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Yes: 333 • No: 314
MaineLD 210132nd Maine Legislature (2025-2026)HouseWALLET
An Act Making Unified Appropriations and Allocations from the General Fund and Other Funds for the Expenditures of State Government and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2025, June 30, 2026 and June 30, 2027
Sponsored By: Drew Gattine (Democratic)
Became Law
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Bill Overview
Analyzed Economic Effects
131 provisions identified: 86 benefits, 21 costs, 24 mixed.
More MaineCare funding and higher lab pay
MaineCare gets $96.84 million (state) and $360.66 million (federal) in FY 2026‑27 to cover higher costs and enrollment. Lab services are paid at 72.4% of current Medicare rates (not 70% of 2009 rates). The state Medicaid agency must send any needed plan changes or waivers to federal CMS to align financing and payments.
More homes allowed on single lots
Towns must allow up to 2 homes on a lot with no house. In growth areas, or on lots with public water and sewer in towns without a plan, towns must allow up to 4 homes. On a lot with one home, owners can add up to 2 more units (attached or detached). Towns may allow even more.
No transfer tax for MSHA buyers
Beginning November 1, 2025, deeds are exempt from the state transfer tax when the buyer uses a Maine State Housing Authority first‑time home‑buyer mortgage. The exemption applies to both the buyer and the seller. This lowers closing costs.
Double child credit for under 6
For tax years starting January 1, 2025, the child credit for each child under age 6 is doubled. Families claiming young children get a larger Maine income tax credit.
New help for in-state trade
The state creates a domestic trade program to help small businesses. It funds one coordinator and provides $550,000 from the General Fund for program operations.
Property transfer tax on home sales
The state tax is $2.20 for each $500 of the property price. If the price is over $1,000,000, add $3.80 per $500 above $1,000,000. This tax is due when the deed transfers.
Retirement deduction cut for high earners
Starting January 1, 2025, the state retirement‑plan deduction phases down as income rises. The reduction equals the deduction times a fraction: (your federal AGI minus your threshold) divided by $100,000 (or $50,000 if married filing separately), capped at 1. Thresholds are: single $125,000; head of household $187,500; married joint $250,000; married separate $125,000. Thresholds are adjusted for inflation.
Refundable child credit with income limits
Starting with 2025 taxes, the child tax credit is refundable. The credit goes down by $20 for every $500 (or part) your Maine AGI is over a set limit. Limits: single $100,000; head of household $125,000; married filing jointly $150,000; married filing separately $75,000. The credit cannot be less than $0.
2026 sales tax overhaul on services
Starting January 1, 2026, the state expands what counts as a taxable service, including cable, satellite, telecommunications, ancillary services, digital video, and digital audio. It also updates the rules for where a sale is taxed and repeals an older sales chapter. At the same time, sales tax is removed for certain home medical items (durable medical equipment, breast pumps, mobility‑enhancing equipment) and for some business inputs (fabrication for resale and certain business telecom uses). Expect some services to be taxed for the first time while some items become tax‑free.
More help for children's health needs
The Lead Prevention Fund can pay for staff, contracts, blood tests, and short‑term moves to lead‑safe housing. Funding for Part C early intervention is aligned to available dollars. The Developmental Disabilities Council receives $519,535 in federal funds each year to meet needs.
More MaineCare funding for key services
MaineCare rates get cost-of-living increases on July 1, 2025 and January 1, 2026. The state keeps the new mobile crisis rates in place. Funding for psychiatric residential treatment continues. Starting January 1, 2025, the state annualizes support for nursing facility rate reforms.
3% raises for Maine judges
Judges and justices receive a 3% salary increase in the fiscal years starting July 1, 2025 and July 1, 2026.
Free community college scholarships continue
The state provides $10 million in 2025‑26 and $10 million in 2026‑27 to the seven community colleges. The money funds scholarships under Maine’s free community college tuition program. Eligible students can get tuition help during those years.
More money for preschool special education
By June 30, 2026, the State Controller transfers $21 million into the Preschool Special Education Program Fund. The law also provides a small one‑time $500 ARP allocation to Early Childhood Infrastructure. This adds resources to support young children with special needs and related services.
New training and apprenticeship support
The state creates the Targeted Workforce Investment Program. It funds pre‑apprenticeship, training, wraparound services, apprenticeship investments, and employer outreach in in‑demand fields. The Department of Labor can accept public or private funds into a nonlapsing account.
Pension boost for some public workers
If you are in member groups L, M, or R, you can buy service credit for past work no matter when you did it. If you are a paragraph R member who qualifies for service retirement, your pension is calculated using all your creditable service in that job, no matter when earned. Age‑related reductions still apply.
Teacher board‑pay and scholarships funded
Fees are credited each year to fully fund salary supplements for national board‑certified teachers. If fees fall short, the state’s general purpose aid covers the rest. Also, $75,000 per year from fees goes to the National Board Certification Scholarship Fund.
Stronger drought relief fund for farmers
The Farmers Drought Relief Fund is now nonlapsing. Money in the fund carries forward each year. The department can use balances to pay staff and contract for services to run the grants. This helps keep drought aid going for farms.
