Montana bill would provide funding for Big Sky Passenger Rail Authority

Montana bill would provide funding for Big Sky Passenger Rail Authority

By Trains Staff | March 28, 2025

| Last updated on August 6, 2025


Money for agency would come from tax on railcars

Logo of Big Sky Passenger Rail AuthorityHELENA, Mont. — Montana’s legislature is considering a bill that would use a tax on railroad cars to help provide funding for the organization seeking to revive passenger service on the former route of the North Coast Hiawatha.

House Bill 848, introduced by state Rep. Denise Baum (D-Billings) earlier this month, initially sought to direct 25% of the funds from a tax on rental vehicles to a “Big Sky Rail Account” for use by regional rail agencies in the state. It was subsequently amended to substitute the state’s railroad car tax for the rental-car tax.

Currently, the state has just one such rail agency: the Big Sky Passenger Rail Authority, which is working to restore service on the route last used by the North Coast Hiawatha in 1979. The Authority could use the funds for administration, providing matching funds for federal grants, and other purposes, the Terry Tribune reports.

The bill is currently being considered by the House Transportation Committee, which held a hearing on the legislation on March 26 but did not immediately take action.

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