Butte-Silver Bow Levies Tax Against Property Owners to Cover SNAP as Democrats Block Federal Funding

BUTTE — The City-County of Butte-Silver Bow has declared a local emergency and imposed a 2-mill property tax levy on residents to fund food assistance programs after congressional Democrats refused to pass a government funding resolution, forcing property owners to bear the cost of a federal political standoff.

Chief Executive J.P. Gallagher signed the emergency proclamation Wednesday, authorizing the $183,974 tax levy to address what officials called “immediate peril” from the loss of Supplemental Nutrition Assistance Program (SNAP) benefits. The emergency declaration invokes powers typically reserved for natural disasters to tax property owners for a manufactured political crisis in Washington.

“This loss of SNAP benefits has created immediate peril to the health, safety, and welfare of vulnerable residents,” the proclamation states, justifying the emergency taxation under Montana Code Annotated § 10-3-405.

The 2-mill levy will be assessed against all taxable property in Butte-Silver Bow County for the 2025-2026 tax year, with proceeds placed in a separate “Emergency Fund.” The proclamation contains no provision for reimbursing property owners when the federal funding dispute resolves or for dissolving the millage once SNAP benefits resume.

The federal government shutdown has reduced November SNAP benefits to 50% of normal amounts due to limited funding and court orders, affecting approximately 77,000 Montanans who receive the federal nutrition assistance. Montana is among 14 states that have not implemented measures to support SNAP recipients during the funding lapse.

Governor Greg Gianforte has resisted to use state funds to cover SNAP benefits, stating “the state cannot fund this federal program without promises for reimbursement.” His office has blamed Democratic senators for the shutdown, with Gianforte saying “simply six senators have to do their job” and referring to the “Schumer Shutdown.”

The Butte-Silver Bow Council of Commissioners passed the corresponding emergency resolution 11-0 Wednesday night, making the county the first Montana jurisdiction to use emergency taxation powers to address the federal funding gap.

“Butte has gone through tough times, and people step up,” Gallagher told the Daily Montanan^1. “If the state and federal government aren’t going to step in, we’re going to do what we can with the resources we have.”

However, those “resources” come directly from property owners who had no voice in the decision and may not benefit from SNAP programs themselves. The emergency proclamation bypasses normal budget processes and public input that typically accompany tax increases.

Gallagher said the county plans to support non-profits and local organizations rather than pay benefits directly to families, arguing that even if federal funding is restored, “SNAP benefits wouldn’t get to families in time.”

The emergency declaration could set a precedent for other Montana counties to impose similar taxes on property owners to address federal funding disputes. In 2023, Montana retailers redeemed $182.5 million in SNAP benefits, suggesting the potential scope of taxpayer liability if other jurisdictions follow suit.

State health officials expect partial SNAP payments to resume “throughout next week and potentially into the week of Nov. 17,” meaning property owners may be permanently taxed to address what could be a temporary federal funding disruption.

The proclamation remains in effect until Gallagher determines “emergency conditions no longer exist,” giving the chief executive sole authority to decide when property owners are no longer liable for federal program funding.