Gov. Greg Gianforte last week vetoed a bill that would divide revenues generated by adult-use marijuana sales between a variety of conservation, law enforcement, addiction treatment and homelessness support initiatives.
In a veto letter dated June 6, Gianforte argued that however well-intentioned, Senate Bill 537 amounts to a “brazen raid of more than $141 million from the General Fund over the next four years.”
“While putting the state on the hook for local government functions, Senate Bill 537 naturally grows state government at a time when we should be focused on right-sizing government, making it more efficient, more effective and leaner,” Gianforte wrote.
Sen. Daniel Zolnikov, R-Billings, told Montana Free Press he understands Gianforte’s reasoning, but is still disappointed in the veto of his proposal, which he had dubbed the “cops and conservation” bill.
“While putting the state on the hook for local government functions, Senate Bill 537 naturally grows state government at a time when we should be focused on right-sizing government, making it more efficient, more effective and leaner.”
Gov. Greg Gianforte
Zolnikov also expressed frustration with the 2025 Legislature’s political dynamics, which he suggested created the need for his bill, placing particular blame on nine moderate Republicans who voted in concert with Democrats on key issues. The Legislature “failed to do its job of prioritizing spending needs,” Zolnikov said.
“It is unfortunate that public safety and law enforcement will suffer because nine Republicans who gave the Democrats a ‘working majority’ in the Senate spent too much money, but I understand the governor has to make tough decisions as he has to veto his way to a balanced budget,” he continued. “It is too bad that he chose to veto money going toward law enforcement, rape kits, drug testing and [behavioral] health instead of vetoing a $900 million bill that established a trust fund for subsidizing child care and housing, amongst other new government programs.”
“It is too bad that he chose to veto money going toward law enforcement, rape kits, drug testing and [behavioral] health instead of vetoing a $900 million bill that established a trust fund for subsidizing child care and housing, amongst other new government programs.”
Senate Bill 537 sponsor Daniel Zolnikov
The $900 million proposal Zolnikov referenced, House Bill 924, sometimes referred to as the “mega trust bill,” also includes funding for water projects, the state pension system, bridge repairs and property tax credits for primary residences. It arrived on Gianforte’s desk Tuesday, more than a month after the Legislature adjourned.
Since more than two-thirds of state lawmakers voted to pass SB 537, the secretary of state will send out a poll to lawmakers giving them an opportunity to override the veto.
In a follow-up conversation with MTFP, Zolnikov said he’s not holding his breath for a reversal.
“It’s kind of hard to say, ‘No, we need to spend this money’ when we just overspent,” he said. “There have to be some pretty active groups to start supporting [a veto override], like local law enforcement agencies and whatnot. Unless they show up, I don’t see that happening.”
RELATED
Governor signs bill to shift marijuana tax revenues
Gov. Greg Gianforte’s office announced on May 16, 2025, that he had signed HB 932, which establishes a ‘habitat legacy account’ with marijuana tax revenue.
Last month Gianforte signed into law House Bill 932, a competing proposal sponsored by Rep. Ken Walsh, R-Twin Bridges. HB 932 resembles SB 537 in that it devotes one-third of marijuana tax revenues to fund conservation and wildlife habitat programs on private and public land. HB 932 differs in that it funnels most of the remainder into the state’s General Fund, which supports K-12 education, public health programs, correctional facilities and other government functions.
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