Federal Dollars Impact Every Corner of Montana

Mar 31, 2025

On January 27, 2025, the current federal administration announced a temporary pause in federal grant, loan, and other financial assistance programs. This would have had an enormous impact on programs in Montana and elsewhere while disproportionately threatening individuals of marginalized communities. Since this temporary pause introduction, two federal court judges have ruled to block this pause as ruled unconstitutional. While temporarily blocked, the freeze has disrupted financial planning and left a dangerous uncertainty for individuals and programs relying on federal funds.

Montana relies on federal grant dollars for programs that impact many Montanans.

  • In 2024, Montana received about $4 billion in federal funding that directly supported public services, people, and communities across Montana. 
  • Overall Montana receives more in federal funding than it pays in through federal taxes. In 2022, Montana received $5,011 more federal dollars per capita back than taxpayers contributed, ranking us the nation’s 18th highest that year. 
  • Montana contributed a total of $13.9 billion to the federal government while receiving back $19.6 billion in federal dollars. 
    • This means Montana’s net return for federal dollars was about $5.6 billion.

Facts and Figures on Federal Grant Dollars in Montana 


What Federal Funding Does Montana Receive?

Federal dollars fund a wide range of public services and programs that support the lives of Montanans, from health care to funding public schools. Some states receive far more in Federal spending than their residents and businesses pay through taxes. Revenue for federal funding is generally primarily from taxes, which typically accounts for about 90% of the federal revenue. The table below shows how much the state of Montana received in federal revenue in 2024, broken down by program focus.

Executive Federal Grants Freeze: Sloppy and Dangerous

Risking billions of dollars for essential federal funding to programs in Montana is sloppy and dangerous. This freeze could affect many vulnerable populations, including children, Tribal nations, parents, and renters. Montana receives far more in federal support than what is paid in. While courts have temporarily blocked the federal funding freeze, the quick and unprecedented initial effort signals a great concern for programs supported by federal funds moving forward.

What Can You Do?

We encourage Montanans to contact their U.S. Senators, Steve Daines and Tim Sheehy, and U.S. Representatives, Ryan Zinke and Troy Downing. Let these elected officials know that federal funding matters to you and your communities.

Montana Budget & Policy Center

Shaping policy for a stronger Montana.

MBPC is a nonprofit organization focused on providing credible and timely research and analysis on budget, tax, and economic issues that impact low- and moderate-income Montana families.