at the meeting.

“If there’s not a foreclosure, it means it’s still going to be drawn out and still take quite some time, but nevertheless, we want that time,” he said.

Board members planned to return to the item at a later meeting so they could discuss it directly with Sulton, who was not at the meeting.

The forbearance agreement would allow SD Properties to keep the North Avenue main office and the 18th Street warehouse, Sulton said, but SDC’s main issue now is having no funding.

“Even if we win the lawsuit, without any funding, we’ll just end up with another lawsuit down the road,” Sulton said.

Legal proceedings

SD Properties has retained attorneys from Kerkman & Dunn to represent it in the foreclosure case, Sulton said.

SDC and SD Properties have 20 days to respond to the summons and complaint before the case proceeds in court.

“We feel we have been patient and extended every opportunity to the leadership of SD Properties, Inc. to work in partnership with us to resolve the loan default,” Zerwer said. “In fact, we call upon SD Properties, Inc. to once again work with us on a forbearance plan.”

Public hearing Friday on SDC

The Wisconsin Department of Children and Families is hosting a public hearing on SDC’s designation as a community action agency from 11:30 a.m. to 1 p.m. on Friday, April 4.

The hearing will be held in the Milwaukee State Office Building, 819 N. 6th St., in Conference Rooms 40 and 45 on the first floor.

Milwaukee Social Development Commission buildings face foreclosure risk is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Reading Time: 3 minutes

Some Milwaukee organizations are starting to feel the effects of federal funding cuts, the result of Trump administration efforts to shrink the federal government and make it more efficient.

Although many attempts to roll back funding face legal challenges, and the federal and state budgets are under review, neighborhood and advocacy-focused organizations in Milwaukee are making difficult decisions around staffing, program planning and fundraising as they wait for answers.

“I think the biggest challenge for us is just the uncertainty of the situation,” said Bill Schmitt, executive director of Rooted & Rising, a social service agency based in Washington Park.

Uncertainty impacts staffing

Uncertainty around funding led the Hmong American Women’s Association to cut its staff from 11 to four people. 

Vina Xiong, education and outreach director at HAWA, said 63% of the organization’s budget relies on federal funds.

“We had to do this because a lot of the federal grants covered our staff pay, and without us really knowing if we’re going to be getting the funds, we couldn’t allow to keep anyone on our team without paying them fairly,” Xiong said.

HAWA receives funding to advocate for domestic abuse and sexual assault survivors through the Victims of Crime Act, or VOCA, and other grant programs administered by the state Department of Children and Families or End Domestic Abuse Wisconsin.

Schmitt said the first funding cut to directly impact Rooted & Rising is tied to Section 4, a capacity-building and community development grant program from the U.S. Department of Housing and Urban Development.

The Associated Press and Bloomberg CityLab reported that HUD terminated awards in February to at least two of three national organizations that distribute Section 4 grants to local community organizations, including Local Initiatives Support Corp., or LISC.

LISC Milwaukee distributed $225,000 in Section 4 grants to four local organizations with contracts ending between February and May, according to Theodore Lipscomb, executive director of LISC Milwaukee.

Lipscomb said the grants are foundational to LISC’s efforts to help other organizations become prepared to develop new work and pull in other investments, especially with affordable housing projects. 

“It can include a portion of staffing,” Lipscomb said.

“It also can be about organizational capacity, like making sure that you have good, strong financial oversight and governance and that sort of thing to make sure that you’re successful long term.”

LISC plans to appeal the Section 4 cancellations.

Rooted & Rising used its $50,000 community development grant, ending in March, to support neighborhood engagement. Losing that funding would impact the work, Schmitt said, but it is not fully reliant on one grant.

“But if it’s a sign of things to come, it certainly becomes a much bigger problem for us,” Schmitt said.

Supporting projects and programming

VIA CDC, a community development corporation serving the neighborhoods of Silver City, Burnham Park and Layton Park, also received a $50,000 Section 4 grant from LISC Milwaukee that it used to pay staff salaries.

“My fingers are crossed that there will be a resolution that comes forward that allows us to apply for this funding or some version of it,” said JoAnna Bautch, executive director of VIA CDC.

Bautch said she doesn’t think the grant changes will cause VIA to make staffing changes, but it may have to reallocate some other funding.

VIA’s Section 4 contract ended at the end of February, but Bautch said LISC offered support to the organizations for 30 days after the grants were halted.

LISC Milwaukee had planned to distribute another award of $420,000 to extend contracts to four organizations and provide contracts to five additional organizations – all of which are currently suspended, according to Lipscomb.

“Then what that really means is that there’s a project somewhere that’s going to stall because someone’s not going to be working on it,” Lipscomb said.

Thinking about funding alternatives

At HAWA, Xiong said the organization has been able to submit reimbursements to cover pay and services so far this year, but that the organization’s leadership team is thinking about ways to pursue other funding.

