New Report Highlights What’s at Stake for Montana if Federal Funding Declines

As a foundation dedicated to funding and supporting nonprofits across Western Montana, we see every day how vital these organizations are to the health and well-being of our communities – and how mounting challenges are putting their work at risk.

Federal funding is a cornerstone of our state’s infrastructure, accounting for 43% of Montana’s state government revenue – well above the national average. These dollars fuel everything from education to health care, transportation to public safety.

That’s why we supported the Montana Nonprofit Association in releasing a new white paper: ‘Potential Impacts of Federal Cuts to Montanans and Montana’s Economy.’ The report, developed in collaboration with Headwaters Economics, outlines the essential role that federal funding plays in the lives of Montanans – and what we all stand to lose if that funding is reduced or eliminated.

Federal programs help Montanans meet basic needs. In Montana, over 214,000 people rely on Medicaid, 262,000 on Medicare, and more than 37,000 households depend on SNAP for food. Cuts to these programs would hit our rural and low-income communities the hardest.

These programs don’t operate in a vacuum. Nonprofits across the state connect people to these services and support the well-being of our communities. Montana’s nonprofit sector is also a powerful economic engine – the third-largest employer in the state, generating more than $3.6 billion in annual wages. In Lincoln County, there are 179 nonprofits, some of which brought in nearly $2.5 million in federal grants in the past four years. In rural counties like Valley and Deer Lodge, nonprofits account for up to 23% of local wages and one in five jobs.

Everyone in our state has been impacted by a nonprofit – whether through after-school care, access to health care, assistance for aging family members, or other direct support. Right now, the valuable services and economic contributions of nonprofits are in jeopardy.

On average, Montana nonprofits receive $134.4 million annually in federal contracts, grants, and loans. Many of these funding streams have supported local organizations for decades. Of the 667 Montana nonprofits that receive government funding, 64% would be financially at risk if it were reduced.

The truth is – there isn’t enough philanthropic funding in Montana to replace the role of federal funding in ensuring our neighbors are safe, healthy, and connected to opportunity. In fact, foundations would need to increase giving by 282% to fill the gap if government support were lost.

As nonprofits face this challenge, federal program cuts would also reduce investments in disaster response, rural fire departments, agriculture, and public lands, potentially leading to increased long-term costs and decreased economic activity for communities.

Montana has long benefited from receiving $1.40 in federal funding for every $1 paid in federal taxes. This support helps sustain our state and ensures we have health care, infrastructure, and quality schools. If federal funding and the federal workforce continue to be reduced, the consequences will be felt by all of us, including farmers, veterans, tribal communities, schools, seniors, and people with disabilities.

Montanans have always stepped up for one another. Right now, we need our elected leaders to do the same – by protecting the federal programs that keep our communities safe, healthy, and thriving.

Find the full report here!

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