The proposed bill establishes a grant program aimed at increasing community shelter capacity to support the homeless population in Montana. It mandates the Department of Commerce to provide state matching funds at a one-to-one ratio to eligible applicants, which include local governments and nonprofit organizations. The bill specifies the categories of individuals who may benefit from these funds, including those with mental health needs, homeless families with children, senior citizens, veterans, survivors of domestic violence, and youth transitioning out of foster care. The application process will utilize a 1,000-point weighted scoring system to prioritize projects based on geographic diversity, applicant capacity, financial feasibility, community need, and potential impact.

Additionally, the bill appropriates $2 million from the general fund for the biennium beginning July 1, 2025, to support the grant program, with any unencumbered funds reverting to the general fund by June 30, 2027. The Department of Commerce is tasked with adopting rules for the application process and grant criteria, and it must report the results of the program to the Economic Affairs interim committee by August 30, 2026. The bill also includes provisions for codification and specifies an effective date of July 1, 2025, with a termination date of June 30, 2027.