Maine

Maine

Budget Links

FY2026-2027 supplemental (proposed)
FY2026-2027 (enacted)
FY2024-2025 supplemental (enacted)
FY2024-2025 (enacted)
FY2022-2023 supplemental (enacted)
FY2022-2023 (enacted)

Proposed Supplemental Budget - Fiscal Years 2026-2027

During the 2025 legislative session, Maine enacted a biennial budget for fiscal 2026 and fiscal 2027 totaling $11.65 billion in general fund spending for the biennium. On February 4, Maine Governor Janet Mills introduced a supplemental budget proposal for fiscal 2026 and fiscal 2027 representing $275 million in additional general fund appropriations on net ($87.8 million for fiscal 2026 and $187.8 million for fiscal 2027), which would bring the total general fund budget to $11.93 billion for the biennium. The supplemental budget proposal is based on an updated general fund revenue forecast adding approximately $248 million in revenue for fiscal 2026 and 2027. Total general fund revenue is estimated by the Revenue Forecasting Committee at $5.86 billion for fiscal 2027, a 1.4 percent increase over the revised estimate for fiscal 2026. In addition to relying on revenue surplus funds, the supplemental budget also proposes to tap the state’s record-high Budget Stabilization Fund (rainy day fund) for multiple one-time investments; after these withdrawals, the rainy day fund balance is projected at more than $700 million.

Proposed Budget Highlights 

The governor’s supplemental budget proposal aims to improve affordability, spur housing construction, and make free community college permanent, while also maintaining the state’s core spending commitments in areas like education and healthcare. The budget also proposes investments in economic development and public safety, as well as steps to conform with new federal tax policies.

Affordability

• Uses rainy day funds to provide a one-time $300 Affordability Payment to residents.
• Uses rainy day funds to build an estimated 825 additional affordable homes.
• Proposes to make the state’s free community college program permanent as well as funds one-time investment to support students currently enrolled in the program.

Education

• Provides increased K-12 funding to continue meeting the state’s obligation to pay 55 percent of local education costs.
• Calls for a phased-in approach to raise minimum teacher salaries.
• Provides funding to help schools implement a cell phone ban.
• Uses rainy day funds to install school bus safety enhancements.

Health and Human Services

• Funds a 4 percent increase in the Medicaid program to account for inflation, utilization and patient needs.
• Repays federal government, as required by federal law, for a portion of prescribed drug costs for dually enrolled Medicaid-Medicare beneficiaries.
• Supports reproductive health care providers with additional funding.
• Allocates general funds to cover additional state costs for MaineCare and SNAP due to federal changes.
• Uses rainy day funds to pay for technology and compliance upgrades to implement provisions in the One Big Beautiful Bill Act (OBBBA).
• Provides additional funds for crisis services and disability services.
• Directs funds to support the state’s homeless shelter network.

Economic Development

• Provides funds to university researchers aimed at securing additional grants and funding to train workers in emerging areas such as advanced manufacturing, robotics, and more.
• Directs funds to artificial intelligence (AI) initiatives in line with recommendations from the governor’s task force on AI.

Public Safety

• Funds implementation of “red flag” gun law approved by voters in November 2025.
• Provides funds to track sexual assault kits.
• Uses rainy day funds to provide indigent legal services.

Other Investments

• Supports investments in veterans’ homes and proposes to create a simpler property tax exemption for veterans.
• Provides funds to extend and expand the Grid Resilience Grant Program.

Tax Conformity

• Gradually increases state standard tax deduction to match the federal level.
• Adopts federal R&D tax changes immediately for small businesses and phased in over five years for large businesses.
• Phases in a new charitable giving deduction for nonitemizers. 

Proposed Budget Information
Fiscal Years 2026-2027 Supplemental Budget Proposal 

Fiscal Note

Governor's Press Release

Tax Conformity in Budget 

Revenue Forecast - December 2025