Montana Approves Rail Infrastructure Funding Through House Bill 848

Montana has enacted House Bill 848, a legislative measure that creates a dedicated funding stream for regional rail infrastructure through the Big Sky Rail Account. The bill, which goes into effect on July 1, 2025, allocates up to $2 million annually from railroad car taxes to support the operation and expansion of rail services across the state.

The funds will be distributed by the Montana Department of Transportation to regional rail authorities formed before January 1, 2025. These funds are statutorily appropriated, meaning they do not require repeated legislative approval, ensuring consistent support through 2031.

Under the new law, rail authorities can use the funds for a broad range of purposes, including:

• Planning, designing, developing, and operating passenger and freight rail projects
• Enhancing safety and connectivity between rail and other transportation modes like airports, roads, and transit systems
• Constructing or improving train stations and nearby rental car or transit facilities
• Forming partnerships with federal agencies, other states, and Canadian provinces to support long-distance rail services
• Developing energy infrastructure that supports rail and transportation needs

The legislation also allows the funds to be used for administrative costs and matching grants, providing local authorities with the flexibility to pursue federal or private sector funding opportunities.

House Bill 848 is set to sunset on June 30, 2031, giving the state six years to evaluate the impact of this investment in rail infrastructure. The initiative represents a strategic move to modernize Montana’s transportation system, reduce highway congestion, and support regional economic development through improved mobility.