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Although President Donald Trump’s “One Big Beautiful Bill Act” offers new tax deductions and credits across different income levels, low-income households – the bottom 20% of income earners – are largely excluded from any significant tax benefits. 

“It’s particularly shocking because the law is so big,” said Elaine Maag, a senior fellow at The Urban-Brookings Tax Policy Center. “Typically, when trillions of dollars are spent, you see it really spread across the income distribution.”

The bill was signed into law over the summer.

Benefits that people with low incomes do receive may be outweighed when considered alongside other provisions in the bill, said Andrew Reschovsky, professor emeritus of public affairs and applied economics at the University of Wisconsin-Madison.

This is especially true of cuts to safety net programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, Reschovsky said.

“This is the dilemma – if you count those things in with the tax side, the net will be that a lot of people are going to be worse off.”

Credits and deductions

A credit is an amount subtracted directly from the tax you owe while a deduction reduces the amount of income that can be taxed. Both can help keep more money in taxpayers’ pockets. 

The bill establishes new credits and deductions. 

The bill increases the: 

• Child Tax Credit from $2,000 per qualifying child to $2,200.  
• Child and Dependent Care Credit, which allows taxpayers to subtract certain costs associated with caring for children under 13 or dependents incapable of self-care. 

The bill introduces new deductions for:

• Workers in jobs where tips are common, allowing them to deduct up to $25,000 of tip income. 
• Individuals who work overtime, allowing them to deduct up to $12,500 of overtime pay. 
• People 65 and older, allowing them to deduct $6,000. 

Limitations

These changes may appear to help people who are financially struggling. But the bill affects federal taxes, so its new deductions and credits apply only to income taxable by the federal government. 

People with low income generally owe little or no federal income tax. 

Older low-income adults, for example, often rely primarily or entirely on Social Security benefits and are generally not subject to federal taxes. This means that a new $6,000 deduction would not benefit them, Rechovsky said.   

Rechovsky noted other reasons the new deductions are misleading or extremely narrow. 

“Yes, you’re a waiter and you benefit from not paying taxes on your tips,” he said. “But take someone in the same income range who works as a home health care worker – they don’t benefit at all.” 

Reschovsky also questions how those with low incomes would benefit from reducing the amount owed on overtime pay. 

“One of the reasons some people are low-income is that they’re lucky to get a 40-hour workweek,” he said. 

The same limitation applies to the new credits. 

An analysis by Maag estimates that in 2025 about 17 million children under 17 – or one in four – will receive less than the full value of the Child Tax Credit because their parents earn too little.

The bill also changes which families qualify based on citizenship status.  

The Child Tax Credit will be limited to children who are U.S. citizens and have at least one parent with a valid Social Security number. 

About 2 million U.S. citizen children will lose their Child Tax Credit because of this new requirement, Maag wrote, citing an analysis from the Joint Committee on Taxation. 

Safety nets

One benefit to people with low incomes from the bill is that it makes permanent many provisions from the 2017 Tax Cuts and Jobs Act, including lower income tax rates and larger standard deductions. 

“It’s true across the board that if taxes go down, your income after taxes goes up,” Reschovsky said. 

But for those with low incomes, the increase is minimal and will likely be outweighed by changes to Medicaid, premium subsidies provided by the Affordable Care Act and changes to SNAP. 

For example, the lowest 10% of earners may see a $1,600 reduction in annual income and benefits, mainly due to cuts in Medicaid and SNAP, according to the nonpartisan Congressional Budget Office. 

“It’s just that classic view … that, ‘Well, these people are just sucking on the teat of the federal government, so we’re going to just make it as hard as possible for them to do that, because they’re just freeloaders,’” said Anthony Myers, program director of the Riverworks Financial Clinic.

Where to get help

For people with incomes under $67,000, free tax assistance is available through programs such as the IRS’ Volunteer Income Tax Assistance, or VITA. 

VITA sites can be found using the IRS Free Tax Prep Help website. 

Maag and Myers recommend making appointments as soon as possible. 

In addition to serving as a VITA site, Riverworks Financial Clinic operates year-round as the City of Milwaukee Financial Empowerment Center. 

Residents of the city who are 18 years and older can get free one-on-one financial counseling there. 

“Anyone that’s struggling with any of these (One Big Beautiful Bill Act) provisions, we can assist them with navigating through this,” Myers said. 

Here’s how Trump’s new tax law affects people with low incomes 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.

A man closes the entrance to Fort McHenry National Monument and Historic Shrine on Oct. 3 in Baltimore because of the federal government shutdown. States are currently covering costs of some federal programs, but it’s unclear whether they will be repaid once the government reopens. (Photo by Andrew Harnik/Getty Images)

States are doing what they generally do during a federal government shutdown: continuing to operate programs serving some of the neediest people.

That means schools are still serving federally subsidized meals and states are distributing funding for the federal food stamp program. For now.

If the shutdown drags on and federal dollars run out, states can only keep programs going for so long. States may choose to pay for some services themselves so residents keep their benefits.

But this time, state leaders have new worries about getting reimbursed for federal costs once the federal spending impasse is resolved. That’s traditionally been the practice following a shutdown, but the Trump administration’s record of pulling funding and targeting Democratic-led states has some officials worried about what comes after the shutdown.

