HELENA — Governor Greg Gianforte, R-Montana, delivered his third State of the State on Monday to a Republican-controlled legislature and said he was ready to continue his "conservative vision" for the state.
Now in his second term, Gianforte's speech highlighted accomplishments and focused on tax cuts, judiciary reform, and increased pay for public workers including teachers and Montana Highway Patrol Troopers.
"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," said Gianforte. "That’s why we should expand the earned income tax credit for hardworking lower- and middle-income Montanans… Our proposed tax cut provides more than $850 million in permanent relief, a new record tax cut that benefits Montanans at every income level."
(Watch the full 2025 State of the State)
On property taxes, Gianforte told lawmakers he wanted legislation on his desk by mid-February to create a "homestead exemption," shifting tax rates to put a smaller share of the tax burden on Montana homeowners' primary residences.
"Rising property taxes fuel the affordability crisis that’s pinching homeowners across the country. We must do something about it," Gianforte said. "This reform is estimated to lower property taxes for Montana homeowners by 15% and for small businesses by 18%. It’s projected to directly reduce property taxes for more than 215,000 homeowners and more than 32,000 small businesses, as well as provide indirect relief to over 130,000 renters."
Rising property taxes became a major political issue in Montana over the last two years, after the state announced updated property assessments and many residents saw their home values spike. Critics have accused Gianforte and the Legislature of not doing enough to address property tax concerns. Gianforte has pushed back, pointing to the state's property tax rebates. On Monday night he again said local governments play a key role in determining property taxes and criticized the difference between property tax rates in a more liberal county like Missoula and a more conservative county like Flathead.
Gianforte also took aim at the judiciary and called for judicial reform. In his speech, he touted several bills passed by the 2023 Montana Legislature that he signed into law that were ultimately ruled unconstitutional or are currently being challenged in court such as Montana's ban on drag story hours and the state's ban on gender-affirming care for minors.
"Montanans have a right to know the values and principles of the judges they elect. Let’s bring light to this darkness. 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," said Gianforte.
Republicans saw a sweep in Montana's statewide partisan elections in 2024. Montanans were split on the two State Supreme Court races, electing conservative group-backed Chief Justice Cory Swanson and liberal group-backed Justice Katherine Bidegaray.
Gianforte noted he looks forward to working with President-elect Donald Trump once he assumes office on Jan. 20.
Gianforte called for a $100 million investment in increased teacher pay, $6.5 million for state prison guards, and a $7 million increase in the budget for Montana Highway Patrol troopers' pay, which drew strong applause from both Republicans and Democrats.
Gianforte pointed to the heroics of Trooper Amanda Villa, who received the Medal of Valor for her actions rescuing a DNRC crew from a helicopter crash, as one of the many reasons to increase funding to their budget.
"It’s men and women like Trooper Villa who protect our communities, and we need to pay them what they deserve," said Gianforte.
Gianforte did not specifically address one of the biggest questions of the 2025 session — whether Montana's Medicaid expansion should be renewed.
Following Governor Gianforte’s State of the State address - the Democrat minority in the Montana Legislature offered their traditional rebuttal. Senate Minority Whip Shane Morigeau of Missoula offered Democrats' response to the governor’s message in the Senate Chambers.
"“All of our proposals center around the need to make Montana affordable again," said Morigeau. "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 Democrats weren’t the only group to offer a response to the Governor’s address, with another vision coming from his own party. Republican members of the staunchly conservative Freedom Caucus, led by chairman Jerry Schillinger, R-Circle, held a press conference where they laid out their legislative priorities and highlighted similarities with the governor’s agenda and budget, but also some key differences.
"It’s easy for Republicans to be socially conservative, we typically all unite on that," noted Schillinger. "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. So that’s one of the things we have to work on this session.”
