The river flowing through Wauwatosa's Hart Park overflowing with flood water. (Photo by Isiah Holmes/Wisconsin Examiner)

Wisconsin state lawmakers said a pair of bipartisan bills would help to fill existing gaps in aid after a disaster and get businesses and families back on their feet at a public hearing in the Senate Natural Resources, Veteran and Military Affairs committee Tuesday.

SB 558 would create a grant program under the Wisconsin Department of Military Affairs for people and businesses that are adversely affected by a disaster that is the subject of a state of emergency declared by the governor on or after January 1, 2025. 

A second bill, SB 557, would provide funding for the grant program, including an initial $10 million meant for individuals and another $20 million meant for businesses.

The record-breaking thousand-year storm that hit Wisconsin in August led to flooding and damage across the eastern parts of the state. President Donald Trump approved $29.8 million in federal relief funding in September to provide individual support for flood damage victims in Milwaukee, Washington and Waukesha counties. Other counties that sustained damage, including Door, Grant and Ozaukee, were not included in the federal assistance.

Rep. Dan Knodl (R-Germantown) told the committee that many residents and businesses in those counties were left without a safety net without the federal assistance. 

“It isn’t about creating a new bureaucracy, it is about ensuring that help doesn’t stop at the county line,” Knodl added. “When a disaster strikes, Wisconsin should be able to stand on its own two feet, helping our families and small businesses.”

The bills received a public hearing just days after the Trump administration denied additional disaster assistance aid to repair parks, government buildings and other public infrastructure in Door, Grant, Milwaukee, Ozaukee, Washington and Waukesha counties. 

Knodl said the legislation would ensure that Wisconsin can act “when Washington cannot or will not.” 

The bills are coauthored by Knodl and Sen. Rob Hutton (R-Brookfield) and have bipartisan support from Sens. Jodi Habush Sinykin (D-Whitefish Bay), Steve Nass (R-Whitewater) and Mark Spreitzer (D-Beloit) as well as Reps. Paul Melotik (R-Grafton), Bob Donovan, Travis Tranel, Jim Piwowarczyk, Robyn Vining (D-Wauwatosa), Deb Andraca (D-Whitefish Bay), Tara Johnson (D-Town of Shelby) and Rob Kreibich (R-New Richmond).

Knodl said the bill would be especially helpful in filling the gaps for businesses. 

“Currently, small businesses have no grant options available to them, only loans. Loans can help, but for many small employers already reeling from physical and economic damage, more debt isn’t really a viable solution,” Knodl said. “These businesses are the backbone of our local economies, and when they can’t reopen, it affects not just the owners, but their employees, their customers, and really the entire fabric of the community.”

Susan Quam, executive vice president of the Wisconsin Restaurant Association, told lawmakers that many restaurants sustained large amounts of damage during the floods. She said one of the association’s  members had over $200,000 in losses just from being at the Wisconsin State Fair. She said that didn’t include losses sustained at their brick and mortar location in Wauwatosa.

“Business insurance that will cover natural disasters is becoming increasingly harder and more expensive for all businesses. We know that many of our members who are in historic buildings, especially those with landmark status, are finding it even more difficult to secure decent coverage for these kinds of disasters. As it becomes riskier to be in business, these types of grants can mean the difference between a business recovering or staying closed for good with substantial personal losses for their owners,” Quam said. “It’s imperative that these types of programs exist.” 

Businesses would be eligible for up to $50,000 for eligible disaster-related expenses incurred to  fix or replace damaged property as well as payroll assistance, working capital and business operating expenses. 

Individuals would be eligible for grants of up to $25,000 for the eligible disaster-related expenses to fix or replace personal property damaged by a disaster, home repair conducted by a contractor approved by the federal Department of Housing and Urban Development and temporary housing assistance.

Grant applicants would need to provide the agency with receipts for expenses, apply within 90 days after the governor declares an emergency or within 90 days after the date on which the bill becomes law and sign an affidavit committing to return money to the agency if it is duplicated by insurance money or another source of disaster-related assistance that is not a loan awarded directly by the federal government. The DMA would need to process applications within 14 days. 

The state grants would only be available if the president of the United States has declared a major disaster to exist in this state and federal aid is made available to individuals and businesses.

Knodl said they aren’t looking to appropriate funds on a regular basis, but that funding could be sought in the case of disaster. Under the bill, DMA would have the ability to request supplemental funding from the Legislature’s Joint Finance Committee if the agency determines it needs additional funding.