News of the Day

The Wisconsin REALTORS Association (WRA) has released its December 2025 Real Estate Report, revealing a strong finish to the year for the housing market. Compared to December 2024, existing home sales rose 4.4% and the median price rose 2.5% to $312,750.

Amy Curler, board chair of the WRA, said, “It’s good to see a second straight year of improved sales in the Wisconsin housing market, and the moderation of price appreciation to a more sustainable level below 5% is also a welcome sign.”

Throughout 2025, the housing market experienced moderate growth overall. Existing home sales were up 2% from 2024, with the median price increasing by 4.8% to $325,000.

Despite a slight increase in total listings, new listings decreased by 5.9%, and available inventory fell by 3.3% compared to December 2024. The 30-year fixed mortgage rate dropped by half a percent over the last year to 6.19%.

In our latest Short-Term Energy Outlook, we forecast retail U.S. gasoline prices will be lower the next two years than in 2025, falling 6% in 2026 and then increasing 1% in 2027. Our gasoline price forecast generally follows a similar path as global crude oil prices, but decreasing U.S. refinery capacity this year may offset some of the effects of lower crude oil prices on gasoline, especially in the West Coast region.

On a regional basis, we expect gasoline prices to decrease in every region in 2026 and increase in 2027. Despite that expected increase, 2027 average gasoline prices remain less than 2025 averages in every region except the West Coast (PADD 5), where we expect the upcoming loss of refinery capacity will contribute to relatively higher gasoline margins and gasoline prices that are about equal to 2025, in nominal terms.

The West Coast region typically has the highest gasoline prices in the country, and we expect that trend to continue through 2027. We expect the Gulf Coast region to maintain the lowest gasoline prices through the forecast, followed by the Midwest.

Our forecast for generally lower retail gasoline prices over the next two years follows an ongoing trend of falling gasoline prices since reaching a historical high point of $5/gallon in mid-2022. On a nominal basis, we estimate the 20 cents-per-gallon decrease in 2026 will be comparable to price decreases in 2024 and 2025.

The price of crude oil is the largest factor in determining U.S. retail gasoline prices. In the previous 10 years, the price of crude oil used at U.S. refineries accounted for slightly more than 50%, on average, of the retail average gasoline price. In 2026 and 2027, we expect crude oil’s contribution to the retail average gasoline price to fall below 45%, on an annual average basis. We expect global increases in crude oil supply to continue to outpace increases in demand in 2026 and for crude oil prices to fall to their lowest annual average since 2020.

Last Thursday, the United States Department of Labor’s Employee Benefits Security Administration today announced the overhaul of its national enforcement projects for fiscal year 2026 to ensure an even-handed, responsive approach to investigations to produce the best results for American workers, retirees, and their families.

The changes to the national enforcement projects, the most significant EBSA has made in recent years, highlight where EBSA will focus its enforcement resources to increase broad-based employee benefit plan compliance, address abusive practices and bad actors, and deliver results that increase security for participants and beneficiaries.

Under the updated enforcement projects, investigators will prioritize cases related to:

• Cybersecurity
• Barriers to mental health and substance use disorder benefits
• Protecting benefit distributions
• Retirement asset management
• Surprise billing
• Criminal abuse of contributory benefit plans

Although not a national project, EBSA will continue its long-standing commitment to identifying abusive Multiple Employer Welfare Arrangements and preventing fraudulent MEWA operators from opening new arrangements in other states.

EBSA removed Employee Stock Ownership Plans from the national enforcement project list and will reduce its focus on missing participants following the establishment of the Retirement Savings Lost and Found Database.

“We are committed to conducting our investigations in a timely and fair manner, ensuring both compliance outcomes and recoveries that benefit participants and beneficiaries,” said Assistant Secretary for Employee Benefits Security Daniel Aronowitz. “We urge plans and service providers under review to respond promptly to our requests for information and findings, which will aid us in resolving issues efficiently and effectively.”

