Maine Governor Unveils Final Budget Proposal with Relief Checks, Housing Funds, and Tax Changes

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Maine Governor Janet Mills has released her supplemental budget proposal for her final year in office, outlining a $600 million spending plan that includes direct relief payments, long-term investments in housing, and tax changes. The proposal pulls funding from the state's General Fund and Budget Stabilization Fund, with the largest expenditure being $218.5 million for one-time $300 relief checks to roughly half of Maine's population. Other key elements include a $70 million housing investment and making the state's free community college program permanent.

Why it matters

Governor Mills' final budget proposal aims to provide direct financial assistance to Mainers, address the state's housing shortage, and make key investments in education - all while navigating political tensions around tax cuts. The plan draws from Maine's rainy day fund, signaling the administration's priorities for using the state's fiscal reserves in its waning days.

The details

The $600 million budget proposal includes $275 million from Maine's General Fund and $324.7 million from the Budget Stabilization Fund. The largest expenditure is $218.5 million for one-time $300 relief checks to roughly half of the state's population. The plan also includes a $70 million investment in housing and a $2.5 million one-time infusion to make the state's free community college program permanent. Additionally, the budget proposes tax changes such as increasing the standard deduction, allowing businesses to write off more research and development costs, and introducing new charitable donation deductions.

• Governor Mills unveiled the supplemental budget proposal on February 5, 2026.

What’s next

The budget proposal must now make its way through the Maine Legislature, where the Appropriations and Financial Affairs Committee will hold a public hearing and begin reviewing the plan.