Montana legislative closes with property tax relief, education funding, Medicaid expansion, transgender debates and renewable resource exploration

By Emma White and Clayton Murphy | UM Legislative News Service, University of Montana School of Journalism

HELENA — Lawmakers gathered at the Capitol in January with a clear message from their constituents: The people of Montana are struggling to afford to live in Big Sky Country.

The “working Montanan” was at the forefront of the policy decisions made by lawmakers this session, as Montanans struggle under the burden of high property taxes amid rising costs of living nationwide.

There was no shortage of controversy as the legislators struggled with party-line divisions and their own personal ideals. Alliances were made, majorities were upended, and measures passed for property tax relief in the eleventh hour.

Senate Democrats joined with nine Republicans to hold a working majority on a number of key votes on many key policy issues. The alliance emerged on day one of the session and set the tone for a session rife with controversy and hurt feelings.

Coupled with an ethics investigation into Sen. Jason Ellsworth, R-Hamilton and his subsequent censure that included banning him from the Senate floor for life, chaos reigned in the higher chamber. 

When the scales tipped in favor of the moderates and the Democrats, Sen Susan Webber, D-Browning, said the session got “mean.” She said in her opinion, traditional Senate decorum was “trampled on” by those in the majority.

“We’re supposed to be statesmen and women…we’re supposed to act like that,” Webber said. “We’re supposed to act with respect and respecting the voice of all the people.”

But Sen. John Esp, R-Big Timber, said the 23 Republican lawmakers not in the alliance felt edged out of the decision-making process, with little meaningful input in the policy that passed. In past sessions in which he was part of the minority, Esp said he still felt like a meaningful part of the process. But with the rule changes and lack of communication this session, he said it felt quite different.

“I think the minority can be an asset, because it causes the majority to think harder about what they’re doing if you use the rules that were in place, but if you just create rules that don’t ever have to talk to them, you just blow your agenda by,” Esp said. “There is no need to engage the minority.”

Medicaid Expansion Renewed, Behavioral Health Programs Advance

In the midst of the hostility, healthcare was one area where the legislators were able to find common ground.

Medicaid expansion and improvements to the behavioral health system were the two heavy-hitters in healthcare policy this session. A continuation of Medicaid expansion, which is a program funded by state and federal dollars that provides health insurance to adults up to 133 percent of the poverty line, passed early on. Rep. Mary Caferro, D-Helena said this was a win.

“I think that Medicaid expansion is is really important, because it’s a real fair application of health care,” Caferro said. “And it’s fair to all the state in that no matter where you live, if you’re covered by Medicaid, you can go to the doctor, you can go to the hospital and take care of health when it’s the most effective and efficient way to do it.”

Rep. Jane Gillette, R-Three Forks, chair of the Health and Human Services Appropriations Subcommittee, said she wished the topic could have been discussed more, but said the expansion had already been “baked in” to the budget and it was a bit of a done deal.

“All policies, especially one that’s $2 billion…should probably be debated,” Gillette said. “It should probably be debated, and probably, you know, stand on its merits and people vote however they want.”

But Gillette said she’s happy with the work that the Legislature has done on behavioral health, though she worries about how the state will continuously fund the programs they are creating. Gillette and Caferro both highlighted the implementation of Certified Community Behavioral Centers in Montana, which Caferro said both she and Gillette championed.

“We don’t have a funding stream ready for that, which is a really big deal,” Gillette said. “So here we’re taking these important steps, and at the same time we’re going to run out of money.”

Caferro said she is confident that lawmakers can find a solution to the funding situation for the Behavioral Health System for Future Generations initiative if they prioritize patient care and utilize their resources wisely.

“The sustainability of the funding for BHSFG  is 100 percent possible,” Caferro said. “Needs to be creative minds. It’s not all about the money, it’s also about the priority for spending.”

Lawmakers Explore New Energy Systems, Lower Water Quality Standards

Lawmakers continued to debate energy systems and water regulations in the 2025 Legislative session as Montana continues to waver between investments in renewables and traditional methods of extraction.

Two bills open the door for nuclear energy production in the state of Montana: House Bill 623 and House Bill 696. They passed through both chambers and are on the governor’s desk.

Also on the governor’s desk are several bills to regulate and expand on Montana’s renewable energy production. House Bill 31 and House Bill 939 both seek to regulate wind energy projects, while Senate Bill 188 would allow for shared solar energy production, which supporters say is a huge win for Montana’s renewable energy development.

In the natural resources realm, lawmakers passed two bills that loosen water quality standards in the state: House Bill 664, which would repeal nutrient standards for Montana’s water, and House Bill 587, which would change the definition of “material damage” to water systems from coal mining. Both passed the Legislature and await signatures from the governor.

Democrats Alarmed as Transgender Bills Pass With Strong Support

A slew of bills passed the Legislature this session that supporters say are protecting the privacy and dignity of Montanans, and opponents say are targeting the LGBTQ+ community.

