MADISON, WI (AP) -

The state was warned twice that it could have lost $28 million in federal funding had federal money been used to pay for a controversial $500,000 grant.

The Wisconsin Department of Natural Resources has released two letters from the U.S. Fish and Wildlife Service warning that the grant would violate federal rules by removing control of the money from the DNR to the Legislature and lead to a loss in the $28 million.

The Wisconsin State Journal reports Thursday that Gov. Scott Walker's veto resulting in the state paying for the grant saved it from losing the federal funds.

The grant was awarded to the politically connected United Sportsmen of Wisconsin Foundation, but Walker last week ordered it rescinded over questions about the group's tax-exempt status.