Lower excise taxes for cannabis growers
Beginning January 1, 2026, cultivation excise taxes drop. Flower is $223 per pound (was $335). Trim is $63 per pound (was $94). Immature plants are $1.00 each (was $1.50). Mature plants are $23 each (was $35). Seeds are $0.20 each (was $0.30).
More federal energy grants to Maine
The Governor’s Energy Office receives $12,028,590 in federal grant funds each year. This supports the office’s federally funded energy programs and activities.
Higher Medicaid pay at hospital clinics in 2027
Beginning July 1, 2027, MaineCare pays hospital‑based professional services at 160% of the Medicare rate. Providers use the applicable Medicare rate as the base for payment. This raises reimbursement for hospital‑based practices.
Medicaid savings to home care and system upgrades
Until June 30, 2026, DHHS can move 10% ARP federal match savings into Home and Community‑Based Services (provider and admin) accounts, with Budget Officer recommendation and the Governor’s approval. In fiscal years 2025‑26 and 2026‑27, DHHS can shift unspent General Fund balances to modernize the Medicaid Enterprise System. After required year‑end priorities for FY 2025, up to $24 million may be placed in the MaineCare Stabilization Fund. These steps keep MaineCare stable and help modernize how it runs.
More treatment funding in county jails
The state provides a one‑time $4 million General Fund payment in 2025‑26 for county jails. The money funds medical care and medication‑assisted treatment as required by law. This helps jails meet health care needs for people who are incarcerated.
Statewide walk-in crisis centers
DHHS must build and coordinate a statewide network of walk‑in crisis centers for mental health and substance use. Centers serve anyone, regardless of insurance or crisis level, for short‑term stabilization. DHHS plans locations, trains providers, works with law enforcement, and keeps improving the system.
Community Affairs office takes local and coastal programs
The Maine Office of Community Affairs (MOCA) becomes the successor to many local planning and coastal programs. Rules, contracts, records, and property carry over to MOCA, and workers keep their accrued leave. The law moves municipal planning money to MOCA: $179,789 from the General Fund and $577,978 in federal funds each year. It also moves coastal program funds: about $1,097,473 in 2025–26 and $1,097,508 in 2026–27 (federal), and $150,500 each year (special revenue). Several planning and coastal positions transfer into MOCA. The state updates a program assurance cross‑reference and repeals one older municipal section. The coastal safety agency must coordinate with local, state, and federal partners when it provides services.
Denser affordable housing with less parking
Affordable housing in zones that allow multifamily units can be at least 2.5 times denser. Towns cannot require more than 2 off‑street parking spaces per 3 units. Projects must be in growth areas or have public water and sewer and meet state lot size rules.
New housing funds and steady revenue
The state creates a Housing Production Fund on November 1, 2025 to support low‑income housing and homeownership programs. Starting in FY 2026‑27, remaining conveyance‑tax money is split monthly: 18% Housing First, 32% Housing Opportunities, 30% Housing Production, 20% General Fund. The Housing Production Fund gets $17,258,000 in FY 2026‑27. $3,000,000 in FY 2025‑26 helps preserve mobile home parks. Two Housing Opportunity Program staff positions become permanent.
More state tax money for towns
Beginning January 1, 2025, the State sends 5% of certain monthly tax receipts to the Local Government Fund by the 10th of each month. Of that, 20% goes to the Disproportionate Tax Burden Fund. This provides steadier monthly funding for municipalities.
Carry forward debt service funds in 2026-27
In each year of the 2026-27 biennium, the State Controller carries any remaining balance in the Treasurer's Debt Service program into the next year. This keeps debt service money available across years.
Extra payments for private psychiatric hospitals
The state makes temporary supplemental payments to private psychiatric hospitals. DHHS must use a CMS‑approved method and stay within the state appropriation and federal upper‑payment limits. One pool pays twice a year for incremental tax owed in 2025‑26 and 2026‑27, and another makes a one‑time payment in 2025‑26 for incremental tax owed in 2024‑25. These extra payments end when new reimbursement rates take effect, and the money shifts into direct reimbursement.
Lower MaineCare hospice pay and budget cut
MaineCare pays hospice providers 100% of the Medicare rate, down from 123%. The state also makes a one-time $24 million cut to Medical Care Payments to Providers in fiscal year 2026-27.
Residential supports revert to pre-COVID rules
Residential allowance rules for people with intellectual disabilities or autism return to pre‑COVID practices. This may reduce allowances or change placements for some MaineCare members under Section 21.
Higher sales tax on cannabis
On and after January 1, 2026, adult-use cannabis sales are taxed at 14% instead of 10%. For a $100 pre-tax purchase, tax is $14.
Higher tax on other tobacco
Starting January 5, 2026, other tobacco products are taxed at 75% of their cost price. The rate was 43% before. Prices or taxes on these products rise.
Higher tobacco taxes starting Jan 2026
Beginning January 5, 2026, the cigarette tax rises by $0.075 per cigarette ($1.50 more per 20‑pack). Smokeless tobacco is taxed $3.54 per ounce (prorated) for one‑ounce or larger packages, and $3.54 per package for smaller packages. Buyers pay these higher excise taxes at purchase.
Higher paint fee for lead safety
Beginning July 1, 2026, the paint fee rises to $0.75 per gallon, up from $0.25. Manufacturers or wholesalers pay the fee based on gallons sold. First payment is due October 1, 2026.