Many states already struggled to balance their own budgets this year. And some fear going without federal reimbursement for shutdown costs could force states to make painful cuts to their own budget priorities.

Nevada State Treasurer Zach Conine, a Democrat, said the administration has not made good on its word to states in recent months — freezing some congressionally approved funding and cutting already awarded grants. So it’s likewise unclear whether the federal government will follow previous practice and reimburse states for covering shutdown costs of crucial federal programs such as food assistance.

“I think everything is a risk with this administration. … We in the states are kind of left holding the bag yet again as the federal government tries to sort out what it wants to be when it grows up,” he told Stateline.

Nevada entered the shutdown with more than $1.2 billion in reserves. Last week, Republican Gov. Joe Lombardo’s office said in a statement that state funds would be adequate to cover “a short period of time with minimal disruption to services.”

But the governor’s office said a shutdown of more than 30 days would cause more significant challenges for the state.

Lombardo’s office did not respond to Stateline’s questions. But last week, it released a three-page document on the shutdown, saying it expected the federal government to reimburse states once the budget stalemate is resolved.

“As D.C. works through its issues, our administration will continue to support Nevadans in any way we can throughout this unnecessary federal government shutdown,” Lombardo said in the statement.

While mandatory programs such as Medicaid and Social Security continue to send funds to beneficiaries during the shutdown, funding for other safety net programs such as food assistance are more uncertain. The federal government told states there were enough funds for the food stamp program to cover October benefits, though the special food program for women, infants and children may run out of money sooner.

By furloughing workers and halting federal spending, the shutdown could cost the national economy $15 billion per week, President Donald Trump’s economic advisers estimated.

The White House says a prolonged shutdown will affect the economies of every state by reducing employment, federal benefits and consumer spending. White House estimates say this could cost Michigan $361 million per week in lost economic output, for example, while Florida could lose $911 million each week.

‘Fend for themselves’

Some federal services are shuttered during a shutdown: The Environmental Protection Agency has ceased many research, permitting and enforcement efforts, and official jobs data is no longer being released. Federal funds for other programs, including food assistance, are expected to last through the end of the month. But states can elect to spend their own funds on these programs, which were previously authorized by Congress and state legislatures.

Before the shutdown, states were stockpiling reserve funding. The National Association of State Budget Officers reported most state budgets this year maintained or increased rainy day funds. At the same time, state and local governments are borrowing record amounts: As much as $600 billion in municipal bonds is projected to be issued by the end of 2025.

“So states and localities are kind of getting the message they really need to fend for themselves much more than they ever had,” said William Glasgall, public finance adviser at the Volcker Alliance, a nonprofit that works to support public sector workers.

Since January, the Trump administration has stripped states and cities of billions of dollars that Congress approved for education, infrastructure and energy projects. Glasgall said that record leaves states with legitimate concerns about getting repaid for their shutdown-related expenses — a prospect that would likely spark even more lawsuits from Democratic-led states.

“They’ve already, before the shutdown, started rolling back federal funding, and I don’t see any reason why they would stop now,” he said. “The recissions that have been announced are pretty harsh, and it’s money we’re expecting and not getting.”

The last shutdown, which lasted five weeks during Trump’s first term, delayed billions in federal spending and reduced gross domestic product — the value of all goods and services produced — by $11 billion, the Congressional Budget Office estimated in 2019. Experts say states were repaid for costs they incurred providing federal services during that shutdown.

In Minnesota, State Budget Director Ahna Minge said staff have been studying previous shutdowns. But at a news conference with Democratic Gov. Tim Walz last week, she characterized this shutdown as “unpredictable.”

“The current federal administration may not follow the historic playbook,” she said.

Walz said farmers would be among the first hit as the federal Farm Service Agency has ceased operations in the middle of the state’s harvest season. Among other duties, that agency works on disaster assistance and processes loans during harvest to protect farmers against commodity price fluctuations.

Minge said Minnesota officials think programs like the Supplemental Nutrition Assistance Program and the Special Supplemental Nutrition Assistance Program for Women, Infants and Children have enough existing federal funds to operate through October. But she said the state budget cannot backfill all the commitments made by federal programs.

“What we know is that the longer a shutdown lasts, the greater the impact to state programs and services,” she said.

Connecticut Gov. Ned Lamont, a Democrat, has pledged to use state dollars to keep WIC afloat if needed, The Associated Press reported. And Colorado lawmakers set aside $7.5 million just before the shutdown to keep WIC running.

Already under strain

In Maryland, the shutdown is compounding the economic instability from Trump’s ongoing efforts to shrink the number of federal employees, agencies and spending.

With more than 160,000 federal employees, Maryland’s economy relies heavily on the federal workforce. The Trump administration has said it may deny back pay to hundreds of thousands of furloughed federal workers, despite a law he signed in 2019 guaranteeing such back pay.

Chief Deputy Comptroller Andrew Schaufele told lawmakers last week that a shutdown could cost the state $700,000 per day in lost tax revenue.

Democratic Gov. Wes Moore pledged to continue funding some federal programs, but said the state would not tap into its rainy day funds to do so.

