Gov. Mills Unveils Final Budget Proposal with Affordability Agenda

Democrat's spending plan includes $300 checks, free community college, and increased education funding

Feb. 4, 2026 at 2:15pm

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Gov. Janet Mills, a Democrat running for U.S. Senate, has unveiled her final budget proposal as governor of Maine. The supplemental budget focuses on an 'affordability agenda' that includes $300 checks for qualifying Mainers, making free community college permanent, and increasing funding for public education and Medicaid. Republicans have criticized the growing state budget under Mills, but Democrats hope the affordability measures will resonate with voters ahead of the 2026 midterm elections.

Why it matters

This budget proposal represents Gov. Mills' final spending plan before her potential transition to the U.S. Senate. The affordability agenda is aimed at addressing key issues like high housing costs and the cost of living that Democrats believe will be important to voters. However, the growing state budget under Mills has drawn criticism from Republicans, setting up a political battle over the final budget of her tenure.

The details

The $250 million supplemental budget proposal includes $300 'affordability checks' for about 725,000 Mainers, $2.25 million for reproductive health providers, $70 million for new housing, and a plan to increase minimum teacher salaries from $40,000 to $50,000 by 2029. It also provides $46 million to meet a voter-approved mandate to fund 55% of public education costs, bringing the state's share to nearly $1.6 billion. Additionally, $25.4 million from the state's rainy day fund would go to the Maine Commission on Public Defense Services, and $6.7 million would fund artificial intelligence initiatives.

  • Gov. Mills unveiled the supplemental budget proposal on February 4, 2026.
  • The proposed teacher salary increases would be phased in starting in the fall of 2027.

The players

Gov. Janet Mills

The Democratic governor of Maine who is running for U.S. Senate. She has served two terms as governor and is proposing her final state budget.

Maine Republicans

GOP lawmakers in the state legislature who have criticized the growing state budget under Mills' tenure, despite a series of surpluses.

Maine Democrats

The Democratic majority in the state legislature, which will have leverage to pass Gov. Mills' budget proposal as proposed, though there have been clashes over previous budgets.

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What they’re saying

“Through this proposal, we are delivering financial relief to Maine people, addressing high housing costs, and making free community college — a highly successful program for Maine students — permanent.”

— Gov. Janet Mills

“Republicans say they oppose the governor's $300 checks, which would come from$218.5 million in the state's 'rainy day fund.' Republican members are instead calling for conformity with Trump's tax breaks, a higher standard tax deduction and a $6,000 tax break for Mainers who are 65 and older.”

— Republican lawmakers

What’s next

The Maine Legislature must adopt Gov. Mills' spending proposals if they are to become reality. Democrats have controlled the Legislature for all eight years of Mills' tenure, but their majority in the Maine House of Representatives is down to a narrow 75-73 advantage, setting up a potential political battle over the final budget of her administration.

The takeaway

Gov. Mills' final budget proposal reflects her Democratic priorities, with a focus on affordability measures that the party hopes will resonate with voters ahead of the 2026 midterm elections. However, the growing state budget under Mills' tenure has drawn criticism from Republicans, who are calling for tax breaks instead of direct payments to residents.