One-time cigarette inventory tax for retailers
Cigarettes held for resale on January 5, 2026 stamped at 100 mills owe extra tax. You must pay $0.075 per cigarette to reach the new 175 mills rate. Payment is due to the assessor by April 1, 2026, using state forms. You must add stamps to held packages (vending machine packs are excepted). Vending machines are presumed full for reporting, and credit applies for stock already stamped at 175 mills.
Less cannabis tax money for health and towns
Starting January 1, 2026, 9% of monthly adult-use cannabis sales and excise tax revenue goes to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund. This is down from 12%. The fund receives less money each month.
Budget corrections to grants and alcohol fund
Federal grant allocations are reduced for the Learning Systems Team by $3,000,969 in 2025-26 and $2,710,451 in 2026-27. ARP funds for the Maine Commission for Community Service fall by $2,864 each year. The State Alcoholic Beverage Fund All Other line is reduced by $180,049,407 in 2025-26 and 2026-27 to fix an accounting error.
State pays meal gaps if schools participate
The state pays schools the per‑meal difference so students can get free or lower‑cost breakfasts and lunches. For reduced breakfasts, schools get the federal free minus reduced rate. For full‑price meals, schools get the federal free minus full rate. Schools that do not join the National School Lunch Program or an eligible provisional program cannot get this state funding.
Pension changes for state mental health staff
Mental Health Worker I–IV employed by the state on October 1, 2025, or hired after, can join the 1998 Special Plan. Members pay 8.65% of pay until they reach 25 years of service, then 7.65% after. For the listed group, service retirement applies only if employed after September 30, 2025 and you are age 55 with at least 10 years, or you have 25 years of service. This expands pension access but also lowers take‑home pay while contributing.
New 340B reports and protections
Starting July 1, 2026, hospitals in the federal 340B drug program must file a yearly standard report with the Maine Health Data Organization, which posts it online. The law also bans drug makers from blocking 340B deliveries to contract pharmacies and stops payors and PBMs from paying less or imposing worse terms because of 340B status. Violations are enforceable under the Maine Unfair Trade Practices Act. These rules add transparency and protections while creating a new reporting duty.
More affordable housing funds and siting rules
Starting July 1, 2025, 25% of certain transfers to the housing fund must build or reuse homes affordable to low-income households. Beginning in fiscal year 2026-27, the law changes how real estate transfer tax money is allocated. The State limits growth-related capital investments to growth areas or listed exceptions. One exception allows small housing projects of 18 or fewer units for households at or below 80% of area median income if funded through MaineHousing; nursing homes are not included.
Stronger building codes and town rules
The state places the building codes board within Public Safety and MOCA to keep the Maine Uniform Building and Energy Code up to date, resolve code conflicts, and train local officials. A new Division of Building Codes supports the board, led by a certified technical codes coordinator who provides nonbinding code help and a public website. Towns may not employ code officers unless certified; non‑plumbing hires have 12 months to get certified, with limited waivers up to one year. To get certain state grants, a town must have a certified growth plan that includes a full facilities assessment, a reviewed 5‑year plan, and a cost and revenue analysis.
Assistive tech help for blind residents
The state creates three temporary Assistive Technology Specialist jobs to help people who are blind or visually impaired. These positions end June 19, 2027. The law also provides $200,000 for assistive devices and services.
State covers community college leave premiums
The state funds paid family and medical leave premiums for the seven community colleges. It provides $876,051 in 2025-26 and $915,865 in 2026-27. This helps keep leave coverage in place for those employees.
Climate Corps service and staffing updates
Service in the Maine Climate Corps is now an exempt type under unemployment rules. One Senior Planner job for the Climate Corps continues through June 19, 2027.
Inflation updates to tax exemptions
The law uses chained CPI to update certain tax amounts. It adjusts the personal exemption phase-out each year (starting in 2018). It raises the dependent exemption credit each year (starting in 2024, rounded down to the nearest $5). It also updates the income levels that phase out the dependent exemption each year (starting in 2025).
Aquaculture funds moved within agency
At the close of fiscal year 2024-25, the State Controller must move any remaining unspent balances from two Aquaculture Fund accounts to matching accounts in the Bureau of Public Health within Marine Resources. This is an internal transfer and does not pay households.
Aquatic access and habitat mapping support
The state adds small, steady funding for salmon habitat monitoring and marine vegetation mapping. It also supports clean-tech projects that cut costs and carbon. Two Environmental Specialists will help people and businesses with licensing and services.
Corrections software licensing funded
In 2026‑27, $1,200,000 funds ongoing licensing for the offender management system. This keeps critical corrections software running.
Corrections system upgrade and budget flexibility
The law pays $3,661,559 one time in 2025-26 to set up the offender management system. For 2025-26 and 2026-27, Corrections can move funds between lines to pay overtime. For those two years, leftover pay funds at Long Creek can move to other juvenile programs after salaries and benefits are covered. These transfer powers end June 30, 2027.
Courts can shift funds for services
For 2025-26 and 2026-27, the Judicial Department can move up to $750,000 each year from salary budgets to other costs after paying salaries and benefits. The money can pay temporary clerks, marshal contracts, guardians ad litem, interpreters, and mental health services.
