Newcap, a northeast Wisconsin anti-poverty nonprofit group, abruptly closed its doors for good March 31 amid serious financial challenges, leaving thousands of people wondering what’s next for them.
For more than 50 years, Newcap has operated in 10 counties, including Shawano, Menominee and Oconto. It serves low-income residents and is funded primarily through state and federal grants.
The agency served more than 25,000 people in 2022. Its programs range from employment and job training to educational support, financial coaching, health and food assistance, housing services, home repair and case management.
Newcap had a deficit of more than $2 million in 2024, and a 2025 audit raised doubt about the organization’s ability to continue operating.
According to Newcap’s announcement, the nonprofit tried implementing cost-saving measures, staff reductions and alternative funding options but could not identify a sustainable path forward.
In a statement, Deb Barlament, interim executive director, called the closure “one of the most difficult moments in our organization’s history.”
“Our thoughts are with the individuals and families who depend on these services, as well as with the staff who have dedicated themselves to this mission,” she said. “We pursued every realistic option available to prevent this outcome.”
In Shawano, Newcap provided one of only two homeless shelters in the community. Shawano Area Matthew 25 provided the other.
Kendra Brusewitz, executive director of SAM25, said her shelter is only open from mid-October to mid-May as an overnight emergency shelter. She also said SAM25 has often partnered with Newcap.
“They help service the homeless families in our community year-round, so if we were full we could connect with them and get (people) services over there, or vice versa,” Brusewitz said. “Not having that partnership is a concern.”
Prior to the announcement, the state Department of Administration declined to renew Newcap’s weatherization assistance program contract for the upcoming program year.
On March 13, the DOA informed Newcap that it “could not in good faith” renew the nonprofit’s weatherization contract for the next program year “given the current financial situation at Newcap and outstanding funds the agency must repay,” according to the statement.
The statement does not specify why the agency needs to repay the funds, or the specific dollar amount of that repayment.
The Wisconsin Balance of State Continuum of Care, a nonprofit that coordinates housing and supportive services for individuals and families experiencing homelessness across 69 of Wisconsin’s 72 counties, said Newcap administers four U.S. Department of Housing and Urban Development grants.
Those grants support 134 households across the region. While local service groups want to take over the funding, HUD officials have told the agency they are not processing grant transfers, according to the Balance of State Continuum of Care.
“These families, as of (March 31), are all at risk of going homeless, because the people who would administer the funding for their rent or for their housing doesn’t exist at this moment,” said state Rep. Amaad Rivera-Wagner, D-Green Bay.
More than $2.7 million in federal funding could be permanently lost from the 10 counties Newcap served if the grants can’t be transferred, according to the Balance of State Continuum of Care.
The closure comes as Democrats and Republicans have called for an investigation into Newcap’s use of taxpayer funds after WLUK-TV began airing stories in February alleging the organization may have misused government money.
On March 31, state Sen. Eric Wimberger, R-Gillett, and Rep. Robert Wittke, R-Caledonia, sent a letter to the state Department of Administration asking for records and accountability measures related to Newcap’s funding and operations.
State Rep. David Steffen, R-Howard, also sent a letter March 31 to the Wisconsin Department of Justice. He said he’s concerned about allegations of “waste, fraud and abuse” against Newcap.
Steffen also said the individuals who rely on Newcap’s programs are essentially “victims of this situation.”
Rivera-Wagner said those responsible for Newcap’s financial mismanagement should be held accountable. But he said it’s wrong to punish those who rely on the nonprofit’s services by refusing to transfer federal housing grants.
Newcap’s closure also comes after the organization placed former CEO Cheryl Detrick on administrative leave in February.
She was paid $239,641 in 2024.
Detrick was placed on leave amid reports from WLUK-TV alleging the organization misused taxpayer dollars.
Wisconsin Public Radio and Wisconsin Watch contributed to this report.
