Montana Town Faces Economic Strain from Federal Worker Cuts

HAMILTON, Mont. — A small town in southwestern Montana is grappling with the fallout from federal worker cuts that threaten its local economy. Hamilton, home to Rocky Mountain Laboratories, has seen layoffs and funding reductions that could reshape its future.

Once a quiet community of 5,000, Hamilton has been economically driven by the laboratory, a National Institutes of Health facility known for its biomedical research. Scientists at Rocky Mountain Labs conduct vital research, contributing millions to the local economy through retail and related industries.

However, the recent federal restructuring under the Trump administration has led to mass layoffs, with 41 researchers already let go or facing contract terminations. This has fueled protests, with residents rallying in downtown Hamilton against the cuts, holding signs that read, “Hands Off Federal Workers” and “STOP STRANGLING SCIENCE.”

Kim Hasenkrug, a former Rocky Mountain Labs researcher, criticized the government’s cuts, stating, “These cuts will not streamline research. They will throttle it.” Amid funding reductions, at least $29 million in research grants have been removed from Montana recipients, according to data from the Department of Health and Human Services.

City leaders have voiced their concerns, highlighting Hamilton’s reliance on federal employment. City Councilor Darwin Ernst noted a growing number of homes for sale, indicating the uncertainty as workers leave the area. Residents like Jane Shigley worry about their community’s future and its ability to recover.

Despite the challenges, some still believe in Hamilton’s resilience. Julie Foster, executive director of a local nonprofit, is optimistic the labs will endure. “There may be bumps in the road, but this is a resilient place,” she said.

As scientists continue to conduct their research, they are facing operational challenges due to cuts and changes in how they secure necessary supplies. The Department of Health and Human Services has not provided further details on ongoing cuts, and local leaders await more guidance.

Hamilton remains a key example of how federal policy changes can ripple through small communities, affecting the lives and livelihoods of its residents.