MON AM News: Kaul sues Trump administration over termination of IT modernization grants

October 12, 2026

— Attorney General Josh Kaul is co-leading a multistate lawsuit against the federal government targeting what plaintiffs say was the unlawful termination of IT modernization grants.

The American Rescue Plan Act-funded grants were intended to help states modernize their unemployment insurance systems following a surge in unemployment claims stemming from the COVID-19 pandemic, per a complaint filed late last week in the U.S. Court of Federal Claims.

But the federal Department of Labor ended the program in May 2025, saying it “no longer effectuates” the agency’s priorities.

Wisconsin was awarded $11.25 million and hired a third-party vendor to build a new UI employer portal, per the complaint, but had to halt work on that portal when the DOL pulled funding. The scope of work included measures to prevent unemployment fraud.

Gov. Tony Evers, who wrote several letters to the Trump administration asking for the funding to be restored, said the administration’s action was “unacceptable.”

“The Trump Administration’s decision to obstruct millions of dollars that Wisconsin was promised to continue our efforts defies logic,” he said in a statement. “If the Trump Administration is serious about fighting fraud, they wouldn’t be withholding critical resources that should be helping states like Wisconsin do just that.”

The guv’s office notes Wisconsin’s UI system has been audited nine times over a three-year period since the modernization effort started and has had “zero identified instances of previously undiscovered fraud.”

Before last year’s funding cut, the state had intended to use the dollars to create a new web and mobile employer portal with security features to reduce fraud, while overhauling the communication platform for users and improving cybersecurity measures, according to a release. Other planned uses include setting up identity proofing tools as well as improving claim documentation and automation for case scheduling.

Kaul said the planned efforts represented “effective governance” and slammed the move to cut funding.

“The Trump administration shouldn’t have terminated these grants, and it certainly shouldn’t have done so in clear defiance of congressional intent,” he said in a statement.

Wisconsin had initially gotten funding from six different grant programs before remaining funding was cut for five of them, leading to some projects being cancelled.

The state Department of Workforce Development used an IT modernization grant to hire a company to upgrade its UI system, but its cancellation led to the agency stopping work on the project with nothing to show for it, according to the state Department of Justice.

To implement the project plan now, DWD would have to hire a new company and start from scratch, having spent $8.2 million on the initial scrapped effort, the DOJ says.

— On the latest “Capitol Chats,” U.S. Rep. Mark Pocan, D-Town of Vermont, says voters’ concerns about rising prices, healthcare and utility costs are “intensified” in an agricultural state like Wisconsin.

“In Iowa, Wisconsin, places like that, we’re seeing it, again, just a little stronger because a lot of farmers are hurting even more with diesel fuel, for example, with gas or fertilizer costs,” said Pocan, who serves as regional vice chair of the Democratic Congressional Campaign Committee. “So what’s happening across the nation is happening in Wisconsin, maybe even with a couple extra points, and it looks really good for us right now in both the 1st and 3rd Congressional Districts.”

That’s even with national Republicans holding a significant financial advantage going into the midterms.

Listen to the full episode here.

— Wisconsin’s population has increased nearly 2.9% as of Jan. 1 compared to the 2020 Census, according to final numbers from the state Department of Administration.

Dane County saw the largest increase in the state over that period, both in terms of raw numbers and as a percentage of its 2020 population. The county was at 621,365 residents, up 59,861 compared to six years earlier. That was an increase of 10.7%.

Calumet County grew by 4,801 residents, an increase of 9.15%, while St. Croix County added 7,446 residents, an increase of nearly 8%. Eau Claire County was next on the list with 7,365 more residents, a bump of nearly 7%.

In terms of raw numbers, Waukesha County added 12,768 residents, while Brown County added 11,324.

Milwaukee County, the state’s largest at 945,488, has added 5,999 residents since the 2020 census, an increase of 0.64%.

Eleven counties have seen a population decrease since 2020: Ashland, Price, Langlade, Manitowoc, Richland, Iron, Fond du Lac, Wood, Buffalo, Grant and Menominee.

The city of Milwaukee added 1,330 residents, a growth of 0.23%, to 579,252 as of Jan. 1, while Madison now has 300,153 residents, an increase of 9.3% compared to 2020.

The state’s Demographic Services Center annually produces population estimates for counties and municipalities with preliminary numbers released by Aug. 10 and final numbers by Oct. 10 each year.

— Marshfield Clinic has received a $580,000 federal grant for mental health training and community outreach efforts, with a focus on Wisconsin counties with higher rates of depression, anxiety and other challenges.

The care provider, part of Sanford Health since the merger in 2025, last week announced the three-year Mental Health Awareness Training Grant from the U.S. Department of Health and Human Services.

Marshfield Clinic says it will use the funding to provide mental health training for community members and staff, conduct outreach and awareness efforts at the community level, and develop behavioral health referral pathways to connect people with services. The grant will also help fund a behavioral health navigator position for this purpose.

Meanwhile, “special implementation efforts” will target Barron, Clark, Oneida, Price, Rusk, and Vilas counties, according to the announcement. It notes locals face healthcare shortages, transportation challenges, and a “fragmented” referral system, leading to higher rates of mental health issues, including suicide risk.

Beyond those target counties, Marshfield Clinic says it will improve the community capacity to respond to mental health crises across a 17-county region of northern, central and western Wisconsin.

Jay Shrader, vice president of community impact and social accountability, says mental health “continues to be a significant need in many of the communities we serve,” and the new funding will boost ongoing efforts to address it.

See the release.

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