2025-2026 Legislative Bulletin | | |
In this edition of the League's Legislative Bulletin, you'll find:
1. A detailed overview of relevant provisions in the state budget
2. Information from NLC on relevant changes in the federal budget
3. Registration details on the League's Basics of Budgeting webinar
4. An agency anecdote on the PSC's Rural Energy Startup Program
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The State Budget...
Last week, the Legislature was in full swing as they worked to quickly wrap up the 2025-2027 State Budget. Following the Joint Finance Committee taking its final action on Tuesday, July 1st and the Senate and Assembly taking bipartisan votes on passage in the evening hours of Wednesday, July 2nd and early morning hours of Thursday, July 3rd, respectively, the Governor signed the 2025-2027 State Budget into law as Act 15 around 1:30 am on July 3rd, about an hour after the legislature concluded its action.
After a historic session for municipalities two years ago, the League’s Government Affairs team knew that legislative attention was going to be turned towards other investments needed throughout Wisconsin. Yet, through information and advocacy driven by the League and its members, the 2025-2027 State Budget delivered numerous important investments in local governments! Our thanks go out to the members of the Joint Finance Committee, legislators, and the Governor for continuing to prioritize municipal concerns in this compromise budget.
While the budget process was met with twists and turns throughout, legislative leadership and the Governor found common ground, leading to a relatively low number of partial vetoes, many of which were narrow in their scope and none of which had broad impacts for cities and villages. Building on the July 3rd Special Edition of the Legislative Bulletin which included ten things you need to know about the 2025-2027 State Budget, we’re providing a more detailed analysis of the final budget and its provisions relevant to municipal governments.
| | As some bills considered in a legislative session need funding to be effectively implemented, the 2025-2027 State Budget has impacts beyond just the appropriations. Our biweekly summary of bills with League lobbying positions has been updated to note legislation with ties to the budget. As noted in the document linked below, two pieces of legislation we were lobbying on were fully included in the budget and two other pieces of legislation had funding set aside in the budget pending passage of the legislation. | | |
Other bills with municipal impacts where the League hadn’t taken a position were also funded in the budget. This includes two bills which were signed into law by the Governor last week.
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2025 Wisconsin Act 14 establishes a program where the Wisconsin Department of Transportation will contract with a manufacturer of reusable hearing protection devices and offer those devices to local law enforcement agencies and fire departments. Up to 10 devices will be offered at no cost, while additional devices may be purchased at half of the typical cost of the hearing protection device. The budget included $2.6 million for this program.
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2025 Wisconsin Act 10 allows for minors and their parents or guardians to authorize the release of a minor safety plan to law enforcement officers and others that may encounter the minor when they’re in a mental health crisis. Developed by professionals after the minor experiences a mental health crisis, these plans may help to guide an officer’s de-escalation approach. This legislation was modeled after a pilot program in Ashland and Bayfield Counties. The budget provided $819,200 for the technology upgrades needed to securely share the plans.
With the 2025-2027 State Budget now enacted, stay tuned to future Legislative Bulletins as we discuss the impact of the state budget on your municipal budget and relay information on how to take advantage of the new programs established by the budget.
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The Federal Budget...
At the same time the Wisconsin state government was working on their budget, the federal government was working on the One Big Beautiful Bill, which is the name given to the 2025 budget reconciliation bill. Reconciliation is a special congressional process that allows for a simple majority in the Senate on bills that have budgetary impacts. The One Big Beautiful Bill was passed by the Senate on July 1st, House on July 3rd, and signed into law on July 4th.
The first key takeaway from the reconciliation bill is the preservation of the tax-exempt status of municipal bonds. While there have been discussions on eliminating this status, which would cause the cost of financed infrastructure projects to rise, neither the House nor the Senate passed a version that included the elimination of the tax-exempt status of municipal bonds.
The second key takeaway is changes to the Low-Income Housing Tax Credits, or LIHTC. The state ceiling for this program was raised by 12% and the bond-financing threshold was lowered to 25% starting in 2026. LIHTC has funded projects across Wisconsin, and these federal changes could help to spark more affordable housing projects in communities of all sizes.
The National League of Cities (NLC), the League’s partner for federal advocacy of matters important to cities and villages in Congress and the Executive Branch, has a more detailed breakdown of the Senate’s version of the One Big Beautiful Bill. Visit NLC’s website to learn more.
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And Your Budget
Municipal budgeting season is right around the corner when cities and villages evaluate their finances and set their priorities for 2026. Whether you are new to local government and want to learn about how budgets are developed or are a seasoned veteran looking for a refresher, the League’s Basics of Budgeting Webinar can help!
Held on Tuesday, July 15th from 9am to 12pm, expert speakers will cover annual budget development, publication information, community engagement, and setting up a capital improvement plan. You’re encouraged to register by Monday, July 14th at noon to ensure your spot is reserved for this important educational event.
| | For those interested in learning more about the budgeting and financial management of cities and villages, the League also offers a Basic Financial Administration for Wisconsin Local Governments publication. This helpful guide, along with other publications, may be purchased on the League's website. | | |
Agency Anecdotes
Rural Energy Startup Grants Webinar
The Public Service Commission of Wisconsin (PSC) recently posted a recording of a webinar they held to provide an overview of the Rural Energy Startup Grant Program’s eligibility and award criteria. The recordings and webinar slides, along with additional information and application materials, are available on the PSC’s website.
As a reminder, the Rural Energy Startup Grant Program, which was announced in the June 23rd edition of the Legislative Bulletin, provides awards of up to $125,000 to rural local governments to develop energy plans or conduct energy audits or projects. No match is required, and applications must be received by 1:30pm on Wednesday, July 16th.
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