The federal government had allocated these funds to Madison's State and Local Fiscal Recovery Funds (SLFRF) to assist residents in recovering from the economic impact of the pandemic and the subsequent public safety lockdown measures. However, the IRG's Center for Investigative Oversight (CIO) probe revealed that approximately 10% of the total SLFRF, amounting to around $700,000, was redirected to nonprofit organizations aiding illegal immigrants. The findings of this investigation were made public on Wednesday.
Jake Curtis, IRG’s General Counsel and Director of Oversight, expressed his concern over this issue in a statement on Wednesday. He said, “It is troubling to learn that the City of Madison is funneling taxpayer dollars intended to help Wisconsites to illegal immigrants. Taxpayers need answers.” He further emphasized the commitment of the Center for Investigative Oversight to work with state and federal partners to provide clarity to the taxpayers of Wisconsin.
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The IRG report points out that these funds were allocated to nonprofits supporting illegal immigrants, who typically do not qualify for federal or state aid, except in exceptional circumstances. The report also notes that these funds continue to be distributed to migrants through these nonprofits, despite the pandemic having largely subsided.
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In response to these revelations, Republican Wisconsin state Sen. Duey Stroebel, chair of the Senate Committee on Government Operations and vice-chair of the Joint Committee on Finance, has demanded answers from the city of Madison. He wants to know the exact use of the SLFRF and the details of the grant applications that were accepted or denied.
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Sen. Stroebel stated, “As a State Senator, it is my responsibility to be a steward of taxpayer dollars and look out for the interest of Wisconsin families. Wisconsinites deserve to know where this money is being spent and what it is being spent on. That is why, upon hearing of the City of Madison’s actions, my office has filed an open records request to investigate the City’s questionable use of SLFRF funds.”
The House Oversight Committee has reported several instances of misuse of federal COVID-19 relief funds, with about $280 billion stolen by domestic and international actors as of August 2023.
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