02-04-2025
SDC could lose millions in federal funding. What to know about its upcoming hearing
Just months after reopening, the Social Development Commission is at risk of losing its status as a community action agency, putting millions in federal funding on the line.
The Wisconsin Department of Children and Families will decide whether to terminate the anti-poverty agency's status after a public hearing this week.
Here's what to know.
The hearing is on Friday, April 4, from 11:30 a.m. to 1 p.m. on the first floor of the Milwaukee State Office Building at 819 N. 6th Street in conference rooms 40 and 45.
The purpose of the hearing is for the Wisconsin Department of Children and Families to determine if it should end SDC's designation as a community action agency. Without this designation, SDC is ineligible for the federal Community Services Block Grant, which provides funding to hundreds of local agencies around the country to reduce poverty.
SDC is the only agency in Milwaukee County with this designation.
SDC suddenly suspended operations last April after financial difficulties.
Despite reopening partially in December, the agency has not provided any meaningful Community Services Block Grant programming since its initial closure, according to the Wisconsin Department of Children and Families.
As a result, the department said SDC is out of compliance with state and federal law and its contract. The department also alleges SDC has continually given state officials inaccurate information about its financial health.
SDC officials said they were blindsided by the department's decision and have been transparent and communicative with the state about SDC's finances.
Yes. First, the Wisconsin Department of Children and Families will explain the reasons it wants to terminate SDC's status. Then, community members will have the opportunity to sign up to share comments at the hearing.
People can also email written comments to the state department at The deadline to send written comments is April 3.
The Wisconsin Department of Children and Families will share its final decision after the meeting in a formal letter. The department has not set a date for issuing its decision.
No. The agency's attorney, William Sulton, said that losing the grant won't be the end of SDC, which had a $30.5 million operating budget last year.
SDC was created by state statute in 1963 as a "community relations-social development commission," charged with studying, analyzing and recommending solutions to poverty.
The Wisconsin Department of Children and Families will work with Milwaukee County officials and other local partners to identify nearby agencies eligible for the Community Services Block Grant that can provide services to county residents, said department spokesperson Gina Paige.
If those agencies decline, the state department will solicit applications from other organizations. Applicants would have to meet Community Services Block Grant requirements and gain the approval of Wisconsin Department of Children and Families, the county and city, Paige said.
This article originally appeared on Milwaukee Journal Sentinel: SDC could lose millions in federal funds to fight poverty in Milwaukee