“We’re going to continually evaluate how long we can go,” he said at a news conference.

As for getting repaid, Moore spokesperson David Turner told Stateline that the state had received no indication that the federal government would deviate from past practice, “but we are monitoring closely.”

This fiscal uncertainty hits states as they are already struggling to respond to the strain of federal agency layoffs and cuts in the major tax and spending law Trump signed this summer. The law slashed billions in social service funding and created costly new bureaucratic burdens for states, which administer Medicaid and food assistance programs.

“There’s no way, really at this point, to sort of assess with any level of confidence what’s going to happen when you also have these massive layoffs that were going on pre-shutdown,” said Lisa Parshall, a professor of political science at Daemen University in New York. “There’s just a real sense from states and localities — and I think rightly so — that that kind of reliability of the federal government is now in question.”

It may not be a question of whether states are reimbursed for their shutdown expenses, but which states are reimbursed, Parshall said. The Trump administration has publicly targeted funding of liberal-led states and cities over policy disagreements, raising the possibility it could do something similar with the shutdown.

“Whether it’s a good thing or a bad thing, you know, you could argue,” she said. “But it’s definitely a thing that seems to be adding to this level of uncertainty — this shutdown feels different.”

In California, officials just closed a nearly $12 billion shortfall when negotiating the budget that was approved in June. The budget deficit is expected to grow to more than $17 billion next year, said H.D. Palmer, spokesperson for the State of California Department of Finance, which advises the governor and state agencies on budget issues.

“There isn’t a long-term, open-ended line of credit available if this drags out,” he said of the federal government shutdown.

The depth of reserve funds available varies by federally funded program, he said. CalFresh, California’s name for its Supplemental Nutritional Assistance Program, has enough funds to cover food stamp benefits for this month, but anything beyond that is uncertain.

“If the duration of this is in the matter of days, it will be an inconvenience, but should not pose a massive problem,” he said. “However, if it does drag out for an extended period of time, then clearly it’s going to be a problem.”

Stateline reporter Kevin Hardy can be reached at khardy@stateline.org.

Sen. Dianne Hesselbein (D-Middleton) speaks at a press conference Wednesday morning about the Senate Democrats' "Affordable Wisconsin Agenda." (Photo by Erik Gunn/Wisconsin Examiner)

If there’s one word at the top of Democratic Party political discourse this year, it’s “affordability.”

Whether focused on a particular issue — child care, health care and housing are the most frequent examples — or on the cost of just about everything, making goods and services and life “affordable” figures high in the opening pitches of candidates across the state.

“I think the No. 1  issue that we need to focus on is affordability,” said Mitchell Berman, a Racine County nurse, when he announced in August he would seek the  Democratic nomination to challenge Republican U.S. Rep. Bryan Steil in Wisconsin’s 1st Congressional District.

Trevor Jung in Racine launched his state Senate campaign in September with a focus on “affordability” and “good-paying jobs.” Corrine Hendrickson, a former child care proprietor in New Glarus, said “affordability” is the top issue for her state Senate bid — and she wasn’t just talking about child care.

Democrats campaigning to be the party’s nominee for governor as diverse as David Crowley, Missy Hughes, and Francesca Hong have all uttered the word in introducing themselves to the public.

On Wednesday, the State Senate Democratic Committee had a press conference outside the Capitol to announce the Democrats’ focus on affordability, both for their upcoming legislative agenda and with an eye on the 2026 elections.

“Right now in Wisconsin, 65% of families are saying they are just getting by or they are struggling,” said Sen. Dianne Hesselbein (D-Middleton), the Senate minority leader. A spokesperson said the July Marquette University Law School poll was the source for the survey finding.

State Senate Democrats plan to spend the next few weeks traveling Wisconsin and hearing from state residents. Hesselbein said those conversations will become fodder for “tangible policy solutions that will help working families keep more of their hard-earned money, and we’re calling it the Affordable Wisconsin Agenda.”

Nathan Kalmoe, a University of Wisconsin political scientist, said via email that emphasizing poor economic conditions could be risky for Wisconsin Democrats running in state elections. While Republican lawmakers “may take some blame, the governor is a Democrat,” and voters tend to hold the chief executive responsible for economic conditions, he said. 

Kalmoe added that focusing on the economy exclusively at the expense of concerns for the most marginalized or concerns about Trump administration actions that threaten democracy would be “disturbing, and dangerous.”

Nevertheless, polling trends in the last several months suggest why Democrats nationwide have been focusing on inflation and the economy, said John D. Johnson, a research fellow and political analyst at Marquette University.

In Marquette polls shortly after President Donald Trump was elected to a second term in November, and again before he took office in January, 41% of adults nationally said they believed his policies would reduce inflation.

In Marquette’s most recent national poll, conducted in mid-September and released Oct. 2, “that had fallen to 25%,” Johnson said in an email to the Wisconsin Examiner. “Meanwhile, the share believing Trump’s policies would increase inflation grew from 45% to 60%.”

In the September poll, 40% of adults named “inflation and the cost of living” as the top issue in the U.S. “Another 19% chose ‘the economy’ more generally,” Johnson said.

