Gov. Tony Evers and Veterans Affairs Sec. James Bond spoke an event for veterans in the state Capitol on April 22, 2025. (Photo via Wisconsin Department of Veterans Affairs Facebook page)

Two Wisconsin Department of Veterans Affairs programs that provide support to struggling veterans, including those experiencing homelessness, are on track to close locations and shrink in size due to a lack of funding in the new state budget.

The state budget was passed by the Legislature and signed into law by Gov. Tony Evers in early July following months of negotiations. While Evers and lawmakers hailed the agreement as a bipartisan accomplishment, they are now blaming each other for the anticipated closure of two facilities, one in Chippewa Falls and one in Green Bay, that serve veterans struggling with homelessness this year due to insufficient funding available. Another program that provides support for veterans dealing with mental health and substance use issues will also face cuts due to the budget.

The Veterans Housing and Recovery Program (VHRP), which currently has three physical sites, serves veterans who are on the verge of or experiencing homelessness, including those who have experienced incarceration, unemployment or underemployment, physical and mental health problems. The program lasts a maximum of 24 months, but the average length of stay is six to 10 months.

The VHRP locations in Chippewa Falls, which has 48 beds, and Green Bay, which has 17, will close by September 30 of this year. The Union Grove location, which has a capacity of 40 beds, will remain open.

“We make a promise to our veterans that when they return home to their civilian life, we will support and serve them just as they have supported and served us. Our veterans should not have to worry about being able to afford to keep a roof over their heads. Period,” Evers said in a statement Monday. 

Randy Nelson, 63, has resided at Klein Hall in Chippewa Falls for about three months. He told the Wisconsin Examiner in a phone interview that it has been the “perfect place for me to come and figure some things out,” especially since his daughter lives nearby. Before he moved in, he had been experiencing homelessness and navigating substance use issues.

Nelson served in the military for three years starting in 1979 and spent much of his time working on aircraft repairs. He said he has been lucky to receive some of the veterans’ services that he has. 

Nelson said the VHRP program has given him an array of resources, including access to recovery and anger management programming, and it has also been a safe place for him to look for housing. 

“I just lucked out in getting a housing voucher this quick, otherwise I’d have no place to go,” Nelson said.

Nelson said he is confident in his sobriety now and “more hopeful about my remaining years,” but is “truly worried” about his fellow veterans, given the recent news. He said some residents are considering leaving the state to try to find a new place with similar services, even though they want to remain in the area. 

“They’re scared of getting kicked out and being homeless,” Nelson said. He said residents are still considered homeless to some degree, since they lack a permanent address, but the closure could mean some would “actually be out on the streets again.”

“There’s people that are working and saving up money here, and they don’t know what to do because they’re not making enough money to get into a place yet,” Nelson said.

The Legislature, Nelson said, is “taking away valuable resources for veterans” with the cuts to the program. 

The program was created by Wisconsin lawmakers in the 1993-95 state budget and was initially supported from Wisconsin’s veterans trust fund. It was expanded in the following years and is currently funded from a combination of trust fund payments, payments made by program participants and per diem payments, which are made to the agency by the federal government at a current rate of about $71 per resident per day. Participants can be charged up to 30% of their monthly income in rent when using transitional housing. 

Growing staffing and maintenance costs at the facilities led to Evers and the agency requesting nearly $2 million in additional state funding during the budget process, but it wasn’t included in the final bill. 

“The bottom line is that there will now be fewer options for homeless veterans as a result of the Legislature’s irresponsible decision to reject the investments,” Evers said, adding that he would be urging the Legislature to provide additional support for veterans in the fall.

Democratic lawmakers, including Sens. Jeff Smith (D-Brunswick), Jamie Wall (D-Green Bay) and Reps. Jodi Emerson, Ryan Spaude, Christian Phelps, Christine Sinicki, Brienne Brown, Amaad Rivera-Wagner, Maureen McCarville and Angelito Tenori, quickly introduced legislation Wednesday that would provide the necessary funding.

“Republicans withheld critical funds for over a year while our region struggled with hospital closures. Now homeless veterans are the victims of the Republicans’ callous inaction,” Smith said in a statement. “These men and women served our country. We have a moral obligation to ensure they have a roof over their heads.”

Emerson called the closures “extremely alarming” in a statement, noting that the facilities  are scheduled to close just as the weather in Wisconsin turns cold.   

The co-chairs of the Joint Finance Committee Rep. Mark Born and Sen. Howard Marklein pushed back on Evers in a statement, saying his comments were “simply disingenuous.”

