CORRECTION: This story further clarifies legal challenges brought by fair housing organizations. An earlier version inaccurately suggested their case saw a ruling last week, when it was a separate case related to HUD funding. (08-18-2026 10:48 a.m. CST)

The Metropolitan Milwaukee Fair Housing Council warns that a disruption in federal funding for the Fair Housing Initiative Program could have an outsized effect on rural and small communities across Wisconsin.

The council provides services statewide and said rural areas face unique fair housing challenges but often have fewer resources to address them.

Erika Sanders, CEO of the council, said older housing stock in rural areas creates additional challenges for people with disabilities who need accessibility modifications.

“People have the perception that rural communities are all white, and therefore race discrimination doesn’t happen in those communities but that’s absolutely untrue, especially in areas where Hmong refugees have settled, especially where migrant workers have settled,” Sanders pointed out.

The council is awaiting a third year of grant funding from the U.S. Department of Housing and Urban Development, which was supposed to begin in July. Federal grants account for about 40% of the council’s annual revenue.

Sanders noted the delay could undermine the council’s ability to investigate discrimination. Federal officials said recent rule changes aim to improve transparency, accountability and oversight for federally funded grants. Fair housing groups are legally challenging the proposed overhaul. In a separate case last week, a federal judge blocked changes to grants administered by a pair of agencies, including HUD.

The council is the only private fair housing organization in Wisconsin and the only one conducting housing discrimination tests. Sanders underscored government agencies cannot easily replace those services. Yet, Sanders noted the department has also made organizations that recently received enforcement grants ineligible to apply for the next round of funding.

“I and many others in the fair housing movement are left to wonder if this is not an ideologically driven way to diminish private civil rights enforcement and to frankly draw back the power of civil rights law in this country,” Sanders observed.

The council handles about 250 complaints a year but Sanders stressed the number does not tell the whole story, as instances are vastly underreported, especially in tight housing markets like the current one.

Sarah Jenkins, director of education and policy for the council, said it is what makes the work so critical. Jenkins stressed the council is able to reach thousands through outreach and education, including housing providers with limited knowledge of fair housing laws.

“Discrimination can often be incredibly subtle. Someone is told, ‘Sorry, we don’t have anything available,’ but then the for rent sign is still posted the next day,” Jenkins emphasized. “Those kinds of things are perhaps going undetected by housing consumers if they’re not informed and educated about their rights.”

Jenkins added if the team is forced to roll back programs, it means even fewer people are going to be filing complaints due to lack of awareness of their rights.

The Office of Management and Budget said the proposed changes reflect the Trump administration’s commitment to ensuring American tax dollars are ultimately used to serve the needs of the American public.

Judith Ruiz-Branch wrote this story for Wisconsin News Connection, a member of Public News Service.

Judith Ruiz-BranchArticles

HUD funding lags could hit rural WI hardest

Judith Ruiz-BranchArticles

HUD funding lags could hit rural WI hardest