EBSA is responsible for protecting more than 156 million workers, retirees, and their families who are covered by approximately 2.6 million health plans, 801,000 private retirement plans, and 514,000 additional welfare benefit plans. Together, these plans hold about $13.8 trillion in assets.

Wisconsin state government may have a lot more money than previously expected after new revenue projections show the state’s budget picture improving by $1.5 billion.

The estimates from the nonpartisan Legislative Fiscal Bureau would leave the state with a $2.5 billion balance at the end of the two-year budget on June 30, 2027. The state was previously expecting a balance of closer to a $1 billion.

While the numbers are still just projections, they’re based in part on trends in actual tax collection and represent a significant uptick in revenue, particularly from the corporate and income taxes.

The new estimates are noteworthy, in part, because they come just a half-year after Democratic Gov. Tony Evers and Republican lawmakers reached a budget deal that spent down a previous surplus. That deal included increased spending on Evers initiatives like special education and child care, mixed with GOP priorities, like about $1.5 billion in tax cuts.

They also come at a time when the Legislature is racing to finish its business, and in an election year when control of state government hangs in the balance.

Just days earlier, Evers was promoting his 2026 agenda, including a $1.3 billion package aimed at lowering property taxes.

Republicans said Evers’ plan would be a non-starter until he agreed to repeal his so-called 400-year veto, which would increase state revenue limits for centuries.

When the new revenue numbers were released, GOP cochairs of the Legislature’s Joint Finance Committee said in a written statement that Republicans had put the state in a strong financial position through “stability and restraint,” and these projections would let them continue that.

“Despite stronger-than-expected collection numbers, we must remain cautious,” said Sen. Howard Marklein, R-Spring Green, and Rep. Mark Born, R-Beaver Dam. “These increased revenue estimates are driven in part by strong stock market performance and resulting tax collections. We must be careful when committing to ongoing spending using one-time money.”

Republican lawmakers are moving forward with a plan to cut state taxes on tips in Wisconsin, mirroring a similar change at the federal level.

The GOP bill would create an income tax subtraction for qualified tips that people can deduct on their income tax returns. It would cover tips received in 2025 and continue through the year 2028.

The measure comes about a year after Democratic Gov. Tony Evers included a “no taxes on tips” provision in his proposed state budget, only to see it removed by Republicans who run the Legislature.

At a meeting of the Legislature’s budget committee Wednesday, Democrats said making the change in this bill would require people to file amended returns to take advantage of the tax break. Rep. Deb Andraca, D-Whitefish Bay, said it’s a popular policy that should happen, but not like this.

“Had it passed in the governor’s budget, it would have passed in time for the Department of Revenue to issue tax guidance,” Andraca said. “But doing it now, we’re setting ourselves up for an awful lot of red tape, reprinting forms, having people re-file.”

The plan passed the budget committee 12-4 with only Republicans in support. Sen. Howard Marklein, R-Spring Green, noted that if the state waited a year to implement the change, it would mean workers would have to wait for the benefits. The Legislative Fiscal Bureau estimated the difference would be $44 million.

“We’re talking a lot of money that those taxpayers are going to forfeit,” Marklein said.

The state plan is scheduled for a vote before the entire Assembly Thursday. It has yet to receive a vote before the Senate.

U.S. retail sales rose in November by the most since July, fueled by a rebound in auto purchases and resilient holiday shopping.

The value of retail purchases, not adjusted for inflation, increased 0.6% after a downwardly revised 0.1% drop in October, Commerce Department data showed on January 14.

Excluding cars, sales climbed 0.5%. The report was delayed by the government shutdown.

Ten out of 13 categories posted increases, including sporting goods and hobby stores as well as building materials retailers and clothing outlets.

Motor vehicle sales bounced back after the expiration of federal tax incentives on electric cars restrained sales in the prior month. Higher receipts at gasoline stations also contributed to the overall gain.

Spending at restaurants and bars, the only service-sector category in the retail report, gained 0.6% after falling in the prior month.