“Overall, 29% of adults approved of Trump’s handling of ‘inflation and the cost of living’ while 71% disapproved,” Johnson said. (On “border security,” meanwhile, 55% of those polled approved Trump while 45% disapproved.)

In May, 68% of Republicans and 23% of independent voters told the Marquette pollsters they approved of how Trump was handling “inflation and the cost of living.” By September, Republican support had slipped to 57%, but among independents, support had plummeted to 14%.

“In other words, this is (1) an issue where there is a lot of daylight between how Republicans and Independents rate Trump, and (2) an issue where Trump is falling with both Democrats and Independents,” Johnson said.

At the Senate Democrats’ news conference Wednesday, a succession of senators — along with one state representative who is a Senate hopeful — spoke of how the issue of affordability cuts across a wide range of topics. And each laid blame for inaction on their Republican rivals.

“Senate Democrats have already been leading the fight to lower the cost of housing, whether trying to expand the homestead tax credit or preventing hedge funds from buying up available housing stocks, but undoubtedly more needs to be done,” said Sen. Jeff Smith (D-Brunswick).

Rep. Jenna Jacobson (D-Oregon), who has the endorsement of the Senate Democrats as she seeks the party’s nomination in the 17th Senate District next year, pointed to “reckless federal policies” hitting farmers and hiking grocery bills.

Democratic state lawmakers have proposed a free school meal bill along with grants for farmers who provide food to food pantries, replacing a federal program cut by the Trump administration, she said; both are “examples of some of the kinds of policies that we can advance to lower everyday costs.”

Sen. Kristin Dassler-Alfheim (D-Appleton) warned of coming spikes both in health insurance costs and in the rates of people without health insurance because of the expiring Affordable Care Act premium subsidies at the center of the federal shutdown fight in Congress. “We need Congress to get to work and renew these ACA subsidies,” she said.

Meanwhile, bills in the state Legislature to lower prescription drug costs and cap the price of asthma medication “haven’t even gotten a public hearing,” Dassler-Alfheim said. “We could be doing more here in Wisconsin to make life a little bit more affordable for everyone.”

Sen. Sarah Keyeski (D-Lodi) said Wisconsin continues to face “a child care crisis,” with too few options for working families. Care is increasingly costly, “not because child care providers are making huge profits,” she said. “It’s because we can no longer underpay those doing the child care work, mostly women.”

Democrats have been pushing for expanding child care support, “yet Republicans in Madison stand in the way every single time,” Keyeski said.

Hesselbein said that the Senate Democrats hope that they can follow up on their conversations with voters across the state by “bringing those ideas back to the state Legislature, working on them and hopefully being able to pass them in a bipartisan manner.”

At the same time, however, she blamed inaction on Republican lawmakers who “are mired in internal conflict, unwilling to cross the aisle and get stuff done for Wisconsinites.” The  2026 election will enable voters to “turn the page,” she said, “and vote for a vision that puts Wisconsinites first, that puts you and your families first.”

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Wisconsin’s commissioner of insurance says the stalemate over Affordable Care Act subsidies at the heart of the government shutdown is already affecting available health insurance options. 

The post Wisconsin insurance commissioner urges extension of ACA tax credits as open enrollment nears appeared first on WPR.

Microsoft will not move forward with a data center development in a Racine County community and will look to find a new site for the project.

The post Microsoft scraps plans for Caledonia data center site, working to find an alternate location appeared first on WPR.

“Cranberries and cranberry farming were here before Wisconsin was Wisconsin,” a state cranberry association leader said. “Even before Wisconsin was fully a state within our country, there were people here growing and commercially raising cranberries.”

The post Wisconsin cranberry harvest marks peak season for growers, economy appeared first on WPR.

Terror on the Fox is a haunted house in Ashwaubenon that’s open several nights a week through Nov. 2. This year marks the attraction’s 29th season.

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The city of Ashland is seeking outside input on potential new uses of the shuttered Northland College campus.

The post Northern Wisconsin city seeks redevelopment options for closed Northland College appeared first on WPR.

Oil pumpjacks are seen in a field near a wind turbine in April in Close City, Texas. Weak oil prices have led to recent energy layoffs in Texas and North Dakota. (Photo by Brandon Bell/Getty Images)

Friday’s jobs report is missing in action because of the federal shutdown, but economists are finding other ways of measuring apparent job losses concentrated in Midwestern states and oil country.

Unemployment could continue to rise, especially for Black people, who have borne the brunt of recent job losses.

Friday’s jobs report for September was missing because of the federal government shutdown. The U.S. Bureau of Labor Statistics staff responsible for collecting, analyzing and releasing the data have been furloughed since Wednesday.

The jobs report is useful to economists, government agencies such as the Federal Reserve, and investors trying to gauge the state of the economy, said Elise Gould, senior economist for the left-leaning Economic Policy Institute. If the data is missing for an extended time, it could distort such forecasts, she said.

“We still have some information on the economy from other sources, yes. None of the other indicators predict perfectly. There’s no replacement for the data,” Gould said.

Still, other groups are using their own measuring tools and sharing that information. ADP, a private payroll processing company, showed a decline of 32,000 jobs for the month of September.