Energy Office manager position extended
One limited‑period Public Service Coordinator II position at the Governor’s Energy Office continues through September 8, 2026. Federal funds pay related operating costs. This keeps leadership capacity in place for energy programs.
Family Independence manager extended
One limited‑period Family Independence Program Manager job continues through June 12, 2027. It is funded 50% from the General Fund and 50% from other special funds. This supports ongoing program administration.
Funding for safer state buildings
The state provides $52,000 each year in 2025‑26 and 2026‑27 for roof inspections and chiller work on three buildings. It also provides $400,000 each year to inventory state buildings for harmful substances and plan remediation.
Funds for controller training and legal fees
The State Controller’s Office gets $25,000 each year in 2025‑26 and 2026‑27 for staff training and tuition reimbursement. The state also sets aside $500 each year to pay court‑awarded or settled attorneys’ fees when insurance does not cover them.
Funds for the Governor's residence
The state provides $30,000 in 2026-27 for Blaine House operations. This pays for the governor’s residence costs that year.
Grants for school and community greenhouses
The law funds agriculture staff and one-time $500,000 grants in 2025-26 for durable greenhouses. Schools, community centers, and other public groups chosen by the Agriculture Department can apply.
Higher pay for death investigators
Nonsalaried medical examiners and medicolegal death investigators can be paid up to $150 per inspection (up from $100). They may receive an extra $50 for non‑hospital scenes. Travel is reimbursed at the state mileage rate.
Legislature returns balances to General Fund
The Legislature’s unspent personal services balances lapse to the General Fund surplus: $1,128,587 by June 30, 2026 and $1,152,225 by June 30, 2027. This increases available state resources.
More flexibility on state facility rules
The Bureau of General Services Director can waive certain standards when special location, program, or employee needs require it or to meet siting goals in law. Growth‑related capital and site‑selection rules apply to projects with funding applications accepted as complete after January 1, 2001, or initiated with the Bureau after that date. This clarifies when rules apply and allows needed waivers.
More funding for cannabis oversight
The state funds the adult‑use cannabis licensing and tracking systems and compliance checks. It provides $26,224 each year for system maintenance, $31,436 in 2025‑26 and $8,570 in 2026‑27 for compliance checks, and $102,633 in 2025‑26 and $153,950 in 2026‑27 for inventory tracking.
More help for unorganized territories
The state provides $500,000 in 2025‑26 and $500,000 in 2026‑27 to help cover county taxes and service costs in unorganized territories.
More land conservation funding
The Land for Maine's Future Trust Fund gets a one‑time $8,105,445 in 2025‑26 for land purchases.
More staff and access for outdoors
The law funds one-time replacement of vehicles and equipment for wildlife and fisheries work. It spends $575,000 (federal) and $265,000 (other funds) in 2025-26 to buy and improve boat launch sites. It adds a temporary Parks Maintenance Coordinator through June 18, 2027. It creates three biologist jobs and one Game Warden Sergeant.
More staff and tools for air quality
The state spends $117,000 one time to buy an optical gas imaging camera and $9,000 one time to train staff to use it. It creates two Environmental Licensing Specialist I jobs. One Environmental Specialist III position becomes permanent, and another ES III position is added. These steps boost monitoring and licensing capacity.
More support for Clean Elections
The law funds Clean Election payments administration with $4,760,693 in 2025-26 and $1,285,243 in 2026-27. It moves $3,000,000 to the Maine Clean Election Fund by July 1, 2026. It also creates a dedicated account so the commission can keep funding, including online payment surcharges, for its work.
New state accounting coordinator position
The law creates one full-time coordinator in the State Controller’s Office. The state budgets $135,420 in 2025-26 and $146,444 in 2026-27. The job helps apply new accounting standards and prepare the annual report.
New state jobs for facilities and benefits
A Space Management Specialist is created, funded at $97,255 in 2025‑26 and $104,780 in 2026‑27. A Building Control Specialist is created, funded at $83,266 in 2025‑26 and $89,229 in 2026‑27. One Public Service Coordinator I is reclassified from pay range 25 to 28. One limited‑period Public Service Manager II position continues through June 18, 2027. These changes support state building management and insurance program operations.
Resilience programs move under one office
The State Resilience Office now runs the Community Resilience Partnership, the floodplain management program, and the State Floodplain Mapping Fund. This centralizes management of climate and floodplain work.
Small boosts for environmental monitoring and tech
The state provides $5,000 each year for salmon habitat monitoring. It adds two Environmental Specialist III positions to help with licensing. It gives $499,500 each year to the Cost and Carbon Efficient Technology Fund. It also funds $14,000 each year for marine vegetation mapping.
State finance and leasing updates
The Real Property Lease fund gets $7,000,000 in 2025–26 and $7,000,000 in 2026–27 to support state leasing. Year‑end balances in two DAFS programs now carry forward to the next year. One office job is reclassified and funded by shifting money to Personal Services. Four ARP‑funded accounting jobs are made permanent and move to the Financial and Personnel Services Fund on January 1, 2027.
More funds for medical cannabis oversight
The program gets Other Special Revenue Funds to support operations. It adds $8,857 each year for the license system. It adds $93,898 in 2025-26 and $25,658 in 2026-27 for compliance checks and contract costs.
