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Commerce briefs Senate local government committee on tourism, bed-tax-funded grants and housing programs
Summary
Deputy Director Mandy Rambo told the committee Commerce distributed $24 million through a tourism revolving loan fund, operates a $2.75 million pilot communities program, outlined bed-tax allocations (about 52% to communities, >17% to tourism regions), and noted housing ARPA/HAF support and a bill to expand MFFA authority.
Deputy Director Mandy Rambo of the Montana Department of Commerce told the Senate Local Government Committee that Commerce is focusing on programs to sustain communities and to support tourism-driven economies.
Rambo summarized 2025 biennium accomplishments and programs enacted after the 2023 legislature, including the State Local Infrastructure Partnership Act (SLIP), the Emergency Shelter Facilities Grant program, and seven bed-tax-funded programs. "We were able to distribute $24,000,000 out to local economic development organizations," she said, describing the tourism revolving loan fund as intended to be deployed through local economic development organizations rather than centrally by state staff.
She described a $2,750,000 Pilot Communities program (seven communities awarded in the first round, one from each tourism region plus one tribal community) and a regional assistance program aimed at destination marketing organizations (CVBs/DMOs) and tourism regions that lack large local collections. Rambo described changes to events grants to encourage self-sustaining events (three-year staggered grants) and the Montana Emergency Tourism Assistance Program (METAP) that funds emergency vehicles and equipment for tourism-impacted rural communities.
Rambo also discussed new agritourism grants and the Montana film grant (Big Sky film program), noting that Senate Bill 540 passed last year renewed focus on in-state film production and hiring Montanans for film projects. On the bed tax, she said roughly 52% of receipts are returned to communities via grants and loans, more than 17% goes to tourism regions and DMOs (about 70% total returned to communities), and less than 20% is used for marketing directed at drive markets and in-state audiences.
Rambo flagged housing programs within Commerce's Housing MT division, noting the Homeowner Assistance Fund (HAF), an ARPA-funded program, remains active with eligibility through 2026 and is expected to be fully expended this calendar year. She also listed attached boards and commissions and noted an upcoming bill to expand the Montana Facility Finance Authority's project eligibility, which Senator Lammers is expected to carry.
Rambo closed by offering to provide additional materials and contact information to committee members.
