Missoula, MT — Governor Greg Gianforte delivered his third State of the State address on Monday to a Republican-controlled Montana Legislature, outlining a series of proposals that reflect his ongoing commitment to a conservative vision for the state. Now in his second term, Gianforte emphasized tax cuts, judicial reform, and increased pay for public workers, including teachers and Montana Highway Patrol Troopers.
In a speech that highlighted his administration’s accomplishments since 2021, Gianforte underscored his success in lowering the state’s income tax rate, reducing it from 6.9% to 5.9%. He called for further cuts, proposing a reduction to 4.9%. This move, Gianforte argued, would provide significant tax relief to workers and small business owners while expanding the earned income tax credit for lower- and middle-income residents.
“Since 2021, we’ve lowered the income tax rate most Montanans pay from 6.9% to 5.9%. We should go farther. We should reduce that income tax rate from 5.9% to 4.9%, providing tax relief to workers and small business owners alike,” Gianforte said. “Our proposed tax cut provides more than $850 million in permanent relief, a new record tax cut that benefits Montanans at every income level.”
On property taxes, which have become a focal point of political debate in recent years, Gianforte proposed legislation to create a “homestead exemption” for Montana homeowners. This reform, he argued, would lower property taxes by 15% for homeowners and 18% for small businesses. The reform is expected to reduce taxes for over 215,000 homeowners and 32,000 small businesses while providing indirect relief to an additional 130,000 renters.
“Rising property taxes fuel the affordability crisis that’s pinching homeowners across the country. We must do something about it,” Gianforte said. He also reiterated that local governments play a key role in setting property tax rates, calling attention to disparities between liberal-leaning counties like Missoula and conservative-leaning areas like Flathead.
In a nod to his party’s stance on judicial issues, Gianforte called for further judicial reforms. He specifically advocated for a bill that would require judicial candidates to disclose their political party affiliations. The proposal comes amid ongoing legal challenges to several laws passed in 2023, including the state’s ban on drag story hours and its ban on gender-affirming care for minors. Gianforte’s remarks on the judiciary were in line with his broader push for more transparency and accountability in the judicial selection process.
“Montanans have a right to know the values and principles of the judges they elect. Let’s bring light to this darkness,” he said.
The governor also outlined proposals aimed at improving the pay for public workers. He called for a $100 million investment in increased teacher pay, $6.5 million for state prison guards, and a $7 million boost to the Montana Highway Patrol’s budget to support pay increases for troopers. The latter proposal received applause from both Republicans and Democrats in attendance.
“It’s men and women like Trooper Villa who protect our communities, and we need to pay them what they deserve,” Gianforte stated.
However, the address did not provide clarity on one of the most pressing issues for the 2025 legislative session: the future of Montana’s Medicaid expansion. Gianforte did not directly address whether the state’s Medicaid program should be renewed.
Following Gianforte’s speech, Senate Minority Whip Shane Morigeau of Missoula offered the Democratic response. Morigeau emphasized affordability as a key issue, citing rising costs in housing, property taxes, childcare, and healthcare that are affecting many Montanans.
“All of our proposals center around the need to make Montana affordable again,” Morigeau said. “Affordability is a cornerstone opportunity. Yet between housing, property taxes, child care and health care, costs are all on the rise. Too many Montanans are struggling to make ends meet. Myself and my fellow Democrats are ready to turn the tide.”
The address also sparked a response from the staunchly conservative Freedom Caucus within Gianforte’s own party. Led by Chairman Jerry Schillinger, the group held a press conference after the speech to outline their legislative priorities. While they expressed agreement with some of the governor’s goals, they also voiced concerns about the size of government and the pace of spending.
“It’s easy for Republicans to be socially conservative, we typically all unite on that,” Schillinger said. “But what’s difficult is being fiscally conservative. It seems like a lot of us lose our focus when we’re not pulling money out of our own pockets. We think that our direction isn’t shrinking government and we’re continuing to grow government at too fast of a pace.”
The 2025 Montana legislative session is expected to be shaped by these ongoing debates over tax policy, public spending, and the role of government, with significant division between the state’s conservative factions and the Democratic minority. As the session progresses, Gianforte’s proposals are likely to remain at the center of Montana’s political discourse.
