Federal government funding is a “cornerstone” of Montana’s economy, according to a recent report from Headwaters Economics. The report analyzes the effect of potential cuts to the federal workforce amid reduction under the Trump Administration.
The federal government steered more than $14 billion to Montana last year, according to the report. Kristin Smith is an analyst for Headwaters Economics. She says those federal dollars are essential for the state government, and economy to function.
"Federal investments really are force multipliers. They are important for helping our local governments, our businesses, our nonprofits and many of our economic sectors really run and function and deliver essential services they just couldn't afford to do alone."
The Montana Nonprofit Association commissioned the study and it focuses on the state’s nonprofit sector. Nonprofits in the state receive over $130 million a year on average in federal grants. Smith says that would be a tough void for private donors to fill if the government pulls the plug.
The report finds nearly two thirds of Montana’s nonprofits would be at risk of shutting down if they lost federal support. Nonprofits employ 60,000 workers in Montana.