“The Legislature made significant investments to support veterans in our state including in this program,” the lawmakers said, noting the budget included $5 million to support Wisconsin veterans homes, $2.5 million to support the Veterans Community Project which provides housing and support services for veterans and a slight increase in the Veterans Housing and Recovery Program.

“Legislative leaders negotiated for weeks with Governor Evers and he did not bring this topic up once,” Born and Marklein said. “Evers is looking for a scapegoat to blame for his administration’s failure to adequately manage the changes to the program volume and demands.”

WDVA Assistant Deputy Secretary Joey Hoey told the Wisconsin Examiner, however, that it is “disingenuous” to blame Evers when lawmakers made the decision to exclude the funding from the budget.

“They can try and paint it however they want,” Hoey said. “If they wanted to fund it, they could have put it in the budget.”

The agency worked with lawmakers on the Joint Finance Committee during the budget cycle, agreeing to eliminate over 200 positions that were unfilled. Rep. Mark Born (R-Beaver Dam) thanked the head of the agency for working with them during the committee’s June 12 meeting. 

Hoey said the agency had hoped the budget would reflect that collaboration and would include funding for the Veterans Housing and Recovery program (VHRP) or the Veterans Outreach and Recovery program (VORP). Ultimately, it did not.

The VHRP program’s base funding was about $2.1 million, including $1.3 million in federal funding, $677,500 from the veterans trust fund and $115,500 from rent payments.

The Legislative Fiscal Bureau (LFB) laid out the stakes for the program in a memo to lawmakers as they were writing the state budget. 

“Without additional funding, the Department would not have sufficient resources to maintain the program’s three sites,” the memo stated. 

One of the funding issues outlined by LFB was the rising cost of staffing. According to the memo, about two-thirds of VHRP costs went towards Lutheran Social Services, the organization providing management and supportive services at each location. Lutheran Social Services has incurred higher staffing costs in recent years. Evers dedicated $500,000 in ARPA funds to those increased costs in 2023-24, but that funding has run out.

The facilities were also proving a problem, Hoey said. Evers had requested $24 million in his capital budget to build new facilities in Green Bay and Chippewa Falls, but lawmakers declined to fund them.

“The physical upkeep was also above what we had calculated or budgeted,” Hoey said, noting that the Chippewa Falls building had roof leaks and the HVAC system was old. “We were paying people to repair it and Band-Aid it. In Green Bay, we had problems, and every time you have a problem and you can’t have a resident in a room… you’re not getting that $73 per day from the federal government. It’s a double whammy, and that’s why we thought new facilities would fix that for Green Bay and Chippewa Falls.” 

Evers had proposed providing $1.95 million across the biennium for the program.

Lawmakers provided an adjustment to the program of $100,000, which they are touting as a 15% increase. Hoey said in an email, however, that the funding is an adjustment that reflects what the agency has already been spending and still falls “well short” of the funding the LFB identified as necessary to keep the sites open.

Hoey also noted another program administered by the WDVA will face cuts under the new state budget.

The Veterans Outreach and Recovery Program (VORP), which serves veterans dealing with mental health and substance use issues and aims to reduce the suicide rate among veterans, is set to lose seven employees. Evers had asked for seven positions and more than $1.1 million to help support the program. 

The program launched in 2015 with the help of a federal mental health grant, and has since become state funded. ARPA funds were used in 2023 to expand the reach of the program, but with those funds running out the agency sought state funds to continue its current size. The positions expire in October 2025.

“We had expanded to 16 regions where there was somebody who was living in that part of the state, and now we’re having to go back to 11 regions,” Hoey said. “They wouldn’t fund that.”

Those positions had helped the agency reach more veterans, provide support in a more timely manner and give veterans more time, according to the Legislative Fiscal Bureau. The program provided services to 2,222 people in 2023-24 — nearly 70% more contacts than in 2021-22 when the program served 1,329 people. 

“It was really very disappointing, because these are two programs that have incredible track records of really helping veterans who need it,” Hoey said. “It was really disappointing being in Joint Finance when that vote came up. My heart was breaking, sitting there thinking ‘Oh, my God, all these people who won’t get served.’” 

Hoey shared an anecdote of a former program participant who recently returned to the Chippewa Falls site to give people an update on where he was, to illustrate the effectiveness of the programs. The VHRP, Hoey explained, is a monthslong process to help struggling veterans get to “the point where they can return to society in a stable, functioning way.” 