The result “further validates what we’ve been seeing in the labor market, that U.S employers have been cautious with hiring,” ADP’s chief economist, Nela Richardson, said in a statement.

Austan Goolsbee, president and CEO of the Federal Reserve Bank of Chicago, said in an appearance on CNBC Friday morning that the available data shows weakness in both the labor market and in attempts to control inflation, making the Fed’s job difficult in deciding whether to stimulate the economy or rein it in.

“You’re seeing deterioration on both sides of the mission,” Goolsbee said. “The BLS data is the best in the world, and it does create difficulties when you’re kind of putting up a screen and you can’t see the data.”

Indiana, while gaining some new jobs in the Kokomo area for car parts and batteries factories, saw September layoffs of more than 1,600 workers, according to state figures. That includes 248 hospitality workers at a convention center in Evansville, 200 warehouse workers at a Target distribution center in Indianapolis, 123 layoffs at a security guard firm that lost a federal contract, and layoffs at two automotive parts factories totaling 189 workers.

Ohio also saw layoffs of 768 workers starting in September at a Kohl’s e-fulfillment in Middletown.

Black unemployment, which has spiked from 4.8% in April 2023 to 7.5% in August, has likely increased again, said Joseph Dean, who monitors it for the National Community Reinvestment Coalition, which encourages more investment in underserved communities.

“If there were a jobs report, I’d expect a rise in the Black unemployment rate,” Dean said. “It’s likely due to a combination of factors: federal layoffs earlier in the year, anti-DEI efforts, and now primarily, stagnation in industries that employ large numbers of Black workers — like transportation and professional/business services.”

Another indicator of labor market trouble, initial claims for unemployment, were up 85% in North Dakota and 44% in Texas from August to September, according to numbers through the week ending Sept. 20 from the U.S. Department of Labor. Weak oil prices have led to recent energy layoffs in those states.

In another private survey that could help gauge the health of the labor market, outsourcing firm Challenger, Gray and Christmas reported Thursday that companies have reported more than 54,000 job cuts in September. That’s a slower rate than August but brings the total this year to 946,000 job cuts, the highest since the pandemic in 2020 and up 55% from the first three quarters of 2024.

The leading reason for job cuts has been actions by the Trump administration’s Department of Government Efficiency task force, the firm said, including cuts to government jobs and “downstream impacts” of the federal cuts, such as loss of funding to nonprofits.

There were also about 7,000 technology jobs lost to AI disruption in September, making it harder to land entry-level jobs, the firm said.

“Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology,” said Andy Challenger, a labor expert at the firm, in a statement.

In August, some of the largest increases in the unemployment rate over the previous year were in Texas cities on the border with Mexico: 2 percentage points each in Brownsville-Harlingen (to 7.5% from 5.5% in 2024) and Eagle Pass (to 8.9% from 6.9% last year). Those metro area estimates for August were released Oct. 1.

Cedar Rapids, Iowa, saw a 1.8-point increase in unemployment from 3.6% to 5.4%, and there were 1.7-point increases in Blacksburg, Virginia (from 4% to 5.7%), and Grants Pass, Oregon (from 6.1% to 7.8%).

Unemployment fell the most in Kokomo, Indiana, (down nearly 4.5 points from 10.7% to 6.2%) where Stellantis has been adding jobs in its automotive parts and batteries plants.

An earlier Stateline analysis showed New Jersey and Virginia were among the states most impacted by job losses in the second quarter of the year as federal cuts and corporate restructuring took a toll.

Stateline reporter Tim Henderson can be reached at thenderson@stateline.org

A builder frames a house under construction. An Assembly committee advanced a dozen bills Thursday, with several aimed at expanding the construction of affordable workforce housing. (Spencer Platt | Getty Images)

A dozen bills, some aimed at addressing the need for affordable workforce housing according to their Republican authors, passed the Assembly’s Housing and Real Estate Committee Thursday, with all but three gaining bipartisan support.

Several of the measures have already been put on the tentative calendar for the Assembly floor session scheduled for Tuesday, Oct. 7.

AB 182, would modify Wisconsin’s low-income housing tax credit and require the Wisconsin Housing and Economic Development Authority (WHEDA) to ensure that 35% of the tax credits it allocates are for projects in rural areas of Wisconsin.

AB 449 would require local municipalities with zoning to permit accessory dwelling units on the property of existing single family homes.

AB 451 would create residential tax incremental districts, to encourage residential developments with the resulting increases in property tax collection used to fund infrastructure investment. That measure passed the panel 12-2.

AB 454 would establish a workforce home loan fund through WHEDA to provide gap financing for new construction or significant rehabilitation of a single family home for the borrower.

AB 455 would establish a grant program at WHEDA for the owners of apartment buildings to offset converting their properties to condominiums. In an unanimous vote, the committee approved an amendment from state Rep. Lori Palmeri (D-Oshkosh) requiring grant recipients to give current occupants in a building being converted an opportunity to purchase their unit.

State Rep. Ryan Clancy (D-Milwaukee) persuaded a majority of the committee, including four Republican members, to adopt an amendment allowing the proposed grants to be used for conversions to housing cooperatives as well as condominiums.