More legal help for low-income
The law gives a one-time $3,000,000 in 2025-26 to the Maine Civil Legal Services Fund. This expands free civil legal help for people who cannot afford a lawyer.
Corrections debt payments and added hours
In 2026-27, the state provides $2,000,000 to pay debt for corrections facility projects. It also increases one corrections Accounting Support Specialist from 60 to 80 hours biweekly, adding $19,009 in 2025-26 and $20,533 in 2026-27.
Energy office staffing and green grants
The law makes three Energy Office coordinator jobs permanent with federal funding. It also creates a revolving ‘Lead by Example’ grant program for state agencies. The program funds renewable energy projects, EV purchases, and chargers with $250,000 from special funds and $500 from federal funds.
Funding for state fleet and buildings
The state provides $3,605,179 each year in 2025-26 and 2026-27 for the Central Motor Pool. It also provides $2,250,000 in 2026-27 to pay principal and interest on state facility construction and renovation debt.
Funds for new offender tracking system
By June 30, 2026, the State Controller transfers $3,661,559 to the Department of Corrections. The money pays one‑time costs to implement the offender management computer system.
Lottery job reclassifications, no added cost
The law reclassifies two Lottery jobs and shifts funds into Personal Services to pay for them. According to the law, the net effect on the State Lottery Fund is $0.
More funding for state IT services
The state makes four project positions permanent and moves their funding from federal ARP to the Office of Information Services Fund. It adds $2,000,000 each year in 2025-26 and 2026-27 to cover expected IT costs.
More gear for oil-spill cleanup
The state buys new equipment to respond to spills and hazards. It funds a $600,000 skimmer boat, two sets of large booms and reels ($230,000 each year), and other tools like small skimmers, detectors, trailers, a forklift, and an outboard motor. By June 30, 2026, the State Controller also transfers $1,376,000 to the Ground and Surface Waters Clean‑up and Response Fund for capital needs. These one‑time purchases and funds improve spill containment, oil recovery, and decontamination work statewide.
More IT and finance staff positions
The law adds and continues several state jobs to support finance and technology. It creates new IT roles in the Office of Information Services. It adds a Purchases Division coordinator to handle public records and hearings. One applications manager is continued through June 19, 2027. Four accounting roles become permanent on January 1, 2027, and four new Security and Employment Service Center roles are funded at $391,109 in 2025‑26 and $420,253 in 2026‑27.
More staff and gear for cleanup
The state creates two environmental specialist jobs and continues three limited‑period Environmental Specialist III jobs through June 19, 2027. One Environmental Licensing Specialist II position is moved to the Maine Environmental Protection Fund program. The state buys gas detection units: $50,000 in 2025–26 and $50,000 in 2026–27. It also funds trucks and custom bodies for remediation work.
More wildfire gear and trail repairs
The state moves some forest protection jobs to General Fund pay and buys equipment. It provides $100,000 in 2025-26 for a wildfire engine and other capital and maintenance funds. It also provides $3 million in each of 2025-26 and 2026-27 to repair and improve trails, bridges, roads, and public recreation sites.
One-time money to fix state dams
By June 30, 2026, the State Controller transfers $1,250,000 to fix and build state dams. This one‑time funding supports public safety and water management across Maine.
Temporary staff to run 2026 elections
A limited‑period Planning and Research Assistant helps run the 2026 election cycle. The job runs January 1, 2026 through December 31, 2026 and is paid from Other Special Revenue Funds.
Upgrades to environmental agency staffing
The state reclassifies one Environmental Engineer to Environmental Engineer Specialist, retroactive to June 2024. It reorganizes one position to Chemist II using Other Special Revenue Funds. It increases one Environmental Specialist II from 78 to 80 hours biweekly.
More money for retiree health care
The retiree health insurance fund receives $17,235,498 in 2025‑26 and the same amount in 2026‑27. This supports paying retiree health costs; eligibility rules do not change.
Grants for community climate and coastal work
The Office runs the Community Resilience Partnership to give technical help and competitive grants for projects that cut emissions and boost resilience. The Office now leads the state coastal zone program and federal consistency reviews. It creates a state floodplain management program and a dedicated Floodplain Mapping Fund for LIDAR and mapping data. The Office can accept and spend federal and private funds and adopt routine rules to run these grants.
Help for town planning and growth
Towns and regions can request technical and financial help to make and carry out growth plans. For a town’s first planning and first implementation grant, the Office cannot require more than a 25% local match. Towns with climate action plans, and with vulnerability assessments for consistent plans, get grant priority. Encumbered grant balances can be used for two more years.
State pays towns for renewable energy exemptions
The state reimburses municipalities for property tax lost from renewable energy facility exemptions. It provides $2.75 million in 2025-26 and $4.25 million in 2026-27. Towns receive payments under existing reimbursement rules in Title 36.
Education staff reclassified and backdated
One Office Associate II is reclassified to Office Specialist II in the Learning Systems Team. Four Education Specialist III jobs are reclassified to State Education Representative, retroactive to June 13, 2024. The agency adjusts operating funds to pay for these changes.
Funds for unorganized territory schools and buses
The state provides $150,000 in 2025‑26 and $150,000 in 2026‑27 to maintain three state‑owned schools in the unorganized territory. It also provides $30,000 in each of those years to maintain the school bus fleet. These are one‑time General Fund appropriations for upkeep.
