The Montana Senate narrowly passed a bill on Jan. 22 that would redistribute federal highway funds to benefit smaller Montana cities and towns.

Senate Bill 111 was supported by the city of Columbia Falls and introduced by Sen. Dee Brown, R-Coram and Republican legislators from Glendive, Hamilton and Stevensville.

The bill would amend existing language so that “urban areas” with 5,000 residents would qualify for federal urban highway system funding. The current language applied only to cities with 5,000 residents within their incorporated city limits.

According to the bill’s fiscal note, SB111 would have minimal fiscal impact to local governments and would not affect state agency revenue or expenditures. Funding would become available for six more incorporated cities while funding would be reduced for the 16 urban areas that already qualified for the money.

Columbia Falls city manager Susan Nicosia told the city council on Jan. 22 that the greater Columbia Falls area clearly qualifies as an urban area with more than 5,000 people, most of whom buy gas in Columbia Falls.

She described arguments over the bill as a “small cities versus big cities” debate. She noted that Columbia Falls, Glendive and Hamilton would benefit, but she doubted the losses to big cities would reach half a million dollars, as some legislators had claimed.

The bill will go to the Montana House under a different number.