“Housing co-ops are an important alternative for households in our communities that lack the means to individually purchase and maintain stable housing,” Clancy said in a statement issued after the vote. “They provide the assurance of predictable costs, create the potential for innovative forms of cost sharing and cost reduction, and help strengthen the communities that embrace this well-proven model.”

Clancy’s statement also included a thank-you to the Republicans who voted with the committee’s five Democrats to pass the amendment, as well as the committee chair, Rep. Robert Brooks (R-Saukville), “for giving my proposed amendment to AB 455 a fair hearing.”

Clancy’s statement prompted Sen. Steve Nass (R-Whitewater) to email Republicans and Democrats in both chambers castigating Clancy and the Republicans who voted for his amendment for adding “communes” to the bill.

Four other bills involved largely technical matters, one lowering real estate transfer fees, one updating the requirements for renting mobile homes, one enabling subdivision developers to certify that improvements comply with state requirements, and one on changes in real estate practices for single- to four-family homes. All passed with unanimous or nearly unanimous votes.

Divided on party lines

Committee members split on a bill that would allow landlords to demand a written statement from a licensed health professional attesting to a tenant’s need for an emotional support animal.

The bill’s author, state Rep. Paul Tittl (R-Manitowoc), asserted at a public hearing that there was a “rising trend of emotional support and service animal misrepresentation in Wisconsin.” All nine committee Republicans voted for the bill and all five Democrats against it. 

On a second party-line vote, a bill giving developers an automatic rezoning right for residential projects if they met certain conditions passed with only the Republicans voting in favor.

The committee also passed on party lines legislation that would put off the effective date of Wisconsin’s updated commercial building code until April 1, 2026.

The building code update had been blocked in 2023, but a state Supreme Court ruling this July held that state laws giving the Legislature the power to block executive branch administrative rules indefinitely were unconstitutional.

After the Court’s ruling, the Department of Safety and Professional Services moved ahead to promulgate the new code, originally setting a Sept. 1 starting date. The department later postponed the effective date to Nov. 1.

In addition to the committee’s 9-5 vote Thursday on the bill postponing the date again, 29 Republican lawmakers sent DSPS Secretary-designee Dan Hereth a letter Wednesday also seeking to postpone the effective date to April 1. 

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Wisconsin manufacturers are more confident about the economy than they’ve been since 2021, despite nearly three-quarters saying they’ve been affected by tariffs.

The post Wisconsin manufacturers bullish about the economy despite tariffs, survey says appeared first on WPR.

A federal government shutdown could affect around 18,000 civilian federal workers in Wisconsin. Many services will continue, but experts say the effects of this shutdown are hard to predict.

The post What does a government shutdown mean for Wisconsin? appeared first on WPR.

The New Jersey Capitol is pictured along the banks of the Delaware River in Trenton. A new analysis put New Jersey at the top of the list of states without enough funds to cover all government costs and debt obligations. (Photo by Dana DiFilippo/New Jersey Monitor)

Half of American states do not have enough funds to pay their bills, according to a new analysis released Thursday. 

The nonprofit Truth in Accounting, which advocates for more transparency in public finance, released its Financial State of the States report. It concluded that 25 states were unable to cover all their financial obligations at the end of fiscal year 2024, which for most states ended June 30. 

While every state but Vermont mandates a balanced budget, the report says elected officials often exclude certain costs such as future pension obligations and deferred maintenance from their budget calculations.

“This practice essentially shifts these financial responsibilities onto future taxpayers, leaving them to cover the expenses that should have been accounted for in the current budget,” the report states.

In total, Truth in Accounting calculated states hold $2.2 trillion in assets and $2.9 trillion in debts. At $832 billion, unfunded pension obligations are the largest driver of state debts, according to the report. 

Truth in Accounting sorts states based on their ability to cover their debts. The top “sinkhole states” — states lacking the funds to cover their costs — were New Jersey, Connecticut, Illinois, Massachusetts, and California.

Conversely, 25 states touted a surplus of funds relative to their total costs and debts. The top surplus states were North Dakota, Alaska, Wyoming, Utah and Tennessee. 

Rather than funding promises of pension payouts and retiree health care, some elected officials in those states have used those funds to keep taxes low and pay for politically popular programs, the report said. That can make a state budget appear balanced, though its debt continues to increase — the equivalent of charging “a credit card without having the money to pay off the debt.”

The report grades the finances of each state, including a look at its total assets, unfunded liabilities and debts. It also calculates the overall costs to each resident: Kentucky, for example, would need $11,500 from each of its taxpayers to pay all of its outstanding bills, according to the report.

Truth in Accounting lobbies for greater transparency in government and has suggested legislation on the matter. The organization says governments should publish budgets that show the full scope of their debts and future obligations. 

“A representative form of government depends on an informed electorate; however, due to current practices in accounting and budgeting, a state’s true financial health is usually obscured, and citizens are deceived or, at best, misled,” the report said. “Without access to truthful, timely, and transparent information, how can citizens be knowledgeable participants in their governments?”

Stateline reporter Kevin Hardy can be reached at khardy@stateline.org.

After Darren Bush, owner of Rutabaga Paddlesports, had a “widowmaker” heart attack about three years ago that could have killed him, he took a step back and reevaluated his future.