“He came in and wanted to tell everyone that, you know, five years ago, he was homeless, and now he’s married with a kid, and he had just bought his first house and was so proud because he had paid his first property tax bill,” Hoey said. “That’s the kind of result these programs have… Between the two programs you’re looking for $4 million and we couldn’t find that.” 

Wisconsin DVA Secretary James Bond said in a statement that the agency remains committed to assisting veterans. 

“We have a duty to support veterans, especially in their darkest times,” Bond said. “VHRP has been integral in helping veterans find stability and succeed in their communities, and along with our partners on the ground, we intend to still carry out that mission to the best of our ability.”

Veterans who are currently residing at the two facilities will be offered alternative placement options and will continue to receive assistance through supportive services.

Hoey said even as the Department of Veterans Affairs continues its work, the cuts and closures will likely mean fewer veterans will be served and it could be more difficult to reach veterans across the state. He said wait times could also become more of an obstacle for veterans seeking services. 

“Most of these veterans, they want to go to a program that’s somewhat near their community so they can count on whatever support systems they have, so… it’s unlikely we’ll be able to serve as many veterans in the majority of the state, since the home that’s existing is near Milwaukee.” 

Hoey said the agency decided to retain the Union Grove site, located just south of Milwaukee, because upgrades and repairs that were funded with state and federal funds were recently completed.

“The VORP team, instead of referring someone to Chippewa Falls, now they have to refer them to a program in Minneapolis, so we’re going to still try and get people the help they need,” Hoey said. “It’s just going to be harder.”

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Senate Majority Leader Devin LeMahieu (R-Oostburg) said his caucus has “no trust” in Evers and his office and said that is the result of vetoes in the past on bills. (Photo by Baylor Spears/Wisconsin Examiner)

Friction between Democrats and Republicans was on display Wednesday as the Senate passed several bills along party lines that create programs, grants and facilities without state funding attached. 

Republicans argued the bills need to be signed before funding is included in the budget to assure them there won’t be any changes made by Gov. Tony Evers using his partial veto, and Democrats said the funding needed to be included to assure them the bills don’t become unfunded mandates.

The first bill — SB 41 — would instruct the Office of School Safety in the Department of Justice to establish a program that allows public and private schools to apply for grants to improve safety in school buildings and provide security training to school staff. The program would sunset in July 2027 under the GOP bill.

The bill initially had $30 million in funding attached, but Republican lawmakers passed an amendment that removed the funding.

Senate Majority Leader Devin LeMahieu (R-Oostburg) said, while the Senate debated the bill, that his caucus has “no trust” in Evers and his office and said that is the result of vetoes in the past on bills. 

LeMahieu noted three vetoes from last session as example: the veto in the state budget that extended revenue limit increases for schools for 400 years, one on a bill funding a new literacy program and another on a bill meant to help combat PFAS. 

“It is our commitment to you that we are hoping these bills get bipartisan support — they’re bills that are important for Wisconsin,” LeMahieu said. “And if they get through both the houses and the governor signs them. We intend to fund this through the budget process.”  

LeMahieu said that otherwise lawmakers would be funding a program without knowing what it will look like.

“Frankly, there is a trust issue between our caucus and Evers,” LeMahieu said. 

Evers’ spokesperson Britt Cudaback said in a statement to the Examiner after the floor session that the GOP-led Legislature has “spent years undermining our constitutional checks and balances by giving themselves outsized influence and control over the policymaking process.” 

“It’s ‘my way or the highway’ for Republicans, who’d rather go as far as passing a Frankenstein budget in pieces than try to work together to get good things done for the people of our state,” Cudaback said. “If Republican lawmakers spent more time working across the aisle in good faith than they do trying to exhaust every avenue to preserve their political power while they still have it, Wisconsinites would be better off.”

Jeff Smith (D-Brunswick) said during floor debate that Democrats cannot trust the funding will actually come if the bills are done in that way.

“We’re supposed to trust that bills are going to get passed with no funding because they are going to get funded later,” Smith said, adding that “when there is no funding behind the bill it’s hollow. It means nothing.”

Smith authored an amendment that would have put the funding back. Sen. Jesse James (R-Thorp) — the author of the bill — voted in favor of every amendment to the bill, including the ones authored by Democrats to provide the funding and in favor of the amendment that he authored that removed the funding from the bill. He made similar votes on other bills that he authored. 

Sen. Mark Spreitzer (D-Beloit) said he has asked Republican lawmakers, including those on the budget committee, about funding for several proposals, but has never gotten a clear answer on funding. 

