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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)

Became Law

FINANCIAL PRACTICESFINANCIAL PRACTICES - LOANS

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Bill Overview

Analyzed Economic Effects

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

How shutdown loans work and repay

The Finance Authority of Maine runs the program and guarantees qualifying loans. Loans charge no interest during the grace period and for 180 days after it ends; no payments are due in the grace period. The grace period lasts until the later of 90 days after funding or the end of the shutdown, and you must repay in 3 to 6 equal payments no later than 180 days after the grace period. The most you can borrow is the lesser of $6,000 or your most recent monthly take‑home pay, minus four weeks of any unemployment benefits you get or can get. You may take up to three loans in the same shutdown, at least 30 days apart, with updated paperwork; lenders cannot use credit scores or charge prepayment penalties. Deferred interest is exempt from state taxes. Banks and credit unions can join fast (5‑business‑day decision) and must notify the authority within 5 business days after making a loan; they can file guarantee claims 180–300 days after the grace period if collections fail, and the authority must stop approving claims if total guarantee payments reach 10% of all program loans.

State fund backs shutdown loans

The State Treasurer holds a nonlapsing fund to guarantee these loans and pay program admin costs. The State Controller transfers $250,000 into the fund within 14 days after the law takes effect. The law also provides $250,000 for fiscal year 2025–26 (and $0 for 2026–27). The fund can receive money from any source, including future surplus or transfers.

Who can get shutdown loans

You qualify if you live in Maine and work for the federal or state government. You must be required to work without pay or be furloughed without pay. The program starts only when a shutdown lasts more than 7 straight days, and each shutdown is treated separately. New loans are made only during the shutdown, and you must show proof of your job, Maine residency, and unemployment benefit status.

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. ACTPUB Chapter 494

    5/1/2026

  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

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