GREEN BAY (NBC 26) — Wisconsin State Rep. David Steffen (R) on Tuesday urged the attorney general to investigate a northeast Wisconsin charity for possible fraudulent activities, just hours after the group announced it would close its doors.
Newcap officials said the nonprofit, which provided support to individuals and families in 10 counties, was closing because of "significant and ongoing financial challenges."
Interim executive director Deb Barlament said in a news release the decision came despite cost-saving measures, staff reductions, and attempts to secure alternative funding and partnerships.
“This is one of the most difficult moments in our organization’s history,” Barlament said in a statement. “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.”
In a letter to Attorney General Josh Kaul, Rep. Steffen noted that Newcap's closure came after the state had placed the group on enhanced financial monitoring. He also cited "findings of mismanagement and extensive whistleblower allegations of fraud and corruption."
"I urge the Department of Justice to launch a full investigation into Newcap to uncover any instances of fraudulent activity," Steffen wrote in a letter to attorney general Josh Kaul.
A 2024 audit of Newcap by Milwaukee-based firm Bakertilly found the non-profit was operating with more than a $2 million defecit.
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Newcap's closure, while expected sometime this year, came months earlier than some predicted.
"We weren't expecting Newcap to close unexpectedly today, but we were operating under an understanding that maybe they were going to be closing on June 30," Josh Benti, project director for the Greater Green Bay Blueprint to Prevent and End Homelessness, said. "Yeah, that pushes our time frame up a little bit, but it isn't something that is unrealistic for our community to be able to respond to if we're collaborating together."
Nicole Finley, a client with Newcap, was also surprised by the organization's closure. She said her case workers told her to come by the office on Tuesday– the same day Newcap closed its doors– to finish up her housing paperwork.
"This was literally the last step I needed to be a productive member of society and not be considered homeless," she said. "I tried to call, no answer. So I said, screw it, I'm just going to go off, get the paperwork and show up, and hopefully someone is there to take it, but they're completely closed."
Finley said she's unsure what to do next, after spending the past couple months working with Newcap to get into housing. She's been homeless since COVID.
"I'm frustrated, I'm irritated, I'm pissed off," she said. "You gave false hope to somebody who was struggling. It's not fair to me, and it's not fair to the community."
Benti said the Brown County Housing Coalition, along with other housing advocacy groups, are ready to fill in the gaps left by Newcap. He said they're working to ensure any U.S Housing and Urban Development money stays in the community and with the families dependent on it.
He said any Newcap clients or landlords should reach out to the Housing Coalition for next steps.
“We can come together to support individuals that might be impacted by Newcap closing their doors, but also other individuals in our community that are already struggling with housing insecurity," he said. "We're bigger than one organization in our community, so this is a time for our community to come together and show that."
The Brown County Homeless and Housing Coalition is hosting a free State of Homelessness Summit on April 8, 2026 at the HJ Martin Training Center in Green Bay.
Newcap was started in Marinette in 1965, but since then has spread to 10 counties across Wiscosin. They've been in Brown County since 2017.
A 2022 annual report shows Newcap serves more than 25,000 individuals each year.