Funds to market state job openings
The law provides $12,000 in 2025-26 and $12,000 in 2026-27 for recruiting ads. The Administration Human Resources program uses the funds to promote state jobs. This raises awareness but does not change anyone's benefits or eligibility.
Maine Service Fellows moves to new office
Small funding amounts for Maine Service Fellows move each year: $500 federal and $500 other special funds. A limited‑period Volunteer Services Coordinator and the incumbent also move to the Maine Office of Community Affairs as of July 1, 2025, keeping accrued leave. This aligns the program and staff under the same office.
More hours at one CareerCenter
The law raises one CareerCenter consultant’s schedule from 27 to 80 hours every two weeks. The position counts as 0.5 in the fund and is paid with federal dollars. This likely adds capacity for job seeker services.
More labor hearings officers added
The law creates four Hearings Officer jobs starting January 1, 2026. It funds operating costs for these state positions.
More support for Head Start and after-school
The law updates small federal allocations to match funding. Head Start Collaboration gets $6,291 in 2025‑26 and $1,763 in 2026‑27. After‑school Community Learning Centers get $569,635 in 2025‑26 and $566,941 in 2026‑27. These adjustments help keep services running.
Small changes to education admin and staffing
The state makes one Education Specialist III and one Public Service Manager II positions permanent and adds a new Public Service Coordinator I, funded by shifting existing line items. It adds $500 per year in federal funds and $500 per year in other special funds to Innovative Teaching and Learning, and $2,000 ARP funds to the Learning Systems Team. Each year, certain fees also pay the state’s dues to the New England Board of Higher Education.
Economic development and tourism staff extended
One Public Executive I job in economic development and one CDBG coordinator job continue through June 19, 2027. Two tourism coordinator jobs continue through December 19, 2026 and use ARP federal funds.
Grants for community greenhouse projects
The state creates a separate, interest-bearing account for a community greenhouse program. By June 30, 2026, $500,000 is transferred for one-time grants to build durable greenhouses and cover siting and installation. The Agriculture Department will choose eligible recipients.
Tax office updates staff and systems
The state funds two tax staff reclassifications to strengthen administration. It also pays one‑time programming costs in 2025‑26: $31,800 to update the dependent exemption credit and phase‑out, and $79,500 to code changes for real estate transfer tax and its distribution. These updates help apply the new tax rules.
One‑time transfers to state funds
On or before June 30, 2026, the State Controller transfers $7,178,388 in ARP interest earnings to the General Fund. The state must also seek Mackworth Island causeway repair reimbursements from risk management, MEMA, and FEMA. Any reimbursements go into the Capital Construction and Improvement Reserve Fund for repairs to state buildings.
Higher hunting and fishing license fees
Resident combination hunting and fishing licenses now cost $48 (up from $43). Nonresident combination licenses cost $169 (up from $150). Super pack licenses are $212 for residents and $187 for those with 2+ lifetime licenses.
New 4c plan review surcharge
A 4 cent per square foot surcharge is added to plan review fees. Public school renovation plan review fees cannot exceed $450. Money goes to a new building codes fund.
Higher cap on business license fees
The maximum annual fee for an original or renewal license rises from $75 to $180. That is up to $105 more per license each year. Businesses may be charged up to the new cap.
New licensing fee ranges, 2-year terms
License application fees must be $100 to $280. Full licenses last 2 years, with biennial renewals of $70 to $170. Processing fees apply for adding a service site ($35 to $70), adding a service ($70 to $140), and reissues (up to $10). Electronic renewal fees are $25 to $50. The department will set rules.
Smaller discount on cigarette stamps
Starting January 5, 2026, the purchaser discount on cigarette tax stamps at the 175-mills face value falls from 1.15% to 0.66%. Retailers and distributors get less up-front savings when buying stamps.
Cuts to workforce and learning grants
The law reduces federal funding for two programs. It cuts $519,860 each year from the Learning Systems Team after a grant ended. It also cuts $3,993,260 in 2025-26 and $3,993,260 in 2026-27 from Trade Allowances. Programs may scale back services; it does not change household eligibility rules.
Higher attrition target for 2026–2027
The budget sets a 6% attrition rate for judicial and executive branch agencies in 2026–2027. After that, the standard attrition rate is 1.6%.
Higher provider tax on hospitals
Beginning January 1, 2025, most hospitals pay a 3.25% provider tax on their audited 2022 net operating revenue. Critical access hospitals and the Riverview and Dorothea Dix psychiatric centers are exempt.
Higher tax on private psychiatric hospitals
Private psychiatric hospitals pay a higher provider tax. The rate rises from 2.23% to 3.25%, effective January 1, 2025.
Psych hospital tax due soon, retroactive
Private psychiatric hospitals (not Riverview or Dorothea Dix) must pay by May 15, 2025 an amount equal to one‑half of 3.25% of their fiscal‑year‑2022 net operating revenue. Any amounts paid since January 1, 2025 are credited. A final return and payment is due by the 30th day after this part takes effect. These hospital tax changes apply retroactive to January 1, 2025.
New rules for workers' comp appeals
The Workers’ Compensation Commission can take over or transfer claims now at the Division of Administrative Hearings. A quorum of commissioners may hear cases, request more evidence, and allow further appeals. The commission must notify parties of decisions promptly. This changes how some appeals are handled.
