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Maine Capitol Update

Maine Capitol Update

February 2, 2026

New Bills for the 2026 Legislative Session

A report on key legislation and committee actions will be in the next Update.

For more information: https://legislature.maine.gov/

NFIB Webinar – PFML Benefits & Employer Actions

NFIB is partnering with Maine PFML officials on a February 18 webinar (12:30-1:30) regarding what employers need to know with the implementation of benefits.  Employee applications for paid leave begin in April.  Paid leave begins May 1.

Webinar registration: NEED LINK IN MAINE ALERT/REGISTRATION

State of the State Address

Gov. Janet Mills in her January 27th speech unveiled an “Affordability Agenda” that she said “will deliver immediate financial relief and long-term cost stability for Maine people” through:

  • “Affordability Relief Checks” ($300 for single income tax filers, $600 for joint) for approximately 725,000 Maine people “to help offset rising everyday costs.” The estimated $218.5 million cost will come from the Rainy Day Fund that is now at its statutory maximum of $1 billion.
  • “Bold American Dream” initiative to build more housing, funded by $70 million from the Rainy Day Fund.
  • Make tuition-free community college permanent.
  • Provide an additional $46 million funding to maintain the state’s commitment to pay 55% of the cost of K-12 education, which she said equates to $3.6 billion over the fiscal biennium “that would otherwise be collected through property taxes.”

 

The Governor said she was proud of the 16,200 private sector jobs increase, long stretch of low unemployment, and upgraded state credit rating to the second highest possible rating.

However, she pointed to the high cost of living as “one of the biggest obstacles for many people today” and proposed to tackle the situation through the Affordability Agenda, improvement in reading and math skills of K-12 students, a statewide ban on cellphone use during the school day, and achieving continued emphasis on lower energy costs “by lowering our reliance on fossil fuels” and increased weatherization of homes.

Declaring that “health care is a human right,” Governor Mills said “it is time for the Federal government to take its head out of the sand and address the crisis of health care head on.  Nothing should of universal health care is acceptable.”

The Governor’s ideas for income tax conformity with changes in the federal tax code will be announced soon as part of her supplemental budget proposal.

Governor’s speech: www.maine.gov/governor/mills/news/final-state-state-governor-mills-unveils-affordability-agenda-pledges-defend-maine-people

Republican response: https://mainehousegop.org/newsroom/republican-response-to-the-state-of-the-state-address-january-27-2026/

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