Gender-affirming care was the subject of hot debate. Senate Bill 218 focused on extending the statute of limitations for minors who receive gender affirming care to claim harm from the treatment, with proponents saying that minors need extra time for their brains to develop and evaluate the effects of procedures, and opponents saying it creates a worrisome situation for healthcare providers. House Bill 682 also extended the age for filing a claim of malpractice for minors and added detransition treatment to the list of required coverage under health insurance. Both bills passed and await the governor’s approval.

And in the public sphere, there was House Bill 121, requiring individuals to use the restroom of their sex assigned at birth, and House Bill 446, which changes indecent exposure laws to make it a crime for an individual to intentionally expose their genitals in a public place to someone of the opposite sex assigned at birth, which opponents worry could harm transgender individuals going about daily activities such as changing at a gym or a communal locker room. House Bill 300, which bans an individual whose sex is male from participating in women’s sports, was signed into law along with HB 121, while HB 446 awaits the governor’s signature.

These bills sparked lengthy and emotional debates in both chambers. On the Senate floor in the last days of the session, tempers flared in a discussion of HB 446, with Democrats arguing that the bill targets a vulnerable population and Republicans saying they are merely preserving the privacy of all Montanans.

“If we pass a law that says that we are going to protect the dignity of an individual, that does not target or otherwise demean other individuals,” Sen. Daniel Emrich, R-Great Falls, said during the Senate floor debate over HB 446. “There is equal protection under this statute.”

But Sen. Cora Neumann, D-Bozeman,  said the language and the scapegoating tactics in these bills bear striking similarities to the ostracization of Jewish people in the lead-up to World War II and the Holocaust.

“If you are in a demographic that has ever been targeted, oppressed, hunted, and murdered, we are on the track for this here,” Neumann said in the same debate. “And so I am asking you to not concur.”

Faltering Tax Proposals End in Republican Frustration

A months-long melee over property tax reform culminated in the final three days of the session when lawmakers passed a controversial set of property tax relief bills amid worries of unconstitutionality and misplaced spending.

The bills would lower property taxes for primary residences by about 40 percent and give most of those residences a $400 rebate this year. But taxes would increase for second homes and large businesses, drawing harsh criticism.

But Minority Leader Pat Flowers, D-Belgrade, said that anger was confounded.

“It is a tax reduction for residents of Montana. That’s what they’ve asked for,” Flowers said during a floor session on April 29. “They didn’t ask us to maintain exactly the same taxes on oil refineries.”

The bills would also draw $62 million from the state’s general fund in 2026. Both the governor and lawmakers across the aisle have vocally opposed using general fund money for tax relief.

Conversation eventually returned to the recently approved $16.6 billion state budget, which has drawn fire for what some call irresponsible spending.

“That is no way affirm to our taxpayers that we are looking out for their tax dollars. Instead, we have turned around and we’re doing a wonderful tax shift,” said Sen. Becky Beard, R-Elliston.

Republican Senate leadership said they expect the governor to veto the bill and that they will continue to work on a “real solution.”

A different property tax bill, Senate Bill 117, also awaits Gov. Greg Gianforte’s signature. SB 117 would mandate local governments to put a portion of income from newly taxable value toward special property tax relief accounts.

Education Boxes Ticked

From scholarships to pay increases, it was effectively payday for Montana’s education system this session.

A bill increasing starting teacher pay in Montana awaits final approval by Gov. Greg Gianforte. The STARS Act would raise starting salaries to about $45,000 and passed out of both chambers with bipartisan support, as have several other high-profile education bills this session.

Rep. Jonathan Karlen, D-Missoula, passed a bill creating the Best Beginnings Scholarship, which helps low-income families and childcare workers pay for childcare. That bill also awaits approval from the governor.

And students who qualify for reduced-price school meals could soon get those for free under a bill from Rep. Melissa Romano, D-Helena. But another bill from the representative that would have funded sixth-grade students at the same rates as seventh and eighth graders died. She said she plans on continuing that conversation into the interim, along with other priorities.

“I think we’re going to probably see, as time unfolds, that we have a pretty severe shortage in special education teachers,” Romano told the UM Legislative News Service. “So I’ve already been thinking about moving forward, what that will look like in the next session, and how we can incentivize special education teachers.”

Rep. Linda Reksten, R-Polson is chair of the House Education Committee. She said she is proud of the committee’s bipartisan efforts and looks forward to next session.

“We’re going to build on that momentum in the interim,” Reksten said in an interview.

Lawmakers passed a pile of study bills that will keep their interim committees busy until the next session. Many of them focus on the instability in federal funding, and how to keep Montana’s economy stable in the shifting climate. The Legislature is scheduled to meet again in January of 2027, unless changes on a federal level prompt a special session.

Clayton Murphy and Emma White are reporters with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu. White can be reached at emma.white@umconnect.umt.edu

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Jenn Rowell