House committee approves interim study into federal funding changes for Montana Department of Transportation

The House Transportation Committee on Friday approved House Joint Resolution 70, authorizing an interim study of how federal funding changes could affect the Montana Department of Transportation. The committee voted 11-3 to advance the resolution to the full House.

Representative Denise Baum, sponsor of HJR 70, told the committee the study is necessary because of the agency’s funding mix. "60% of the funding for our MDT is through federal special revenue. 35% is state revenue, special revenue accounts, and 5% is proprietary," Baum said, arguing that any change in federal support "can be extremely impactful."

David Smith, executive director of the Montana Contractors Association, testified in support of the resolution, saying the study "will give some good direction for conversations that'll happen during the interim committee process." Smith urged lawmakers to move forward; he also noted it was "work zone safety day."

Director Chris Dorrington, appearing as an informational witness, described Montana as a net recipient under the current federal formula, saying, "We get about $3 back for every $1." He told the committee that, while formula funding has been stable, discretionary grant programs paused under the prior administration and later resumed, leaving Montana with "$600,000,000 plus in discretionary grants" that are active or in process. Dorrington cautioned that staffing reductions among federal partner offices have made coordination slower: he described fewer federal contacts available to answer questions.

Deputy Director Larry Flynn provided technical detail on how the money is used. "For our construction dollars, the ratio of federal to state varies depending on the type of project to the location. But we average about 87% federal to 13% state," Flynn said, and added that most maintenance activities are ineligible for federal funds and are paid with state dollars, producing an overall agency split of roughly 65% federal and 35% state.

Members asked how the interim process would operate and what triggers or action plans the Legislature might want if federal apportionments were reduced. Director Dorrington encouraged preparing contingency plans so lawmakers can act quickly if apportionments or discretionary programs decline, and members discussed using the interim committee to monitor developments and coordinate with MDT, the congressional delegation and industry groups.

Vice Chair Wirth moved the committee to a vote, saying the resolution has merit but questioning whether some of the work could be done without a formal study. The roll call produced 11 votes in favor and 3 against; the chair announced the motion passed and that HJR 70 will be forwarded to the House floor.

The committee closed the hearing and moved into executive action immediately after. The interim study directed by HJR 70 is intended to collect information about federal formula and discretionary funds, examine potential programmatic changes, and identify options to mitigate any reduction in federal support. The resolution does not itself change funding; it requests a study and reporting during the interim period.