Bipartisan Wisconsin Bill Would Create New State Disaster Aid Program
$30 million grant program to offer aid for those not covered by federal disaster assistance.
Debris picked up as part of the city’s post-flood bulky item pickup. Photo by Jeramey Jannene.
Wisconsin homeowners and businesses hit by flooding and other natural disasters would have a new avenue to help rebuild under bipartisan legislation moving through the state Capitol.
The proposals would create a $30 million grant program offering aid for those not covered by federal disaster assistance.
They’re a direct response to flooding that hit southeastern Wisconsin in August after storms dropped up to a foot of rain in some places.
The legislative package directs the state Department of Military Affairs to create a grant program for individuals and businesses impacted by disasters in which the governor declares a state of emergency. It would set aside $10 million for grants to individuals and another $20 million for businesses through 2026.
Because the bill retroactively applies to declarations after January 1, 2025, individuals and businesses hit by August’s floods could qualify. Grants for individuals would max out at $25,000 for qualified property repairs. Businesses could get up to $50,000.
During a Tuesday public hearing before the Senate Committee on Natural Resources, Veteran and Military Affairs, State Rep. Dan Knodl, R-Germantown, said the goal is to address “a void that needs to be filled” for homeowners and businesses when Federal Emergency Management Agency disaster aid is denied. He also pointed out the goal “isn’t about creating a new bureaucracy.”
“It’s about ensuring that help doesn’t stop at the county line when a disaster strikes,” Knodl said. “Wisconsin should be able to stand on its own two feet helping our families and small businesses rebuild stronger and faster.”
In September, FEMA approved $29.8 million in federal aid for individuals impacted by flooding in Milwaukee, Washington and Waukesha counties. Knodl said despite Gov. Tony Evers’ request, other counties like Door, Grant and Ozaukee counties didn’t receive any FEMA aid.
Lawmakers on the committee were generally supportive of the idea, though there were questions about what happens if a person or business gets a state grant and later qualifies for federal assistance. Knodl said if that were to happen, the legislation requires the state money to be paid back.
David Krueger, who owns Krueger’s Bowling, Food and Arcade Center in Menomonee Falls, testified in favor of the grant program proposal. He told the committee his bowling alley was hit by five feet of floodwater, which ripped an attached freezer room from the building and damaged everything from arcade games to the building’s new boiler. Krueger said he’d just bought the building two years before.
“There was no mention of a floodplain,” Krueger said. “Why would you have flood insurance? We don’t have flood insurance. The majority don’t. So the cost could easily go … you start out at probably a half a million.”
Knodl, who testified with Krueger, said no FEMA programs cover for-profit businesses like the bowling alley.
Wisconsin Restaurant Association Executive Vice President Susan Quam also spoke in favor of the legislative package. She said her members operate with low profit margins, which leaves “very little for operators to withstand natural disasters that create damages they were not able to prevent or even prepare for.” She said the proposed state grants could mean the difference between a restaurant staying open or closing forever.
Quam said it’s becoming increasingly difficult for restaurant owners to get affordable business insurance.
“It’s the fact that the insurance companies won’t cover for these kinds of events anymore, and especially if you’re in an older building, an historic building, or anything else that brings a lot of character to the municipality or the area that you’re in,” Quam said. “It is very, very difficult for insurance to cover this.”
The state disaster grant proposal was introduced Oct. 22 and would need to pass both the Assembly and Senate before it could be signed into law. But Knodl said he’s confident it will garner significant bipartisan support. Already, its cosponsors include Sens. Jodi Habush Sinykin, D-Whitefish Bay, Steve Nass, R-Whitewater, and Mark Spreitzer, D-Beloit.
Wisconsin would create new state disaster aid program under bipartisan legislation was originally published by Wisconsin Public Radio.
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