“Come back and talk to us when you’ve decided. Is it $ 5 [million]? Is it 10 [million]? Is it nothing? Are we actually doing this? If you were bringing this up later with the budget, if we actually had a budget, if we weren’t just waiting for you all to decide whether you’re going to cut the UW budget, if we had a budget in front of us… maybe we could talk,” Spreitzer said. “We have absolutely no idea what you’re doing on the budget. We have no idea if you actually have 17 votes on a budget.” 

With the budget still in process, Sen. Chris Kapenga (R-Delafield) and Sen. Steve Nass (R-Whitewater) have expressed reluctance to support  the budget proposal as approved so far by the Joint Finance Committee. This could leave Senate Republicans — who hold an 18-15 majority — without much wiggle room to pass a budget.

That could give Democrats more leverage. Hesselbein said she is hopeful she can work with Republicans to pass a budget that invests in priorities including public education, higher ed and child care.

“It certainly seems that Sen. Kapenga has been very clear,” Hesselbein said. As for whether Democrats will vote for it, she said, they will “have to see what that budget looks like” but her “door remains open to have those conversations.”

The Senate floor session came after Evers had been urging lawmakers to make sure their bills include funding. 

Evers’ legislative affairs director Zach Madden sent letters to Republican authors of bills last week, which Democrats read during the floor session, expressing Evers’ concern about the lack of funding attached. His office identified 16 bills needing funding.

“While the Governor is supportive of the policy concept the bill aims to accomplish, the bill does not include the necessary funding to implement the bill. Without providing the necessary funding, the legislation is effectively nothing more than an empty promise,” Madden wrote. 

Madden wrote that Evers is requesting the bill be amended to include the funding, the bill be incorporated into the budget bill or that language be added to the bills to “make clear the requirement of the bill is only mandated after adequate funding is appropriated in subsequent legislation specifically for the purpose of the bill.” 

“The Legislature has increasingly tried to pass legislation to create new and unfunded mandates, add additional requirements or policies that require resources to implement, and tie up hundreds of millions of dollars in critical investments in a trust fund or the JFC supplemental fund that never leave Madison to serve the purposes for which they were intended,” Madden wrote. “Due to the Legislature’s inaction, districts still haven’t seen one cent of that funding even as the various policy requirements went into effect.” 

Madden said that lawmakers splitting the bills in the budget from their funding is  “unsustainable and untenable,” and is interfering with the Evers’ ability to exercise his partial veto power. He said the change needs to be made if the bills are going to be signed into law. 

“It is clear the overarching goal of these practices is designed to prevent the Governor from exercising his constitutional veto authority, and it is further apparent the Legislature is now attempting to use this practice to effectively try to pass a biennial budget in pieces.” 

Wanggaard called the letters “intimidating” and “threatening” at one point. 

“That was the intimidating letter that was sent,” Spreitzer said, after reading one of them. “If that was intimidating, then you must not have worked in politics long.” 

The debate became heated with Spreitzer at one point standing up and asking for his name to be removed as an author from one of the bills he had co-sponsored, saying it was an “unfunded mandate.” 

Youth corrections bills

Several of the bills the Senate voted on came out of a study committee held over the summer of 2024 charged with considering legislative solutions to issues with the emergency detention of minors.

One bill — SB 106 — would establish psychiatric residential treatment facilities (PRTF) in Wisconsin. The facilities are meant to offer long-term treatment for children diagnosed with psychiatric conditions, including bipolar disorder, disruptive behavior disorders, substance use disorders, severe emotional disturbance or post-traumatic stress disorder. Lawmakers want to establish the facilities to help prevent minors from being sent out of state when they’re in crisis. 

“We’re willing to vote for this if it’s real, if it has funding,” Smith said. One of the Democrats’ proposed amendments to the bill would have provided DHS with nearly $1.8 million in 2025-26 and 2026-27 for the administration and funding of PRTFs. 

Sen. Eric Wimberger called Democrats’ amendments a “stunt” and said the Wisconsin Supreme Court had changed the rules for how Wisconsin does the budget. 

“If we were to put an appropriation in the bill, he could line-item the whole thing and just take the money,” Wimberger said. “We’re going to maintain the authority of our branch.”  

Wanggaard said that if Evers vetoes the bill it is on him and not on the Legislature. 

Other bills passed by the Senate that Democrats said needed money attached included:

• SB 108, which requires the Department of Health Services (DHS) to develop an online portal that would facilitate sharing of safety plans for a minor in crisis with specific people. Democrats had requested $1 million in funding to be attached.