The post Beloved paddling shop to close as owner follows calling to become hospice chaplain appeared first on WPR.

The offices of the Wisconsin Department of Workforce Development, in Madison. The department administers the state unemployment insurance program. (Wisconsin Examiner photo)

A change to unemployment compensation that would penalize people who receive federal disability payments has made it into a draft bill to revise Wisconsin’s unemployment insurance law — despite vocal opposition from Democrats in the state Legislature.

For people who receive Social Security Disability Insurance (SSDI) income, the change would sharply reduce their jobless pay if they lose work. For many, it could wipe out their unemployment compensation entirely, according to Victor Forberger, a veteran unemployment insurance lawyer.

The SSDI provision is part of the agreed-upon draft legislation that was approved Wednesday by the Unemployment Insurance Advisory Council.

The council includes an equal number of management and labor representatives and was established in 1932 to give labor and management an equal voice in shaping the state’s unemployment insurance (UI) program. The council’s members negotiate and draft changes to the state’s UI laws every two years.

On Wednesday Forberger called the council’s 2025 draft bill “a terrible deal for workers.”

Less than a week ago, the Department of Workforce Development (DWD) walked back an earlier proposal to penalize SSDI recipients who apply for jobless pay. The return of a similar provision in the draft bill caught critics by surprise.

“I was pretty shocked when I heard about it this morning,” said state Rep. Christine Sinicki (D-Milwaukee), a vocal critic of the earlier proposal. “I thought it was put to rest.”

The SSDI unemployment pay ban

Since 2013, under a law enacted in then-Gov. Scott Walker’s first term, people who receive SSDI income are automatically disqualified from collecting unemployment insurance — despite the fact that many SSDI recipients hold part-time jobs and would otherwise qualify for jobless pay if they get laid off.

In July 2024 a federal judge ruled that 2013 law violated two federal laws: the Americans with Disabilities Act and the Rehabilitation Act. The ruling came in a lawsuit that a team of lawyers including Forberger filed on behalf of SSDI recipients who were denied unemployment compensation when they were thrown out of work.

This summer, the judge, William Conley, ordered DWD to stop disqualifying unemployment compensation applications simply because an applicant also receives SSDI.

In August, Conley ordered the department to reconsider the applications of people denied UI because of the ban since 2015 and to award them the jobless pay they would have qualified for without the ban. Conley also ordered DWD to repay applicants who had originally received jobless pay, then had it clawed back after the department belatedly found that they were also SSDI recipients.

Also in August, the joint labor-management advisory committee reviewed a dozen proposed changes in state unemployment insurance law requested by DWD.

One of those proposals was to repeal the 2013 state ban on unemployment pay for people on SSDI. The memo noted the court’s ruling invalidating the ban.

But that proposal also called for offsetting an SSDI recipient’s weekly unemployment pay by the weekly value of the SSDI income. The memo acknowledged that the proposal would probably eliminate unemployment compensation for most SSDI recipients who applied.

“In 2024, the average SSDI payment in Wisconsin was $1,500 per month,” the DWD proposal memo stated. “The average weekly SSDI payment for UI purposes is calculated at $346.20 per week. This weekly amount will in many cases fully reduce the UI benefit a SSDI recipient can receive.”

The memo concluded, “In summary, most SSDI claimants will not be able to receive UI benefits. While some may be able to receive UI benefits, it is expected that the weekly UI payment would be small.”

Offset proposal walked back — then returns

The proposal sparked backlash from Forberger and Democratic lawmakers. On Sept. 18, DWD submitted an amended version of the proposal to the advisory council.

The revision removed the offset provision entirely and called for simply repealing the ban on jobless pay for SSDI recipients.

The department noted in its amendment memo that the process of paying past unemployment insurance applicants under the court order had begun, and that those payments were being made without a deduction for SSDI income.

“The Department is amending its proposal to repeal the SSDI disqualification provision and remove the offset provision,” the Sept. 18 memo stated. “This will align with the effect of the court’s order that is now allowing claimants who receive SSDI to be eligible for the full amount of their weekly benefit without a reduction for any SSDI received.”

At the Unemployment Insurance Advisory Council’s meeting on Wednesday morning, the body approved a draft bill for updates to Wisconsin’s UI law on a unanimous vote.

The draft includes a repeal of the SSDI unemployment compensation ban. Despite DWD’s Sept. 18 memo, however, the draft includes language that claws back some of an SSDI recipient’s jobless pay.

“If a monthly social security disability insurance payment is issued to a claimant, the department shall reduce benefits otherwise payable to the claimant for a given week by one-half of the amount [of a] security disability insurance payment that is allocated for that week,” the draft bill states.

While the offset in the draft bill is half what the original DWD proposal called for, Forberger said Wednesday that even the 50% offset would likely mean no unemployment pay for many SSDI recipients.

Sinicki and state Sen. Kristin Dassler-Alfheim (D-Appleton) introduced a bill of their own earlier this month to repeal the ban.

