During the 2025 legislative session, Montana lawmakers are considering changes to the allocation of tax revenue generated from legal marijuana sales. A previous proposal aimed at redirecting funds from marijuana taxes away from conservation programs did not advance. Currently, two bills—House Bill 932 and Senate Bill 537—are under discussion, both of which propose to retain funding for conservation while expanding its intended uses.
Frank Szollosi, executive director of the Montana Wildlife Federation, noted, “Both bills contain innovative policies that will positively impact wildlife, fisheries, ranchers, and outdoor enthusiasts.”
On a recent Friday, the Senate passed House Bill 932 with a vote of 38-11, while the House approved Senate Bill 537 with a vote of 74-26. These bills will now be reviewed by the opposite chambers for further consideration.
Under the current setup, the first $6 million from marijuana tax revenue is allocated to the HEART Fund, which supports behavioral health services and substance use treatment. Additionally, 20% of the remaining revenue—approximately $10 million annually—supports the Habitat Montana program, dedicated to wildlife habitat improvement. Another 12% of the revenue, about $6 million, is divided between state parks, trails, recreational programs, and non-game wildlife initiatives.
Both HB 932 and SB 537 propose to maintain funding for parks and recreational programs while creating a new “Habitat Legacy Account” to manage the 20% allocated for Habitat Montana. This account would not only continue to finance habitat projects but would also allow for a broader range of conservation initiatives, including funding wildlife crossings over highways.
“This is policy innovation driven by science,” Szollosi emphasized. “It expands the scope of Montanans’ investment in habitat projects.”
The two bills have some differences. Senate Bill 537 directs a portion of marijuana tax revenue that typically goes to the state general fund towards supporting law enforcement and the behavioral health system. In contrast, House Bill 932 specifically earmarks some funds from the Habitat Legacy Account for state water projects.
Both bills have undergone amendments and will return to their respective chambers for final voting on the updated versions. If approved, the legislation will be sent to Governor Greg Gianforte for his signature. If not, a conference committee will negotiate the final language.
In a recent statement, Governor Gianforte expressed caution regarding the bills, particularly in terms of reallocating funds typically used to offset income taxes. “We’ll have to see what form the final bill comes in,” he stated, highlighting concerns about shifting funds away from tax relief.
Notably, Senate Bill 537 includes provisions that would render House Bill 932 ineffective if both measures progress through the legislative process.
With only eight working days remaining in the 2025 session, lawmakers will continue to deliberate on the allocation of marijuana tax revenue and its implications for both conservation efforts and state funding.
English 
Spanish 
German 
Czech