The Bureau of Labor Statistics said on Tuesday that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.3% on a monthly basis in December and held steady at 2.7% on a year-over-year basis.

So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% from the prior month and 2.6% from a year ago.

Food prices increased 0.7% for the month and were up 3.1% from a year ago. The food at home index was up 2.4% from a year ago, while the food away from home index was up 4.1% since last year. Both were up 0.7% on a monthly basis.

Energy prices rose 0.3% in December and are 2.3% higher than a year ago. Gas prices were down 0.4% on a monthly basis and have decreased 3.4% since this time last year. Electricity costs declined 0.1% in December but have risen 6.7% in the past year.

Housing prices increased 0.4% in December and were up 3.2% compared with last year. The BLS noted that the increase in the shelter index was the largest factor in the monthly CPI increase. Tenants’ and household insurance costs increased 1% in December and have risen 8.2% over the last year.

Transportation services costs were up 0.5% for December and 1.5% from a year ago. Auto maintenance and servicing costs increased 0.5% for the month and are up 4.9% from last year, while vehicle repair costs declined 3.7% on a monthly basis and are up 6.2% from last December.

Michigan’s Consumer Sentiment Index rose to 54 in January’s preliminary reading from a final reading of 52.9 in December.

“Improvements in January were seen among lower-income consumers, while sentiment fell for those with higher incomes,” Surveys of Consumers Director Joanne Hsu noted.

The report found that year-ahead inflation expectations were steady at 4.2% to start January, which is the lowest reading since January 2025 but well above that month’s 3.3% inflation expectations.

“All told, while consumers perceived some modest improvement in the economy over the past two months, their sentiment remains nearly 25% below last January’s reading,” Hsu added.

“They continue to be focused primarily on kitchen table issues, like high prices and softening labor markets. Although consumers’ worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets,” she explained.

Yesterday, the Federal Reserve Financial Services (FRFS) announced new actions to better support the circulation of pennies for commercial activity. Beginning on January 14, 2026, the Federal Reserve will resume accepting pennies from banks and credit unions at commercial coin distribution locations providing services under arrangements with the Federal Reserve that were previously suspended.

While the Federal Reserve continues to support penny deposits, local inventory constraints had limited that activity at some locations. Our monitoring of the flow of penny deposits from financial institutions as these changes take effect will determine whether some subsequent expansion of ordering options for pennies is feasible, given that penny production has ended.

The Federal Reserve’s role for coin is limited to distribution to banks and credit unions on behalf of the U.S. Mint, which is the nation’s issuing authority for coins. The Federal Reserve does not provide coins directly to businesses or consumers.

The Department of Workforce Development (DWD) encourages employers to apply for Wisconsin Fast Forward (WFF) grants, which aim to address the state’s demand for skilled workers. Employers in every industry and of all sizes across Wisconsin are eligible to apply for this round of WFF funding to train their workers.

The WFF program supports innovative local and regional solutions to help employers meet workforce needs in their areas. Grants reimburse the costs of customized occupational training for unemployed, underemployed, and existing workers. Approximately $1.5 million is available for grants ranging from $5,000 to $400,000, or higher for consortium applicants. The grants can cover training that qualifies workers for full-time positions, higher-level roles, or increased wages.

“The Fast Forward program is a strategic investment in the state’s workforce that fills in-demand positions for employers while offering workers the skills they need to succeed,” said DWD Secretary Amy Pechacek. “These grants strengthen Wisconsin’s workforce for the future, and we encourage employers to apply for funding to support their workforce.”

Eligible applicants include:

• Public agencies
• Private organizations in all industry sectors
• A consortium with the lead public or private organization serving as the applicant
• Tribal governing bodies of a federally recognized tribe or band of Native Americans or an organization appointed by a tribal governing body

Applications are due by 3 p.m. CST Wednesday, Feb. 18, 2026.

More information and instructions to apply can be found at the Wisconsin Fast Forward Program website.