MON AM News: WPF report explores changes to federal housing tax credits, other policies; Barnes says PSC should put the public over profit

March 23, 2026

— Recent federal changes have expanded housing tax credit programs that drive low-income rental developments in Milwaukee, but rising costs are holding back affordable housing growth in Wisconsin’s largest city.

That’s one conclusion from the Wisconsin Policy Forum’s latest report, which explores the impact of shifting federal housing policy on Milwaukee County.

Authors note the One Big Beautiful Bill Act “significantly expanded” federal housing tax credit programs, providing more support for affordable housing production at a time when county residents are facing major housing cost challenges.

But the changes to the Low-Income Housing Tax Credit programs “do not guarantee a major increase” in affordable housing in the Milwaukee area, according to the Forum. That’s because related costs are rising and the fact that tax credits rarely cover the full cost of the project.

“Rising construction and operating costs, growing reliance on additional gap funding, and the erosion of other federal housing resources raise questions about the extent to which these changes will ultimately support development of more units,” authors wrote.

These federal tax credits, which can be claimed over a 10-year period, are awarded by state housing agencies to developers, who usually sell them to private investors for upfront equity, according to the report. That reduces the amount of debt needed to finance projects and allows for lower rents.

Property owners in return must reserve a minimum of 20% of units for households that earn less than 50% of the county median income — or 40% for households below 60% of the median — for 30 years, the report shows.

The Wisconsin Housing and Economic Development Authority administers both the federal 9% and 4% housing tax credit programs in the state. Since 2016, about $262 million in these tax credits have been awarded in Wisconsin.

About half of WHEDA’s available tax credits are set aside for projects located anywhere in the state, and developers applying for credits in Milwaukee County are typically competing within this pool. The rest of the tax credits go to projects in rural and small urban areas.

In addition to the rising cost constraints, future production of affordable housing in Milwaukee County depends greatly on how the state’s expanded resources are divided up, authors note. The report details how this support has varied year by year, ranging from 43.4% of tax credits going to housing projects in Milwaukee County in 2021, to just 6.3% in 2025.

“While the federal changes create real opportunities to finance more affordable housing, the actual number of units built will depend on state allocation decisions and broader economic and market conditions,” authors wrote.

The report was commissioned by the Community Development Alliance, which aims to achieve “racial equity in housing” through various initiatives.

See the full report.

— On the latest WisPolitics’ “Capitol Chats” podcast, Dem Mandela Barnes says the Public Service Commission should act in the public interest rather than prioritizing profit for utility companies.

Barnes is one of 10 candidates in the Democratic primary to succeed Gov. Tony Evers. A former state lawmaker, he served alongside Evers as lieutenant governor during the Dem guv’s first term and narrowly lost a Senate bid against U.S. Sen. Ron Johnson, R-Oshkosh, in 2022.

Barnes recently unveiled a proposal to crack down on rising utility rates, including a vow to only appoint PSC members who promise to freeze them. State law requires the PSC to approve rates that allow utilities to cover reasonable costs and give them the opportunity to turn a profit.

“I’ll tell you, being able to reasonably turn a profit doesn’t include significant, huge executive bonuses at a time where people are struggling to keep the lights on. Acting reasonably doesn’t include spending millions of dollars on lobbying and other political expenses,” Barnes said.

He noted the PSC approved a two-year utility rate freeze in 2017. That freeze applied to We Energies’ and Wisconsin Public Service’s electric and natural gas rates and was part of a settlement agreement.

Listen to the full episode here.

— Native American Tribes in Wisconsin are getting about $1.8 million in federal grant funding for road work aimed at reducing traffic deaths and injuries.

U.S. Department of Transportation Secretary and former Wisconsin lawmaker Sean Duffy recently announced more than $21 million in grant awards going to 84 projects for 61 tribal groups across 13 states. Funding comes from the Federal Highway Administration’s Tribal Transportation Program Safety Fund.

In Wisconsin, the Forest County Potawatomi Community is getting the majority of the funding spread across three different grants. A $711,000 grant will fund the Education Trail Safety Project, another $421,000 grant will fund an effort to collect and analyze road safety data, and a $192,000 grant is funding a safety project focused on County Highway S.

Meanwhile, the Ho-Chunk Nation of Wisconsin is getting $218,000 for the design phase of a road intersection reconstruction project.

The Red Cliff Band of Lake Superior Chippewa Indians is getting $224,000 for a pedestrian pathways design project.

And the St. Croix Chippewa Indians are getting $10,000 to update a transportation safety plan.

See the full list of awards.

— The state chapter of the National Federation of Independent Business is calling a recent proposal to create government-run grocery stores “dangerous.”

The legislation is being circulated for co-sponsorship by the Legislative Socialist Caucus, though it doesn’t have a path forward this session following both the Assembly and Senate recently adjourning.

The Dem lawmakers who sent the memo last week argue “private incentives are clearly insufficient” to feed everyone in their communities and create a sustainable food system that supports farmers.

In response, NFIB Wisconsin on Friday issued a statement expressing “deep opposition and concern” about the bill circulating in the state Assembly, noting it would be funded with $100 million in taxpayer money.

“Government running businesses to compete with the private sector is not only a terrible idea but is also a dangerous threat [to] free market capitalism,” NFIB State Director Luke Bacher said, adding “free markets and small businesses have fed Wisconsin better than any government ever could.”

The co-sponsorship memo was sent last week by Reps. Darrin Madison, D-Milwaukee, Francesca Hong, D-Madison, Ryan Clancy, D-Milwaukee, and Christian Phelps, D-Eau Claire.

See the full statement from NFIB Wisconsin.

— In the latest GOP radio address, Sen. Dan Feyen touts the passage of Republican bills that remove taxes on tips and overtime.

“In Wisconsin, we believe in rewarding hard work, not punishing hardworking Wisconsinites by taxing them more,” the Fond du Lac Republican says. “That’s why Senate Republicans have passed several bills this session that put money back where it belongs: in the pockets of the people who earned it.”

Feyen says earlier this year, Senate Republicans passed legislation eliminating state income tax on tips, mirroring federal legislation signed by President Donald Trump. He says this past week, they passed “no tax on overtime pay” legislation, which exempts Wisconsinites’ first $12,500 of overtime pay from taxes.

“These are common sense reforms that keep our government smaller and smarter,” Feyen says. “At a time when many families are feeling the pressure of higher costs, passing ‘No Tax on Tips’ and ‘No Tax on Overtime’ makes sure that you keep more of your hard-earned money.”

Top headlines from the Health Care Report…

— Marquette University’s School of Dentistry has received a $2 million alumni donation from a 1969 graduate who went on to be an oral surgeon in Green Bay.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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