“Receiving SSDI should not prevent working Wisconsinites from receiving unemployment insurance if they’re laid off,” Dassler-Alfheim told the Wisconsin Examiner on Wednesday. “That’s why Rep. Sinicki and I have proposed legislation to remove that ban from state statute, and I’m really hoping that we can see it across the finish line and put this problem to rest once and for all.”

The draft bill is the product of provisions worked out by each caucus — management and labor — in separate closed sessions. The Wisconsin Examiner contacted two senior representatives in the labor caucus of the council for comment Wednesday on the process, but received no response.

“I’m looking forward to finding out how this language got in there,” Sinicki told the Wisconsin Examiner Wednesday afternoon.

“If that language is in there, it is in violation of the Americans with Disabilities Act and you know the courts have already said that. I’ve already said that,” Sinicki said. “And now they’re just going to end up right back in court with this. It makes no sense to me.”

Sinicki has long championed the advisory councils for unemployment insurance as well as for workers comp for negotiating legislation that represents the interests of both labor and management. She’s often chided Republican lawmakers who have authored and passed bills affecting either of those systems without going through the councils.

This time, “I’m struggling with it — I’ll be honest — because it is the agreed-upon bill,” Sinicki said of the unemployment insurance draft. “But first of all, as a Democrat and as somebody who prides herself in the fact that we take care of our most needy, I can’t vote for this.”

Sinicki said the legislation after it’s introduced is subject to being amended like any other bill, and that she would expect an amendment removing the offset proposal.

By tradition, the bill that comes from the advisory council is introduced under the names of the committee chair and the minority party ranking member on the Assembly’s labor committee — which is Sinicki.

Unless the draft is changed, however, “I will not be putting my name on this bill,” she said.

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Mayor Randy Knaack told WPR’s “Wisconsin Today” that he made the decision to draft a letter to Balloonist, LLC, the company pursuing the center, saying the city is not interested in negotiating incentives for the project.

The post Menomonie mayor defends move to halt massive data center project appeared first on WPR.

Modine Manufacturing is expanding in southeast Wisconsin with plans to hire about 300 workers at a new manufacturing facility in Franklin by early next year.

The post Modine Manufacturing to add 300 jobs with new southeast Wisconsin plant in Franklin appeared first on WPR.

Republican state lawmakers are seeking co-sponsors for more than half a dozen bills that they say are aimed at increasing Wisconsin's supply of affordable housing.

The post GOP lawmakers: Newly unveiled bills aim to boost Wisconsin’s affordable housing supply appeared first on WPR.

Wisconsin lawmakers are unveiling proposed tax incentives designed to bring a wood pulp plant to northern Wisconsin. If the project takes off, pulp from that facility would be used to make fuel for planes and other aircraft.

The post Wisconsin officials hope to lure plant that would turn wood pulp into aircraft fuel appeared first on WPR.

Lumber stacked for milling in northern Wisconsin. Lawmakers are proposing state support for a plant that would turn wood debris into aviation fuel. (Wisconsin Examiner photo)

Lawmakers from northern and north-central Wisconsin are circulating a bill supporting Johnson Timber Corp. in Hayward to build a processing plant for aviation fuel made from logging debris to establish a processing plant in Wisconsin.

The legislation would reward the company with a $60 million tax credit and access to $150 million in borrowing through Wisconsin’s bonding authority.

Republican lawmakers wrote in a memo circulated Monday seeking cosponsors that the proposal would create 150 jobs and generate $1.2 billion a year in income after three years of operation.

The processing plant in Hayward would be built by Johnson Timber Corp., in partnership with a German company, Sen. Mary Felzkowski (R-Tomahawk) said at a press conference in the state Capitol Monday morning. The German partner is Synthec Fuels, according to Felzkowski’s office.

Wisconsin along with Michigan and Minnesota are all vying for the project, Felzkowski said, “and the state that helps will be the first state” to get the facility and probably the headquarters for the overall processing operation.

She said the process of converting logging waste into aviation fuel was comparable to how corn is grown for and converted into ethanol.

“We will be taking that wood product and turning it into a carbon offsetting and reduction scheme for international aviation,” Felzkowski said.

As drafted, the bill would authorize the Wisconsin Economic Development Corp. (WEDC) to create a manufacturing zone for aviation biofuel derived from wood matter and to issue up to $60 million in tax credits for a business operating in the zone.

The bill requires the business to source 80% or more of the wood used from Wisconsin and invest at least $1.5 billion in the project.

The bill also provides for the business to borrow up to $150 million for the project using Wisconsin’s tax-free bonding authority.

At the press conference, lawmakers, Sawyer County officials and a timber industry representative billed legislation as a “forestry revitalization” measure.

Paper and pulp plants in Wisconsin Rapids, Park Falls and Duluth, Minnesota, have all gone out of business in the last five years, accounting for about 30% of the pulp produced by Wisconsin’s timber industry, said Henry Sheinebeck, executive director of the Great Lakes Timber Professionals Association.

“We’re growing at a minimum two times more [timber] than we’re harvesting,” Sheinebeck said.  Enabling the timber industry to cut down and make use of more trees would preserve and improve the health of forests in the state, he said.

The association and the paper industry are the joint recipients of an unrelated $1 million grant in the state 2025-27 budget to draw up a statewide forestry industry strategic plan.

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