• SB 111, which establishes that counties are responsible for the transportation of a minor to emergency detention if they approve detention for a minor. Democrats wanted to include open-ended funding, while an amendment was made to provide a specific amount of funding. 
• SB 182, co-authored by Sen. Howard Marklein (R-Spring Green) instructs the Technical College Board to provide grants to technical colleges that provide emergency medical services courses that train and prepare people for their initial certification or licensure as an emergency medical responder or services practitioner. The bill also instructs the Higher Educational Aids Board to reimburse students or their employers for tuition and materials necessary for someone to qualify for the initial certification or licensure as an emergency medical responder or an emergency medical services practitioner.
• SB 283, which requires the Department of Transportation to establish and administer a public protective services hearing protection program. 

Assembly talk about education, child care plans

Assembly Minority Leader Greta Neubauer (D-Racine) said on Wednesday morning ahead of the Assembly floor session that the proposals from Republican lawmakers aren’t adequate.

“Our public schools are in crisis. Our communities are being forced to go to referendum year after year, our child care industry needs direct investment to keep it afloat, and our universities need essential dollars to provide the best services for our students,” Neubauer said. She added that Republican lawmakers declined to raise special education funding in schools to 60% and are preparing cuts to the University of Wisconsin system.

Assembly Speaker Robin Vos said his caucus supports cutting $87 million from  the UW system, but wouldn’t say if that’s the final proposal the budget committee will take up. The system has said it needs additional funding and Evers had requested $855 million in his proposal for it. Vos says Republicans want “reform” of the UW for the “broken process that we currently have.” 

“That would have serious consequences for economies across Wisconsin and the future of our state. A cut like that could mean closed campuses — the Platteville, River Falls or Stevens Point Marathon County — at risk,” Neubauer said. “Cuts like that would have consequences for thousands of students, staff, and faculty, and is just unacceptable.” 

Neubauer said that lawmakers need to work with Evers and Democrats to pass a budget that will “ensure the continuity of essential services” in Wisconsin.

“There is still too much political correctness on campus,” Vos said. “We don’t have enough respect for political diversity — heaven forbid, if you’re a student who’s Jewish or has a different viewpoint on campus, where you feel like you’re either targeted or the victim of potential hate.” 

During the last legislative session, Republican leaders leveraged pay raises and funding for building projects to get the UW system to concede on diversity, equity and inclusion. 

Assembly Republicans also announced their plans to address the child care crisis in Wisconsin — again rejecting Democrats’ calls for funding Child Care Counts, which faces a quickly approaching deadline for when funding runs out. Evers had requested a $480 million child care measure and some providers have argued it’s necessary to help keep child care businesses open. 

The outline announced Wednesday includes allowing 16-and 17-year-olds to staff child care facilities as assistants and to count towards staff to child ratios, increasing the number of children that a family provider can have from 8 to 12 and creating a zero-interest loan for child care providers and a 15% tax credit for the business expenses at a child care facility.

Vos said Democrats’ approach to the child care issue wouldn’t be effective. He said Republicans’ plan was “comprehensive” and a “good idea.”

“The plan that they have basically put out is saying that the way we drive down the price of groceries is to pay the owner of the grocery store more, hoping that it will trickle down to cost carrots and eggs less,” Vos said. “What we prefer to do is to give the money to the consumer to the parents to actually make those decisions.” 

Shawn Phetteplace, national campaign director for Main Street Alliance, told the Examiner that the proposal is a sign that Republicans are “deeply unserious” about working to improve the child care crisis. 

“If you look at what the actual crisis is in child care, it is the fact that parents can’t afford it, and that providers do not make enough to be able to make a living and stay and enter the industry. We believe at Main Street Alliance that the solution to this is to invest in the Child Care Counts program and not to do budget gimmicks that have been proven to be failures over the years.” 

Phetteplace said that Vos’ grocery comparison was “oddly” appropriate given that the U.S. already subsidizes farmers. 

“We provide generous subsidies to allow them to have consistent, predictable markets for their goods,” Phetteplace said. “What we’re asking for is to make sure that the child care providers are making enough, and the parents can afford it to ensure that we have a market and child care that works for Wisconsin families. The proposal today by the Speaker and Assembly Republicans is simply an effort to deflect this issue and to make it less politically salient. We believe that is not the right approach, and we urge them to get serious and to negotiate with [Evers].” 

The Joint Finance Committee is scheduled to meet to continue its work on the budget Thursday.

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