Montana House District 55 - Legislative Update
July 1, 2025
By Representative Brad Barker (Montana House District 55)
“I, however, place economy among the first and most important of republican virtues, and public debt as the greatest of the dangers to be feared.” ~ Thomas Jefferson, 1816
Meeting with the Minneapolis Federal Reserve
Last week, I, along with Legislative Fiscal Division staff, met with representatives of the Minneapolis Federal Reserve, including Director of Research Dr. Andrea Raffo, to review the national and regional economic outlook. We discussed inflation trends, interest rate policy, and the broader implications of federal fiscal and trade decisions.
Dr. Raffo emphasized that while the U.S. economy remains relatively strong, housing costs remain elevated, and trade uncertainty continues to exert pressure. The Federal Open Market Committee is holding interest rates steady for now but remains cautious due to potential risks to both employment and inflation targets.
The meeting underscored the need for Montana to act prudently now, particularly in setting aside reserves and targeting long-term infrastructure investments, given the shifting federal landscape.
MARA Committee: Shaping Montana’s Long-Term Strategy
On Friday, June 27, I participated in the Modernization and Risk Analysis (MARA) Committee meeting, where we focused on how to best prepare for the 2027 biennium. The MARA process empowers lawmakers with high-quality data and forecasting tools to evaluate the long-term implications of policy decisions. You can also access those tools by going to the Fiscal tab and clicking “Interactive Tools” on the Montana Legislature website.
We reviewed demographic shifts, land use trends, and fiscal risks that will shape Montana over the next 20 years. We also discussed how to expand outreach and ensure other committees benefit from MARA’s models and insights.
This work is critical to making Montana not only fiscally sound today but prepared for the challenges of tomorrow.
Governor’s Vetoes Reinforce Fiscal Discipline
Montana’s commitment to fiscal restraint was further strengthened this week when Governor Gianforte issued key line-item vetoes, reducing the biennial general fund growth from under 2% to under 1% spread over two years. That is a remarkable feat considering inflation over the past two years.
One of the largest vetoed spending bills, Senate Bill (SB) 537, was unanimously supported by the Montana Freedom Caucus and would have created recurring annual spending that could have grown without restraint. I voted against passage of this bill.
Growth and Opportunity Fund: Investing in Montana’s Future
Importantly, we’ve protected long-term strategic investments. The Growth and Opportunity Fund established in this past session and signed into law by the Governor establishes a trust using volatile revenue (unanticipated surplus revenue). Interest revenue from that trust will shore up pension liabilities, critical infrastructure needs, and water storage solutions. This is critical to ensure Montana can navigate federal volatility and future needs with more confidence.
This balance between restraint and readiness is a hallmark of good stewardship. I remain committed to ensuring that our state government stays accountable, solvent, and focused on long-term prosperity.
Happy Independence Day to you and your family. Enjoy the blessings of liberty, and may your celebration be filled with gratitude, rest, and time with loved ones. Please email, text, or call with any questions or feedback. I am honored to serve you and remain committed to continuing to earn your trust.
