Kalispell, Montana – Montana counties are set to receive a significant boost in federal funding after the release of nearly $54 million through the Payments in Lieu of Taxes program, commonly known as PILT. Western Montana Congressman Ryan Zinke announced that counties across the state will receive a combined $53,889,068 in 2026, representing an increase of more than $7.3 million compared to the previous year’s payments.
The funding is intended to help local governments offset lost property tax revenue resulting from large amounts of federally owned land within their borders. Montana contains millions of acres of national forests, national parks, wildlife refuges, and lands managed by the Bureau of Land Management. Because these lands are exempt from local property taxes, many counties face challenges generating the revenue needed to support essential public services.
As a member of the House Appropriations Committee and the Interior Appropriations Subcommittee, Zinke said he worked extensively to secure the funding.
“Public lands are meant to be managed by a multiple-use mandate that allows for public access for recreation, economic development, and conservation. But with years of declining timber sales and economic activity, the counties that host them have been forced to bear the financial burden of management and lost tax revenue,” said Zinke. “Western Montana is nearly 80% federal land. The counties cannot shoulder this burden alone. I fought nonstop to permanently and fully fund PILT and ensure full funding to counties to maintain roads, support law enforcement, fund emergency services, and keep property taxes affordable for local families.”
Funding supports critical local services
State and local leaders have long emphasized the importance of PILT funding in Montana. Counties rely on these payments to maintain roads, support law enforcement agencies, operate emergency response systems, improve infrastructure, and help fund schools and other public services.
The increased funding arrives at a time when many rural counties continue to face rising costs associated with public safety, road maintenance, and infrastructure improvements. For many communities, PILT funding provides a dependable source of revenue that helps balance local budgets without placing additional burdens on taxpayers.
Montana’s vast federal land holdings play a major role in the state’s economy through recreation, tourism, conservation, and natural resource activities. However, those same federal lands reduce the amount of taxable property available to county governments.
Supporters of the program argue that PILT helps ensure the federal government remains a reliable partner to communities that host large areas of public land.
Largest payments go to counties with extensive federal lands
Several Montana counties received multimillion-dollar allocations due to the significant amount of federal land within their boundaries.
Flathead County received the largest payment in the state at $4,429,427, supported by more than 2.44 million acres of qualifying federal land. Ravalli County followed with $3,936,671, while Lewis and Clark County received $3,751,528.
Missoula County was awarded $3,238,613, Gallatin County received $2,512,915, and Park County collected $2,352,684. Lincoln County received $2,182,126, while Beaverhead County secured $1,580,526.
Other counties receiving substantial payments included Sanders County at $1,728,498, Fergus County at $1,701,635, Carbon County at $1,640,842, Madison County at $1,603,442, and Valley County at $1,447,577.
Among smaller allocations, Daniels County received $698, Sheridan County collected $907, and Treasure County received $381. Roosevelt County received $2,183, while Wibaux County was awarded $13,757.
The funding covers a total of 27.5 million acres of federal land spread across Montana counties.
Rural communities see benefits
Many of the counties receiving PILT funds are rural communities where large federal land holdings make up a substantial portion of the landscape. In some areas, federal lands account for hundreds of thousands or even millions of acres.
County governments often depend on PILT funding to keep roads maintained, provide sheriff’s office services, support volunteer and professional emergency responders, and maintain public infrastructure that residents rely on every day.
The more than $53.8 million distributed this year represents one of the largest PILT allocations Montana has received. Local officials are expected to use the funding to address ongoing needs while helping offset the financial limitations created by tax-exempt federal land ownership.
For many Montana counties, the payments serve as a vital connection between federal land management and local government operations, helping ensure communities can continue providing essential services while preserving access to the public lands that define much of the state’s landscape and economy.
