Appropriations Committee Advances Supplemental Budget Focused on Stability, Relief, and Essential Services
AUGUSTA, Maine – The Legislature’s Appropriations and Financial Affairs Committee today voted 8-4 to advance a supplemental budget focused on protecting essential services, delivering targeted relief, and meeting the state’s most immediate obligations in a challenging fiscal environment.
The proposal prioritizes stability and responsibility through a targeted increase on those earning more than $1M per year, allowing the state to respond to real pressures facing Maine people — from rising housing and energy costs to child care access, and health care, while maintaining discipline around ongoing spending and preparing for continued economic uncertainty.
The budget includes a combination of one-time relief and targeted one-time and ongoing investments designed to help Maine people manage costs now while sustaining the core systems they rely on in future years.
Highlights of the Supplemental Budget:
Includes a Millionaires’ Tax, which establishes a 2% surcharge on annual incomes over $1 million, a targeted approach designed to shift some of the tax burden of maintaining essential services from working families.
Delivers $11.4 million in direct property tax relief through the Property Tax Fairness Credit by increasing the maximum benefit.
Increases minimum teacher salaries, improves school bus safety, maintains free community college, and supports policies to reduce distraction from cell phones in schools.
Funds energy and heating assistance for Maine people in the face of continued volatility in energy prices.
Provides direct relief payments of $300 to more than 514,000 Maine people, helping households cover everyday costs like groceries, heating, rent, and child care.
Funds eviction prevention, housing creation, Maine Veterans’ Homes, and age-in-place programs across Maine.
Invests in child care subsidies to clear waitlists, support providers, expand access to care, and ensure children in public pre-K programs are fed.
Encourages workforce growth and retention across multiple sectors, including a 3.07% cost-of-living adjustment (COLA) for vital direct care workers, to strengthen Maine’s economy and meet employer demand.
Allocates funding to ensure that Maine’s health and human services systems can meet federal requirements from H.R.1.
Meets statutory obligations for public defense, supports court operations, civil legal aid and victim services, and includes funds needed for implementation of the red flag law approved by voters in November 2025.
Supports the Highway Fund to help maintain the state’s transportation infrastructure.
Addresses funding gaps in public lands programs and strengthens Maine’s natural resource economy.
Following the committee vote, the Presiding Officers and the Chairs of the Appropriations and Financial Affairs Committee released the following statements:
“At a time when Maine families are feeling squeezed from every direction, we’ve been focused on the choices that will actually make a difference in people’s wallets,” said Senate President Mattie Daughtry (D-Brunswick). “This budget is grounded in the realities Mainers are facing every day — from the cost of keeping the lights on to the pressure of property taxes, lack of affordable childcare, and the weight of everyday bills. These are responsible investments that strengthen the systems our communities depend on while helping Mainers prepare for financial uncertainty.”
“In the face of uncertainty and chaos in Washington, this budget provides the investments Maine people are looking for and that they expect from their leaders,” said House Speaker Ryan Fecteau (D-Biddeford). “This budget includes a cost-of-living adjustment for direct care workers and investments in health care, child care, housing, and helping Mainers afford rising energy costs due to the war in Iran. Now is the time to show working people what’s possible when their leaders hear them and fight for them.”
“This budget reflects the work of legislative Democrats to make thoughtful, deliberate choices in an extremely tight fiscal environment,” said Sen. Peggy Rotundo (D-Lewiston), Senate Chair of the Appropriations and Financial Affairs Committee. “We focused on what matters most in Mainers’ lives — things like easing the cost of heating homes, supporting our teachers and strengthening our local schools, and lifting the weight of property taxes. We made targeted investments that will have the greatest impact on household budgets, while making state dollars stretch further for taxpayers and protecting Maine’s financial future.”
“This budget includes measures that will absolutely help make things more affordable for Maine people,” said Rep. Drew Gattine (D-Westbrook), House Chair of the Appropriations and Financial Affairs Committee. “It ensures access to health care, it provides property tax relief in the face of rising housing costs, it provides assistance to help folks heat their homes, and it supports workforce development to strengthen Maine’s economy in communities across the state. I am proud to support it.”
The supplemental budget now moves to the full Legislature for consideration and additional votes.
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