A new report showed Montana receives a larger share of federal funding than the national average and the effects of continued cuts could be "dramatic."
For every dollar Montana contributes in federal taxes, the state receives $1.40 in return, according to the Montana Nonprofit Association report. In 2024, it totaled more than $14 billion disbursed, a number trending down in 2025 as President Donald Trump and Elon Musk make more cuts in the name of government efficiency.
Adam Jespersen, executive director of the Montana Nonprofit Association, warned "even microreductions would have dramatic impacts."
"We're all for eliminating waste, fraud, and abuse," Jespersen acknowledged. "But those conversations need to be had with care, with planful action and with communication around the 'what' and the 'why' and the 'how.'"
Federal funds reach Montanans through federal jobs, nonprofits, social programs and state and local government revenue, as well as the services they provide. It includes aid to schools, farms, housing, infrastructure, health care and more.
There are more than 650 nonprofits in Montana employing more than 60,000 people, or nearly 12% of the state's workforce. Among those organizations, 64% would be in financial peril without government funds, according to the report. Jespersen called the early cuts a "canary in the coal mine."
"Because those impacts are de minimis compared to other impacts that may come from cuts to social security, to Medicaid, to education, to local government, things like that," Jespersen explained.
Cuts could affect rural Montana in more ways, as 89% of Montana counties are more reliant on Social Security and veterans benefits than the national average, as are 86% of counties on Medicare.
In line with tribal treaty rights, 58% of revenue to tribal governments in Montana came from federal funding between 2003 and 2009.
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Optimism among small businesses in Wyoming and the U.S. is hitting lows comparable to early pandemic days, largely due to changing tariff policies.
A National Federation of Independent Business index shows only 18% of business owners are planning to invest in long-term assets in the next six months - down three points from March and at levels last seen in April 2020 during the COVID-19 pandemic.
President Donald Trump has made about 50 announcements on new or changed tariff policies since taking office.
Dilawar Syed, former deputy administrator of the U.S. Small Business Administration, said on a Center for American Progress panel Monday that businesses need certainty.
"Two-thirds of the 35 million small businesses import," he said. "And 97% of all exporters are small businesses. So folks may not think of small businesses being at the front end of the trade policy impact. They are at the tip of the spear."
Nearly all Wyoming businesses are considered small by the U.S. Small Business Administration. According to a 2024 report, they employed over 65% of Wyoming workers, or about 130,000 people.
Other federal laws could impact businesses. The Republican congressional budget currently in the works would end tax credits from the Affordable Care Act that support health insurance for one-fifth of small business owners, or 4.2 million people. Cuts to the Supplemental Nutrition Assistance Program or SNAP would hurt those in food business, including Amerisal Foods owner Vanessa Faggiolly.
"My margins are already so thin that just trying to absorb that 10% just completely kills me. We can't just get these increases and pass it onto the consumer right away," Faggiolly said. "It's going to take time. If we survive, it's going to take some time."
Trump has cut 43% of the staff at the Small Business Administration and at other agencies that assist businesses, including the Department of Agriculture and the Commerce and Treasury Departments.
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A new report highlights record-breaking investments in the Appalachian region, driven largely by federal climate and infrastructure funding over the past few years.
However, Congress is considering a budget reconciliation bill that could cut funding and put a damper on union jobs and private investment.
Dana Kuhnline, program director for the coalition ReImagine Appalachia, said funds included in the Inflation Reduction Act and Infrastructure Investment and Jobs Act could be lost.
"One of the reasons that's so harmful for our region is that a huge percentage of the Inflation Reduction Act was targeted with special provisions for communities that had seen a downturn from manufacturing and other industry loss, to try and build those industries back up," Kuhnline explained.
According to data from the Center for American Progress, Ohio has seen a record $11 billion in investments and created more than 4,700 jobs since the Inflation Reduction Act passed in 2021.
Rike Rothenstein, senior research associate for ReImagine Appalachia, said Ohio leads four Appalachian states with a total of $40 billion in public and private investments. She noted federal money helped spur economic growth and drove companies to the region.
"It is really the private investment that was significantly responsible for that renaissance," Rothenstein emphasized. "For that push and strengthening of U.S. manufacturing in the region."
The report shows federal investments in clean energy manufacturing and transportation technologies totaled about $128 billion between 2022 and 2024.
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The dismantling of the 30-year-old AmeriCorps national service program by the Department of Government Efficiency will have significant effects in New Mexico.
Last year, AmeriCorps recruited more than 4,500 participants in the state to help meet local needs and strengthen communities. Program grants are administered by the Serve New Mexico Commission, working under the Department of Workforce Solutions.
Kristin Hsueh, executive director of the commission, said funding was eliminated for a planning grant and six of 10 operational programs, leaving only four still functioning.
"These program were offering services to the communities, everything from tutoring to after-school programming, mentorship, trail restoration," Hsueh outlined. "It's a significant cut, it's almost about two-thirds of our programs."
New Mexico has joined 24 states and the District of Columbia in a lawsuit suing over the Trump administration's cuts. The state's Attorney General said the action will hurt students, families and underserved communities. In New Mexico, a fourth of all AmeriCorps workers identify as Hispanic or Latino, the highest percentage in the nation.
Hsueh pointed out at least 84 AmeriCorps members in New Mexico were affected immediately, and 100 who were expected to participate this summer have been notified their positions have been defunded. She noted members and senior volunteers have previously served at more than 300 locations across the state.
"They are gaining a lot of experience," Hsueh observed. "They are serving something that's greater than themselves, which is really what AmeriCorps is all about, dedicating a portion of your life to make sure that you are improving the lives of others."
Initially known as Volunteers in Service to America or VISTA, AmeriCorps was created by President Lyndon Johnson in 1965 and renamed under President Bill Clinton. Nationwide, more than 75,000 people work in service each year, with land trusts, schools, public agencies and community and faith-based groups. Funding made up less than 1% of the federal budget.
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