House Bill No. introduced by M. Nikolakakos and others establishes a grant program aimed at increasing community shelter capacity for the homeless population in Montana. The bill outlines that the Department of Commerce will provide state matching grants at a one-to-one ratio to eligible applicants, which include local governments and nonprofit organizations. The grants will prioritize projects that serve specific vulnerable groups, such as individuals with mental health needs, homeless families with children, 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 evaluate proposals based on geographic diversity, applicant capacity, financial feasibility, community need, and potential impact.

The bill appropriates $2 million from the general fund for the biennium beginning July 1, 2025, to support this initiative, with unencumbered funds reverting to the general fund by June 30, 2027. Additionally, the Department of Commerce is tasked with adopting rules for the application process and grant criteria, and it must report the results of the grant program to the Economic Affairs interim committee by August 30, 2026. The act is set to take effect on July 1, 2025, and will terminate on June 30, 2027.