Democratic candidate Brett Hulsey called the hoods, "Republican Party hats."
The two-term state representative, who is not considered a favorite to win the race, was asked whether handing out the hoods was offensive.
"What I find offensive is Gov. Walker and the Republicans' racist record. They’re the ones considering the resolution to leave the United States,” Hulsey told the Wisconsin State Journal.
Members of both parties were quick to criticize Hulsey's plan.
"We take serious issue with the policies pursued by Republicans that disproportionately affect communities of color, but this type of behavior has no place in the public dialogue," Democratic Party Chairman Mike Tate said.
"If true, Brett Hulsey's actions amount to nothing more than a reprehensible, vile stunt and everyone should be outraged,” State GOP executive director Joe Fadness said.