Maine Lawmakers Approve Supplemental Budget with Millionaire Tax and Relief Checks

The $292 million budget includes funding for healthcare, housing, and education, but faces Republican opposition.

Apr. 2, 2026 at 11:20pm

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A dynamic, fractured painting in shades of blue, green, and gray depicting the Maine state capitol building, conveying the complex political tensions surrounding the state's supplemental budget.The Maine legislature's heated debate over the supplemental budget reflects the state's ongoing political divisions on taxation and spending.Augusta Today

The Maine legislature has approved a supplemental budget that includes a new 2% tax on income earned by millionaires, $300 relief checks for eligible residents, and investments in healthcare, housing, and education. While Democrats champion the budget as a way to fund essential programs, Republicans argue the state should focus on reducing spending rather than raising taxes.

Why it matters

The supplemental budget reflects the ongoing political divide in Maine over taxation and government spending. The new millionaire tax is seen by Democrats as a fair way to generate revenue, but Republicans warn it could drive wealthy residents out of the state. The budget also highlights the debate over using the state's rainy day fund and providing direct financial relief to residents.

The details

The $292 million supplemental budget pulls funds from Maine's Budget Stabilization Fund, often called the rainy day fund. About $155 million will go toward $300 relief checks, with eligibility scaled back to single filers earning up to $50,000 and joint filers earning up to $100,000. The budget also includes funding to address a MaineCare deficit, support housing initiatives, and increase pay for healthcare workers and teachers. Additionally, it introduces a new 2% tax on income earned by millionaires, which is expected to generate around $90 million in revenue next year.

  • The supplemental budget was finalized around 1:30 AM on April 2, 2026.
  • The new 2% tax on millionaires' income is expected to take effect in the next fiscal year.

The players

Janet Mills

The Governor of Maine, who supports the supplemental budget and the new millionaire tax.

Drew Gattine

A Democratic state representative who serves as the House chair on the Appropriations and Financial Affairs Committee, and argues the additional revenue will help sustain long-term investments.

Kenneth Fredette

A Republican state representative who warns the millionaire tax could drive wealthy residents out of the state.

Amy Arata

A Republican state representative who has been voicing opposition to spending the state's rainy day fund, concerned about a potential economic downturn.

Destie Hohman Sprague

The executive director of the Maine Women's Lobby, who argues that millionaires have a greater ability to contribute and should do so.

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What they’re saying

“Millionaires have more ability to give, and they should absolutely be contributing in this way.”

— Destie Hohman Sprague, Executive Director, Maine Women's Lobby

“I think we need to continue to try to do more.”

— Drew Gattine, State Representative, House Chair on Appropriations and Financial Affairs Committee

“Their family is here, their capital is here. [They] say, 'it is finally time for us to move on because, you know, we're starting to see a Maine that we no longer recognize.'”

— Kenneth Fredette, State Representative

“If there is an economic downturn, the state of Maine is going to be in deep, deep trouble.”

— Amy Arata, State Representative

What’s next

The state's nonpartisan staff are working to tabulate the full list of expenses in the supplemental budget to ensure it remains balanced.

The takeaway

The passage of Maine's supplemental budget highlights the ongoing political tensions over taxation and government spending, with Democrats championing new revenue sources like the millionaire tax to fund essential programs, while Republicans argue the state should focus on reducing costs rather than raising taxes.