Montana Gov. Greg Gianforte delivers the State of the State address before a joint session of the Montana Legislature on Jan. 13, 2025. (Micah Drew/ Daily Montanan)
Montana is a shining example for what the country can achieve, Gov. Greg Gianforte said Monday night in his biennial State of the State address. The second-term Republican told a joint session of the Legislature his administration will ensure the “state of our state remains strong” into the future by prioritizing tax cuts, protecting the state’s youth and addressing the affordability crisis during his second term in office.
“We believe in the unsurpassed spirit of Montanans — our resilience, our work ethic and our deep connection to this land we love. Our policies aim to unleash that spirit,” Gianforte said to begin his hour-long speech.
Gianforte, the first Republican governor reelected to a second term since 1996, told the combined House and Senate, where Republicans hold majorities, that over his first four years in office, he and lawmakers had succeeded in reversing two decades of state government that “hasn’t always done best” by Montana’s children and grandchildren.
But that work is “far from over.”
Democrats and the conservative Republican Montana Freedom Caucus gave rebuttals and outlined their own priorities after the governor’s address.
Missoula Sen. Shane Morigeau gave the rebuttal for Democrats following Gianforte’s address, saying that under decades of Republican leadership — Democrats haven’t had outright control of a legislative chamber since 2007 — Montanans’ lives haven’t gotten better. Republicans, Morigeau said, have been raising property taxes, offering tax cuts for big corporations and “taking away our freedoms.”
Affordability has been a major talking point for both political parties in recent years, and Gianforte’s administration has centered part of its relief plan on cutting income taxes. In his first term, Gianforte pushed to lower the top income tax rate from 6.9% to 5.9%, but he wants to see further reductions down to 4.9%.
He also wants the state to expand the earned income tax credit for lower- and middle-income Montanans, “providing tax relief to workers and small business owners alike,” Gianforte said. His proposed tax cut would provide more than $850 million in permanent relief, but would apply the largest relief to the state’s biggest earners, according to some budget analysts.
“This isn’t just about numbers. It’s about the fundamental idea that people should keep more of what they earn — that they should keep more of the fruits of their labor. It’s their hard-earned money, not the government’s,” he said.
Gianforte’s speech focused primarily on administration priorities he has discussed for months, including during his inauguration speech last week and his budget proposal in November. He called out several specific proposals including taking action on property taxes, investing in education and protecting children and communities.
Rising property taxes are another key pillar of the state’s affordability crisis, and Gianforte convened a Property Tax Task Force between legislative sessions to make recommendations.
The centerpiece of the task force’s 12-piece proposal, which Gianforte urged passage of, is a homestead-comstead rate cut for Montana homeowners in their primary residences, “the place they call home.” The reform is projected to reduce property taxes for more than 215,000 homeowners, 32,000 small businesses, and provide indirect relief to over 130,000 renters, the governor said.
“I don’t believe, for example, a Californian, who drops into Montana just to ski near his vacation mansion, should get a property tax cut,” he said. “It’s not fair to Montanans who own their home, live here, and invest their lives in building their community.”
As one of Gianforte’s top priorities, he urged the Legislature to send the homestead rate cut bill to his desk within a month. “Montanans are counting us to get this done this year, and we should.”
While the governor touted many of the successes his administration ushered in over the last four years, he also called out failed leadership from elected officials in Washington, D.C., for sending strong economic headwinds into Montana.
He blamed the Biden administration for imposing a “crushing national debt,” and contributing to high rates of inflation. He also called out the current president for a role in the affordability crisis that has “forced Americans to pay higher utility bills,” citing a statistic that the cost of energy has risen nearly 30% since 2021.
“While demand for power rises, the heavy hand of the federal government has thwarted energy development. We need affordable, reliable power, and we need the federal government’s support, not obstruction,” Gianforte said, announcing the launch of a new task force aimed at “unleashing” energy. “Montana stands ready to expand energy production to make America affordable again.”
The governor aimed a lengthy portion of his remarks at Montana’s youth, starting with the need to invest in their education system. The TEACH Act aimed to boost starting teacher pay over the last few years, but starting salaries remain low compared to nearby states, and Gianforte’s budget invests an additional $100 million into the program. This drew standing applause from Republicans and Democrats in the chamber.
