Federal Money Accounted for Nearly 43 Percent of State Spending

(Helena) – A new report reveals that federal money accounted for nearly 43 percent of all Montana state spending during the 2026 fiscal year.
According to data from the Montana Legislative Branch, the state spent 4.2 billion federal dollars between July 2025 and June 2026.

Two-thirds of that total went directly toward health and human service programs. The largest single driver was Medicaid. The health coverage program ate up roughly 2 billion dollars—accounting for three-quarters of the state’s federal healthcare budget.

The remaining funds provided a vital safety net for families, covering assistance programs like SNAP food benefits, childcare subsidies, and home energy aid. Outside of healthcare, federal dollars heavily reinforced Montana’s infrastructure, financing local K-12 education, highway construction, and clean water grants.