Tougher tax enforcement, shorter disclosure window
The State Tax Assessor, through the Attorney General, may ask court to stop a business that fails to register, ignores overdue filings after 15 days’ notice, does not pay, files false returns, or fails to withhold. The assessor may disclose whether someone held certain resale/exemption certificates only for the prior 6 years. A tax section, 36 M.R.S.A. §4365‑F, is repealed on January 5, 2026.
Changes to marine research and fish laws
The marine research fund can only support broadly useful research and cannot pay for research for a single company. Three marine statute sections are repealed (12 MRSA §408, §409, and §6052 sub‑§6). These changes limit firm‑specific subsidies while cleaning up older laws.
Cleanup repeals in planning statutes
The law repeals 5 MRSA §3109, 5 MRSA §13056‑J, and 30‑A chapter 187, subchapter 2, article 3‑A. These sections are removed from statute. Any practical effects depend on what those sections had covered.
Corrections fees and funding adjustments
The Chief Medical Examiner can set special fees only for unusual cases and cannot charge for standard blood, urine, or vitreous collection. Up to $250,000 per year from federal prisoner‑care contracts goes to client welfare accounts; amounts above that go to the General Fund. From July 1 to December 1 each year in 2026–2027, the State Budget Officer makes Corrections position and balance transfers by financial order. Bigger changes after December 1 that affect programs or closures must be reported to the Legislature first.
State can finance fleet, radios, IT
For 2025-26 and 2026-27, the state may borrow up to $13,500,000 each year for fleet vehicles (max 6 years, up to 7% interest), $3,000,000 each year for radio network equipment (max 7 years, up to 7%), and $8,000,000 each year for IT upgrades (max 7 years, up to 7%). Payments come from existing fleet and IT accounts.
State energy projects and credits program
The state creates a Lead by Example program to run competitive, revolving grants for agency renewable energy, building efficiency, EVs, and charging stations. The program can buy, retire, and sell renewable energy credits. Net proceeds first pay a state obligation, and any extra goes to the program’s account.
Schools must maximize federal meal funds
Schools that get certain state meal funds must first maximize federal reimbursements, including using options like community eligibility when allowed. The Department checks whether schools are maximizing federal funds. Each year, the Department tells eligible schools about program options and can give technical help or hire support to boost federal funding.
Temporary budget flexibility at state psych centers
For fiscal years 2025‑26 and 2026‑27, DHHS may move leftover Personal Services funds in specified state psychiatric center programs to the All Other line after paying all salaries and benefits. Moves need a financial order, the State Budget Officer’s recommendation, and the Governor’s approval. These shifts are temporary and do not change original appropriations.
State grants and buildings follow local plans
All state agencies must, when possible, invest and award grants in ways that support locally adopted comprehensive plans. When giving certain grants, the state must first prefer towns with certified consistent plans, then plans with consistent zoning, then plans deemed consistent. For state facilities, the Bureau must prefer downtown and growth areas, and limit on‑site parking to critical or access needs; leases under 500 sq. ft. or under one year are exempt. These rules align state actions with local plans and set siting and parking limits.
Education budget lines and dues shifts
The state updates special revenue lines in school aid to match expected funds. Some lines go up, others go down. It also shifts which state fund pays dues to the New England Board of Higher Education. These are fund‑source and line‑item moves, not new benefits to families.
K-12 staffing changes and budget shifts
The law continues several limited‑period education jobs through December 31, 2026 and keeps a climate education staff role through June 30, 2026. One seasonal Education Specialist III becomes a 52‑week role. It also eliminates one part‑time Office Associate II (saving $40,027 in one year and $43,699 in the next). Other moves reassign positions and shift some costs, including 10% of one analyst to the General Fund.
Old unemployment code sections repealed
The law repeals 26 MRSA §1082, subsections 4‑A, 8, and 9‑A. This changes the text that governs unemployment claims and procedures. The law does not list new dollar amounts or who gains or loses.
One labor-law subsection repealed
The law repeals 26 M.R.S.A. §1082, subsection 10. The text does not specify a replacement or its practical effect.
Stronger hearing rules for jobless claims
The law creates a Division of Administrative Hearings to handle appeals. The Director must be a Maine‑licensed attorney, and hearing officers work under Civil Service rules. The commissioner and the commission can issue subpoenas, take oaths and depositions, and require records. Refusing a lawful subpoena without good cause is a Class E crime, treated as strict liability. If you are forced to testify after claiming the Fifth, your testimony cannot be used to prosecute you (but perjury still applies). The state also moves 11 hearing examiners and 2 managers to strengthen hearing operations.
Borrowing for state buildings and prisons
The Maine Governmental Facilities Authority can issue up to $28 million for state building work and cleanup. It can also issue up to $25 million for repairs and construction at correctional facilities. This expands state financing to complete these projects.
Budget shifts for MEMA, courts, tourism
Leased‑space costs for Maine Emergency Management move to the General Fund, adding $259,000 each year and cutting $200,000 in federal funds each year. Court case management funding shifts $1,838,125 to the General Fund and reduces other special funds by $988,852. Tourism spending is updated to match the December 1, 2024 revenue forecast. These are source‑of‑funding and budget alignment changes, not new fees for households.