“I think this current situation makes us really think about where else we need to look, in terms of more stable funding or funding that can also help support advocacy work that doesn’t rely on federal state funding so much,” Xiong said.

Bautch and Schmitt both said they are working to identify alternative sources of funding.

“I see our philanthropic funders wanting to step up to the plate,” Bautch said. “I had a brief conversation with folks at Zilber Family Foundation who give us a lot of support, and they are trying to strategize on how they can support us.”

How you can help

HAWA, Rooted & Rising and VIA recommend following their social media accounts and newsletters for updates, contacting your senators and representatives, or donating to their programs to show support for their work.

“For the most part, what we’re talking about here are really essential services for our community that are being provided by agencies like ours, that are mission-driven and meeting real needs for the community, and it’s really vital that those programs continue,” Schmitt said.

News414 is a service journalism collaboration between Wisconsin Watch and Milwaukee Neighborhood News Service that addresses the specific issues, interests, perspectives and information needs identified by residents of central city Milwaukee neighborhoods. Learn more at our website or sign up for our texting service here.

How Milwaukee’s community organizations are responding to federal funding cuts is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Reading Time: 3 minutes

Columbia Savings & Loan Association spent 2024 celebrating its 100th anniversary as Wisconsin’s oldest and now only Black-owned bank.

As it moves forward, Columbia’s leadership wants to modernize while continuing to serve Milwaukee’s Black and underserved communities by helping more families own homes in their neighborhoods.

After Milwaukee native Sharon Adams moved back to her parents’ home in Lindsay Heights in 1997, she opened up an account at the nearby savings and loan association at 2020 W. Fond du Lac Ave. with her cousin when they learned its history.

“It’s a bit of a mystery to me that Columbia has survived without a merger throughout these years and it’s still, for me, the place to go and support and I would expect to be supported,” said Adams, who is a founder of Walnut Way Conservation Corp., a nonprofit focused on community-led development in Lindsay Heights.

The Halyards and Columbia’s history

Wilbur and Ardie Clark Halyard founded Columbia Savings & Loan Association in 1924 to help Black people secure home loans when redlining and racial covenants restricted housing options and banks discriminated against Black people.

The Halyards moved from the South to Beloit in 1920, then to Milwaukee in 1923, advocating for the rights of African Americans along the way, according to Clayborn Benson, director of the Wisconsin Black Historical Society, 2620 W. Center St., Milwaukee.

“People wanted to buy their homes, and the Halyards made it possible to be able to do that,” Benson said.

The Halyards worked hard (and without pay for many years) to establish the association, which survived through social, economic and political changes to Milwaukee and the country.

“It’s one of those things where you knew if you needed to get a loan, or you wanted to buy a house, they would work with you, whereas other more traditional institutions might overlook you,” said Steven DeVougas, chairman of the North Avenue Marketplace Business Improvement District 32.

The bank’s lasting impact on Milwaukee can especially be felt in Halyard Park, where the Halyards worked closely with real estate agent Beechie O. Brooks to finance homes in a new development after the construction of Interstate 43.

Modernizing the mission-focused bank

Ernest Jones, the chair/president and CEO of Columbia Savings & Loan Association since 2022, said the bank has stayed true to its mission but needs to modernize.

As a savings and loan association, Columbia offers savings accounts, loans, mortgages and certificates of deposit.

Jones said he understands the limitations of Columbia’s niche market and model — it has no checking or online banking, but has built relationships with customers and partner banks.

“We need money to advance our technology, and it’s going to be a significant investment,” he said.

In addition to pursuing technology updates, Columbia has added new staff and plans to add new board members.

Seeking new deposits

The Republican National Convention Host Committee, Horicon Bank and other banks and institutions have made deposits to Columbia, bringing in new funding to support the bank’s lending efforts to local homebuyers.

The Wisconsin Black Chamber of Commerce committed to depositing $1 million in Columbia Savings & Loan Association in 2023. Ruben Hopkins, the chamber’s chairman and CEO, said the amount is small compared to what other institutions could deposit to support the bank.

“I congratulate them on being around for 100 years, and I’d like for them to be around for 100 more,” Hopkins said. “But again, if they don’t get the resources they need, it’s just something for the history books.”

Still focused on homeownership

Columbia’s mission stays relevant because the ZIP codes around the bank, 53205 and 53206, have some of the highest rates of poverty in the state, and mortgage payments can be more affordable than rent, Jones said.

“​​A part of our mission is not only to put people in homes, but to educate our community on the value of homeownership,” Jones said. “It extends to everything else economically and financially for people’s lives.”

News414 is a service journalism collaboration between Wisconsin Watch and Milwaukee Neighborhood News Service that addresses the specific issues, interests, perspectives and information needs identified by residents of central city Milwaukee neighborhoods. Learn more at our website or sign up for our texting service here.

Wisconsin’s only Black-owned bank moves into new century is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.