Counties in Montana will receive $46.5 million in federal payments this year to cover a lack of property tax revenue coming from federal lands.
The payments are part of more than $644.8 million that will be distributed to 1,900 state and local governments this year. According to the Association of Montana Counties, this is the largest state payment in the PILT program’s history, a 7.5% increase over 2024.
The Payments in Lieu of Taxes, or PILT, funds are directed toward counties where large tracts of land are administered by federal government agencies and thereby cannot be taxed. Payments are calculated based on population and acreage of federally owned acreage, as well as additional revenue-sharing payments allocated to the municipality. The money helps local governments construct public schools and roads. It also helps fund police, firefighting, and search-and-rescue operations.
“The Trump administration is committed to empowering local communities and ensuring that the federal government is a strong partner, not an obstacle,” Secretary of the Interior Doug Burgum said in a department press release. “PILT payments support vital services that help rural counties and towns thrive, from public safety to infrastructure and education. We recognize that local governments are the backbone of our nation, and we will continue working to support their efforts to grow local economies and serve their citizens.”
Sixteen Montana counties are slated to receive more than $1 million in federal PILT for 2025.
Flathead County will receive the most —$4,001,549 — for its more than 2.4 million acres of federal land.
Ravalli and Lewis and Clark counties are each slated to receive more than $3.3 million; Missoula, Gallatin and Park counties will receive more than $2 million.
“PILT payments are essential for many of Montana’s rural counties, and they provide funding for essential services like emergency response and transportation. I’m proud to introduce this bipartisan bill to bring parity to the PILT program and ensure our rural and low-population counties are treated fairly,” Daines said in a press release at the time.
Daines has previously introduced similar legislation that has not made it through the lawmaking process
Since PILT payments began in 1977, the Interior Department has distributed more than $12.6 billion to states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands.
The Department collects more than $20.7 billion in revenue annually from commercial activities on public lands. A portion of those revenues is shared with states and counties. The balance is deposited into the U.S. Treasury, which in turn pays for a broad array of federal activities, including PILT payments.
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