Montana's House Bill 6 is making waves as it aims to secure funding for critical infrastructure improvements across local governments. Introduced on March 19, 2025, the bill mandates that local governments establish a capital reserve account to qualify for grant funding, specifically targeting enhancements to water supply systems, wastewater systems, irrigation systems, and large water storage dams.

The bill's key provision requires local governments to deposit a minimum of 10% of their revenues from water-related fees into this reserve account. Alternatively, owners of qualifying water storage dams must contribute $5 per acre-foot of water storage capacity. This financial framework is designed to ensure that local entities are not only recipients of state funds but also actively invest in their infrastructure sustainability.

Debate surrounding House Bill 6 has intensified, with proponents arguing that it addresses long-standing issues of aging water infrastructure and promotes fiscal responsibility among local governments. Critics, however, express concerns about the potential financial burden on smaller municipalities that may struggle to meet the new requirements, fearing it could limit their access to essential funding.

The implications of this bill are significant. If passed, it could lead to improved water management and infrastructure resilience in Montana, particularly in rural areas where such systems are often underfunded. However, the requirement for local governments to maintain a capital reserve account raises questions about the feasibility for smaller jurisdictions, potentially widening the gap between well-funded and under-resourced communities.

As the legislative session progresses, stakeholders are closely monitoring the bill's trajectory, with discussions expected to continue around its economic and social impacts. The outcome of House Bill 6 could set a precedent for how Montana addresses its infrastructure challenges in the years to come.