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Sponsors & Cosponsors
Sponsor
Drew Gattine
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 6/18/2025
INDEFINITELY POSTPONE
Yes: 18 • No: 16
Senate vote • 6/18/2025
INDEFINITELY POSTPONE SENATE AMENDMENT (SAS-433)
Yes: 21 • No: 13
Senate vote • 6/18/2025
INDEFINITELY POSTPONE SENATE AMENDMENT (SBS-434)
Yes: 18 • No: 16
Senate vote • 6/18/2025
INDEFINITELY POSTPONE SENATE AMENDMENT (SCS-436)
Yes: 18 • No: 16
Senate vote • 6/18/2025
ENACTMENT
Yes: 19 • No: 15
House vote • 6/18/2025
ACC MAJ OTP AS AMENDED REP
Yes: 71 • No: 77
Senate vote • 6/18/2025
ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT
Yes: 19 • No: 15
House vote • 6/18/2025
RECEDE AND CONCUR
Yes: 75 • No: 73
House vote • 6/18/2025
Enactment
Yes: 74 • No: 73
Actions Timeline
ACTPUB Chapter 388
5/1/2026PASSED TO BE ENACTED, in concurrence. PREVAILED Roll Call Ordered Roll Call Number 635 Yeas 19 - Nays 15 - Excused 1 - Absent 0
6/18/2025SenatePASSED TO BE ENACTED. ROLL CALL NO. 583(Yeas 74 - Nays 73 - Absent 2 - Excused 2)Sent for concurrence. ORDERED SENT FORTHWITH.
6/18/2025HouseThe House RECEDED and CONCURRED to ACCEPTANCE of the Majority Ought to Pass as Amended Report and PASSAGE TO BE ENGROSSED as Amended by Committee Amendment "A" (H-759) as Amended by Senate Amendment "E" (S-438) thereto.ROLL CALL NO. 579(Yeas 75 - Nays 73 - Absent 1 - Excused 2)ORDERED SENT FORTHWITH.
6/18/2025HouseReports ReadOn motion by Senator ROTUNDO of Androscoggin the Majority Ought to Pass as Amended Report ACCEPTED. PREVAILED Roll Call Ordered Roll Call Number 627 Yeas 19 - Nays 15 - Excused 1 - Absent 0 READ ONCE Committee Amendment "A" (H-759) READ On motion by Senator ROTUNDO of Androscoggin Senate Amendment "E" (S-438) to Committee Amendment "A" (H-759) READ and ADOPTED. Senator BENNETT of Oxford moved to ADOPT Senate Amendment "D" (S-437) to Committee Amendment "A" (H-759) Senate Amendment "D" (S-437) READ On motion by Senator ROTUNDO of Androscoggin the Senate INDEFINITELY POSTPONED Senate Amendment "D" (S-437) PREVAILED Roll Call Ordered Roll Call Number 628 Yeas 18 - Nays 16 - Excused 1 - Absent 0 Senator MOORE of Washington moved to ADOPT Senate Amendment "A" (S-433) to Committee Amendment "A" (H-759) Senate Amendment "A" (S-433) READ On motion by Senator ROTUNDO of Androscoggin the Senate INDEFINITELY POSTPONED Senate Amendment "A" (S-433) PREVAILED Roll Call Ordered Roll Call Number 629 Yeas 21 - Nays 13 - Excused 1 - Absent 0 Senator MOORE of Washington moved to ADOPT Senate Amendment "B" (S-434) to Committee Amendment "A" (H-759) Senate Amendment "B" (S-434) READ On motion by Senator ROTUNDO of Androscoggin INDEFINITELY POSTPONED Senate Amendment "B" (S-434) PREVAILED Roll Call Ordered Roll Call Number 630 Yeas 18 - Nays 16 - Excused 1 - Absent 0 Senator BICKFORD of Androscoggin moved to ADOPT Senate Amendment "C" (S-436) to Committee Amendment "A" (H-759) Senate Amendment "C" (S-436) READ On motion by Senator ROTUNDO of Androscoggin the Senate INDEFINITELY POSTPONED Senate Amendment "C" (S-436) PREVAILED Roll Call Ordered Roll Call Number 631 Yeas 18 - Nays 16 - Excused 1 - Absent 0 Subsequently Committee Amendment "A" (H-759) as Amended by Senate Amendment "E" (S-438) thereto ADOPTED Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-759) as Amended by Senate Amendment "E" (S-438) thereto In NON-CONCURRENCE Sent down for concurrence
6/18/2025SenateReports READ.Motion of Representative GATTINE of Westbrook to ACCEPT the Majority Ought to Pass as Amended Report FAILED.ROLL CALL NO. 571(Yeas 71 - Nays 77 - Absent 1 - Excused 2)On motion of Representative GATTINE of Westbrook, the Minority Ought Not to Pass Report was ACCEPTED.Sent for concurrence. ORDERED SENT FORTHWITH.
6/18/2025HouseCarried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
3/21/2025HouseReceived by the Clerk of the House on January 14, 2025.The Bill was REFERRED to the Committee on APPROPRIATIONS AND FINANCIAL AFFAIRS pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
1/14/2025House
Bill Text
Enacted
Engrossed
Introduced
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