He also took time to point out the struggles students have in the distraction-rich environments created by cell phones and ever-present apps. He said students should be focused on their teachers, “not on TikTok.” Montana was the first state to ban the popular short-form video app, with a nationwide ban which could take effect next week.
Gianforte has long advocated for “cell phone-free” policies in schools. One of his guests at Monday’s address was Molly Blakely, superintendent of the Hellgate Elementary School District in Missoula, who implemented such a policy in her schools and told the governor of the successes seen in her classrooms.
“Eliminating unnecessary disruptions in the classroom is one step to protecting our kids and their long-term interests,” the governor said.
In the same vein, Gianforte pushed back against all forms of social media as “one of the least obvious, but most prevalent,” threats to youths.
“I’ll be blunt … it’s addictive. It warps their impressionable young minds. It results in bullying. It causes kids to lose sleep and it increases their risk of depression, anxiety and suicide.”
Gianforte urged greater action on restricting social media among youth by enhancing parental controls and proposing a “blackout” curfew on social media for kids overnight.
“Kids need more rest. Not more Reels on Instagram.”
Gianforte drew standing applause from Republicans with his comments on a law banning gender-affirming surgeries for minors, a 2023 measure that was blocked by the courts, and one defining sex as a binary, also overturned by the courts. A similar bill defining biological sex and restricting bathroom use based on biological sex has become the first controversial bill of the 69th Legislative Session when it passed through the House Judiciary Committee on Monday morning. The governor called out this bill specifically, saying that he will welcome the legislation to his desk.
The two bills that affect transgender individuals were both overturned by Montana courts, and Gianforte latched onto the judicial branch as a perennial thorn in the side of his party’s agenda.
“These are all common sense laws, designed to protect Montana children, but far-left lawyers challenged them all. And our courts? Well they’ve sided with the far left,” Gianforte said. He accused “extreme-left, dark-money groups” of pouring millions of dollars into recent Supreme Court races to “elect judges to do their bidding.”
He said the reality is that Montana’s Supreme Court races are “nonpartisan in name only.”
“Montanans have a right to know the values and principles of the judges they elect. Let’s bring light to this darkness,” he said. “That’s why I’m asking you to send to my desk a bill that empowers Montana voters to know a judicial candidate’s political party.”
Gianforte and Republican legislative leaders have repeatedly lifted up judicial reform as a goal this session, but Democrats and former governors and judges have called the reform bills attacks on the constitution.
Balancing investment and budgets
Throughout his speech, Gianforte braided together the critical investments required for Montanans’ futures with the need to remain fiscally responsible. He touted his administration’s ability to make Montana debt-free during his first term and run historic surpluses. Once again, he said, he proposes a conservative, balanced budget that is a “reflection of our values.”
The budget includes investments in public safety, with $150 million to expand capacity at the state prison and $250 million to develop and execute a long-term plan to improve public safety.
It also includes large one-time allocations for infrastructure, including a $10 million annual allocation for bridge repair with a stated goal of fixing 500 bridges over five years.
“Our budget is not unlike the budgets Montana families have. They spend within their means. So do we,” he said. “If they have extra money, they invest it in long-term projects, like fixing a leaking roof, replacing an unreliable heating system, or buying a new refrigerator. So do we: with our schools, roads, bridges, and corrections system.”
Gianforte has campaigned and governed on a promise of getting government out of the way, and pledged to continue doing just that to let “workers and small businesses thrive.
“Together, we will continue to make Montana a shining example of what can be achieved when, guided by our faith and our commitment to serving Montanans, we put our families, our communities, and our way of life first,” Gianforte said in closing. “We will show the nation that America — the ideal of America and the American dream — is alive and well, right here in the Last Best Place.”
Democrats say they will push for ‘free, fair and affordable’ Montana
Morigeau, a member of the Montana American Indian Caucus, gave the rebuttal to the governor’s speech in the Senate chambers, with most of his caucus and a few Republicans in attendance.
While Democrats have lost statewide political power in Montana in recent election cycles, Morigeau took note of the increased number of Democrats elected to the legislature in November, breaking the GOP supermajority from 2023.
