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MaineLD 874132nd Maine Legislature (2025-2026)HouseWALLET

An Act to Provide Relief to Federal or State Employees Affected by a Federal Government or State Government Shutdown

Sponsored By: Kristi Mathieson (Democratic)

Signed by Governor

FINANCIAL PRACTICESFINANCIAL PRACTICES - LOANS

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

No state tax on deferred loan interest

Maine does not tax any interest that is deferred or not charged on these shutdown loans. Lenders must tell you about possible federal tax effects and that loan details may be shared with the state authority.

Shutdown loans for unpaid government workers

Maine residents who are federal or state workers, required to work without pay or furloughed in a shutdown lasting more than 7 days, can get short‑term loans. You must show proof of Maine residence, your job and income, and sign a sworn affidavit that includes your weekly unemployment amount. Your loan equals the lesser of $6,000 or your most recent monthly after‑tax pay, minus 4 times the higher of your weekly unemployment received or eligible. You can get up to three loans in the same shutdown, one per extra 30 days you stay eligible. Lenders cannot use your credit score. No payments are due during the grace period, and no interest is charged before or during the grace period and for 180 days after it; you must repay in full within 180 days after the grace period, in 3 to 6 equal payments. You cannot apply after the shutdown ends.

State guarantee and funding for shutdown loans

The Finance Authority of Maine runs the loan guarantee program and the Treasurer pays approved claims from a special fund. The state creates a nonlapsing fund, transfers $250,000 to it within 14 days of the law, and appropriates $250,000 for FY 2025–26 ($0 for 2026–27). The Bureau decides lender eligibility within 5 business days; lenders must notify the Authority within 5 business days after making a loan. If a borrower does not repay, the lender may file a claim 180–300 days after the grace period; the Treasurer pays valid claims from the fund. After a payment, the lender assigns the loan to the Authority, which continues collection and returns recovered money (minus costs) to the fund. The Authority keeps records, can deny or end guarantees if a lender misrepresents facts, and must stop approving claims once guarantee payouts reach 10% of total loans.

Sponsors & Cosponsors

Sponsor

  • Kristi Mathieson

    Democratic • House

Cosponsors

  • Ann Matlack

    Democratic • House

  • Anne-Marie Mastraccio

    Democratic • House

  • Donna Bailey

    Democratic • Senate

  • Joseph M. Baldacci

    Democratic • Senate

  • Kristen Cloutier

    Democratic • House

  • Matthea E. L. Daughtry

    Democratic • Senate

  • Michelle Boyer

    Democratic • House

  • Nina Milliken

    Democratic • House

  • Poppy Arford

    Democratic • House

  • Sally Cluchey

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 169 • No: 115

House vote • 6/25/2025

RECEDE AND CONCUR

Yes: 81 • No: 59

House vote • 5/20/2025

Enactment

Yes: 88 • No: 56

Actions Timeline

  1. Signed by Governor, ACTPUB Chapter 494

    7/7/2025

  2. PASSED TO BE ENACTED, in concurrence.

    6/25/2025Senate

  3. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    6/25/2025House

  4. The House RECEDED and CONCURRED to PASSAGE TO BE ENGROSSED as Amended by Committee Amendment "A" (H-121) as Amended by Senate Amendment "A" (S-465) thereto.ROLL CALL NO. 593(Yeas 81 - Nays 59 - Absent 9 - Excused 2)ORDERED SENT FORTHWITH.

    6/25/2025House

  5. On motion by Senator ROTUNDO of Androscoggin taken from the Special Appropriations Table On motion by Same Senator the Senate SUSPENDED THE RULES to RECONSIDER their actions whereby the Bill was PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-121) On further motion by Same Senator the Senate SUSPENDED THE RULES to RECONSIDER their actions whereby Committee Amendment "A" (H-121) was ADOPTED. On further motion by Same Senator Senate Amendment "A" (S-465) to Committee Amendment "A" (H-121) READ and ADOPTED. Committee Amendment "A" (H-121) as Amended by Senate Amendment "A" (S-465) thereto ADOPTED. PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-121) as Amended by Senate Amendment "A" (S-465) thereto in NON-CONCURRENCE. Sent down for concurrence.

    6/25/2025Senate

  6. On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending ENACTMENT in concurrence.

    5/21/2025Senate

  7. PASSED TO BE ENACTED. ROLL CALL NO. 162(Yeas 88 - Nays 56 - Absent 7 - Excused 0)Sent for concurrence. ORDERED SENT FORTHWITH.

    5/20/2025House

  8. Report READ and ACCEPTED, in concurrence.READ ONCE.Committee Amendment "A" (H-121) READ and ADOPTED, in concurrence.Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-121), in concurrence.Ordered sent down forthwith.

    5/14/2025Senate

  9. CONSENT CALENDAR - FIRST DAYUnder suspension of the rules CONSENT CALENDAR - SECOND DAY.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-121).Sent for concurrence. ORDERED SENT FORTHWITH.

    5/13/2025House

  10. Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.

    3/21/2025House

  11. The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES in concurrence

    3/4/2025Senate

  12. Committee on Health Coverage, Insurance and Financial Services suggested and ordered printed. The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES.Sent for concurrence. ORDERED SENT FORTHWITH.

    3/4/2025House

Bill Text

  • Amendment C-A (H-121), adopted by House & Senate

    PDF

  • Amendment S-A to C-A (S-465), adopted by House & Senate

    PDF

  • Enacted

    PDF

  • Introduced

    PDF

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