“When, Where and How Benefits Accrue Locally”: GOP Senate Candidate Faces Scrutiny Over Failed Jobs Promise in Montana

Tim Sheehy, a Republican Senate candidate running on his private sector experience, is under scrutiny for a business deal that failed to deliver on promises made to Montanans. Sheehy, who is challenging Sen. Jon Tester (D-MT) in a highly competitive Senate race, is facing criticism after jobs his company pledged to create in Gallatin County have yet to materialize, despite significant financial backing from the local government.

According to an NBC News report on Tuesday, Sheehy’s aerial firefighting company, Bridger Aerospace Group, convinced Gallatin County commissioners in 2020 to use the county’s credit rating to raise $160 million through a bond issue. The funds were intended to support the company’s expansion and bring jobs to the area, a key selling point in winning over local leaders.

Bridger’s executives successfully persuaded the commissioners, who voted unanimously in favor of the proposal. However, four years later, the promises of economic growth and job creation have not been fulfilled. Instead, the bulk of the bond money — $134 million, or more than 83% — ended up benefiting the New York-based private equity firm Blackstone Group in 2022.

Broken Promises and Financial Struggles

While Bridger Aerospace pledged to build two new hangars in Gallatin County as part of the deal, only one has been constructed. More troubling for the local economy, the company’s workforce has actually shrunk rather than expanded as promised. This raises questions about the impact of using public resources to support private business ventures.

University of Chicago public policy professor Justin Marlowe commented on the situation, saying, “When, where, and how benefits accrue locally when local governments support these types of business ventures is exactly the right question to ask. If the project fails, it sends a signal about the future of that jurisdiction.”

Bridger Aerospace has struggled financially since receiving the $160 million bond in 2022. The company has lost approximately $150 million since then, including $20 million in the first quarter of 2024 alone, and $77.4 million in total losses for 2023. Its stock price has plummeted, now sitting at $3.60 per share — a 64% drop from its initial public offering in 2023.

An independent auditor’s report cited by NBC suggested that Bridger may not survive another year at its current rate of losses. While the conditions of the bond issue do not place the financial burden on Gallatin County if Bridger goes bankrupt, the county’s credit rating could still be at risk.

Sheehy’s Compensation Amid Company Struggles

Despite the company’s poor financial performance, Sheehy has continued to receive substantial compensation as its CEO. In 2023, while Bridger was losing tens of millions of dollars, Sheehy was paid a base salary of $149,000 and received a $2.3 million bonus. In 2022, during which the company lost $42.1 million, he was paid a base salary of $450,000 along with a $4.4 million bonus. These revelations have raised concerns among voters about Sheehy’s leadership and the effectiveness of his business acumen, which he touts as a key reason to elect him to the Senate.

Election Implications

Despite the growing scrutiny, Sheehy is currently polling ahead of Tester by as many as eight percentage points, according to data from FiveThirtyEight. His lead in the polls makes the race crucial for both parties, as Republicans need to flip either Montana or Ohio to regain control of the Senate. If Sheehy wins, it would significantly hinder Democrats’ chances of retaining their slim majority in the chamber.

However, the Democratic Party still holds hope of maintaining control by targeting Senate seats in Florida, Nebraska, or Texas, all of which have shown competitive polling in recent weeks. With these new revelations about Sheehy’s business practices, the Montana Senate race has become even more contentious, as voters weigh the promises of economic growth against the realities of financial mismanagement and unmet commitments to the community.