“Thanks to Montana voters, we now have a more balanced legislature, with Democrats gaining seats in both houses. We have 13 Native Americans as part of the Montana American Indian Caucus, focused on solutions such as child welfare, fully funding education, and food programs,” Morigeau said. “We know that what’s good for Montana and for Indian Country is good for Montana.”
Morigeau said his caucus expects that better representation will result in better government, including “bipartisan solutions that put Montanans first.”
The vision Democrats put forth for Montana is built around pillars of “freedom, fairness and affordability.”
“Freedom is more than just a word — it’s the foundation of our great state. Democrats have and will always fight for the constitutional rights of all Montanans. Democrats will keep politicians out of your bedroom and doctor’s office,” Morigeau said. “We will also fight to keep politics out of the courts.”
Morigeau said that the Republican attacks against the Court, including those made by the governor tonight, is the party putting its political agenda before the fundamental rights of speech, religion and privacy of their constituents, protections outlined in the state Constitution.
He said that fighting for fairness includes bringing tax relief to lower- and middle-class Montanans, and renewing Medicaid. It also includes a commitment to investing in schools and teachers, and “holding the line on privatization because every child has an equal right to a high quality public education.”
Affordability, from record high property taxes to the increasing housing costs across the state, is the centerpiece of all Democrat proposals during this session, Morigeau said. Affordability is a “cornerstone of opportunity,” he said, but too many Montanans are struggling to make ends meet.
“It’s unacceptable that people feel obligated and forced to quit their job because they can’t access childcare,” he said. “Republican leadership has offered handouts to wealthy out-of-state mansion owners and corporations while our hard working Montanan and Montana families are taking on more and more and more.”
“While the government can’t solve all of our challenges, and really shouldn’t, we must do what we can to help Montanans who are willing to work hard and contribute to the future of our State,” he concluded. “We will work with any and all legislators who are willing to deliver solutions now that will make an immediate positive impact on freedom, fairness, and affordability. Now is the time to get Montana back on track and put Montanans first.”
Montana Freedom Caucus affirms Governor’s vision, pushes goals further right
After the governor’s speech, the Montana Freedom Caucus offered its own priorities, many in alignment with Gianforte’s agenda.
Rep. Jerry Schillinger, R-Circle, said Montana was the fourth state in the U.S. to have a freedom caucus, and it supports property tax reductions, the agenda of incoming President Donald Trump, a “bathroom bill,” judicial reform, and bills to restrict abortion.
However, he said the Freedom Caucus distinguishes itself from other Republicans and some of the governor’s priorities with its desire to hold the line on spending.
“It’s easy for Republicans to be socially conservative,” Schillinger said. “ … What’s difficult is when it comes to being fiscally conservative. It seems like a lot of us lose our focus when we’re not pulling the money out of our own pockets.”
The Freedom Caucus, which includes named and “silent” members of both chambers, has its own property tax proposal.
That proposal is separate from the recommendations coming out of the governor’s task force, including a homestead exemption Gianforte mentioned in his address.
Sen. Carl Glimm, R-Kila, said he’s putting forward a property tax credit that takes tourism dollars and turns them into a credit funded by the bed tax.
“It takes some of that money that those tourists are bringing to Montana, and it puts it back into the pockets of Montanans who are footing that whole bill,” Glimm said.
Rep. Jane Gillette, R-Bozeman, said the Freedom Caucus believes those who can work should work, and the current Medicaid expansion program, set to sunset this summer unless reauthorized, falls short.
“The current Medicaid expansion framework has failed Montana taxpayers, and most importantly, the people who the program reports to help,” Gillette said.
Glimm said legislators could allow the program to sunset as planned, or they could implement a “soft unwind,” a plan that wouldn’t accept new participants and would slowly close out as people become unqualified.
The caucus also spoke against an inter-party rift that occurred last week when nine Republicans joined Democrats in a vote on Senate rules that demonstrated Republican senators are not necessarily united with their leadership.
The spat stalled work for the first week of the session.
Glimm said it was “a big mix up,” and the split will make things more difficult, although the Freedom Caucus will continue to work on its agenda in good faith.
He said the move “gave control to the Democrats in the Senate.”
“That basically happened in spite of the citizens of Montana,” Glimm said. “ … That’s not what Montana voted for in November.
“So we’re going to try and make the best of it. We’re going to try and have some good things happen this session, but it’s definitely more difficult.”