Montana Legislature Tackles Medicaid, Budget, Taxes in 2025 Session

Lawmakers entered Montana's 2025 session facing many questions: Medicaid renewal, budget decisions, property tax relief.


How the 2025 Legislature answered Montana’s big policy questions

Entering the 2025 Montana Legislature session, key issues awaited resolution, including renewal of the state’s expanded Medicaid program, decisions on state budget allocations, and measures to curb rising property taxes. Legislators also tackled a landmark climate ruling and debated funding for underfunded schools. Republican judicial reform proposals further crowded the agenda, as Lawmakers convened from January to April.

Montana Free Press covered these developments extensively, reporting over 150 stories on the legislature’s political dynamics. Key issues included Republican Gov. Greg Gianforte’s agenda and how redistricting controversies empowered Democrats.

Did lawmakers pass property tax relief?

✅ Answer: Yes. Lawmakers approved bills lowering taxes for homeowners by raising them on second homes and vacation rentals. This change aims to offer “significant” relief on primary residences but won’t be fully realized until 2026. Meanwhile, interim tax rates and $400 rebates will aid homeowners frustrated by rising taxes.

🖊️ Has the Governor signed it? The governor has not yet signed the bills but expressed support on social media.

Did the governor’s budget get approved by lawmakers?

✅❌ Answer: Partial approval. The Legislature authorized parts of Gianforte’s budget, including raises for state employees and funding for health services, but a proposed income tax cut was less than the governor sought. House Bill 2 authorized significant spending, including a $500 million trust supporting various state programs.

🖊️ Has the Governor signed it? Some budget bills, including employee raises, are signed. Key measures await the governor’s decision. Gianforte might veto the “cops and conservation” marijuana bill in favor of another measure.

Did lawmakers tackle the luxury ag property tax loophole?

❌ Answer: No. Efforts to close the tax loophole for luxury homes on agriculture-designated lands failed. These properties remain protected from the full impact of new tax measures.

Did the Legislature address overcrowded prisons?

✅ Answer: The Legislature approved bills to expand prison capacity, including House Bill 833 for constructing a new facility. However, completion will take years, leaving 600 inmates out-of-state.

🖊️ Has the Governor signed it? The governor has praised the prison investments but has not signed the bills yet.

Did lawmakers boost school funding?

✅ Answer: Yes. The Legislature passed the STARS Act, investing $100 million in raising teacher salaries. Additional funds are allocated for schools with high dual credit and certification rates.

🖊️ Has the Governor signed it? The STARS Act awaits the governor’s signature.

Did lawmakers approve a change aimed at boosting math proficiency?

✅ Answer: House Bill 338 was introduced to improve math scores by enhancing early childhood numeracy programs. The bill has been passed on to the governor.

🖊️ Has the Governor signed it? The bill is pending the governor’s signature.

Did legislators do anything aimed at boosting housing affordability?

✅ Answer: Yes. Laws were passed to fund residential infrastructure and limit local zoning powers, aiming to boost housing construction.

🖊️ Has the Governor signed the bills? The measures await the governor’s decision.

Did lawmakers pass bills to address the cost and availability of child care?

✅❌ Answer: Child care workers gain access to state assistance and trust funds are established for infrastructure support. However, a comprehensive tax credit bill was defeated.

🖊️ Has the Governor signed it? The governor has yet to sign related bills.

Did lawmakers renew Montana’s expanded Medicaid program?

✅ Answer: The Medicaid expansion, benefiting low-income adults, was renewed with bipartisan support. Other Medicaid-related bills are pending.

🖊️ Has the Governor signed it? HB 245 is signed, but others await approval.

Did legislators pass measures to restrict access to abortions?

✅❌ Answer: Efforts to introduce restrictive abortion measures largely failed, but two bills on crisis pregnancy centers passed.

🖊️ Has the Governor signed it? HB 388 has been signed.

Did lawmakers pass other health policies?

✅❌ Answer: Laws were approved to fund a mental health facility and protect insurance coverage for chronic conditions. Vaccine-related bills were largely defeated.

🖊️ Has the Governor signed it? Only HB 398 has been signed so far.

Did the American Indian Caucus pass their priority bills?

❎ Answer: The American Indian Caucus successfully advanced several bills, including those addressing Indigenous Peoples Day and child welfare issues.

🖊️ Has the Governor signed it? One bill has been signed, and others are pending.

Did lawmakers change the state’s environmental laws following the Held v. Montana ruling?

✅ Answer: Republicans passed amendments to the Montana Environmental Policy Act, shaping how climate impact disclosures are managed.

🖊️ Has the Governor signed it? The governor conducted ceremonial signings for SB 221 and HB 285.

Did lawmakers make changes to laws on water quality and exempt water wells?

✅❌ Answer: Changes to water quality standards passed, but exempt wells remain unchanged despite legislative discussions.

🖊️ Has the Governor signed it? HB 664 is signed, HB 587 is pending.

Did legislators change the state’s election laws?

✅ Answer: Legislators tightened voter registration deadlines and passed laws concerning student IDs and ballot initiative procedures.

🖊️ Has the Governor signed it? Key bills are on their way to the governor.

Did bills created by the Senate Select Committee on Judicial Oversight and Reform become law?

❌✅ Answer: Seven out of 27 judicial reform bills passed, including campaign contribution and judicial review measures.

🖊️ Has the Governor signed it? HB 39 is signed, others await the governor’s pen.


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