The 132nd Maine Legislature convened on Wednesday, December 4, with all 186 members taking their oaths of office. The opening day was marked by a mix of familiar and new faces representing every corner of the state. However, this session begins under the weight of significant challenges, including a substantial structural gap in the state budget, an ongoing housing crisis, instability within the Department of Health and Human Services, and a new federal administration taking shape in Washington.

In the House, Democrats hold a narrow plurality with 75 seats, followed closely by Republicans with 73, alongside 2 unenrolled members. One seat remains vacant in Bangor following Rep. Joe Perry’s (D-Bangor) election as State Treasurer. With a majority requiring 76 votes, the chamber is closely contested. Former Speaker Ryan Fecteau (D-Biddeford) returned to the role, while House Republicans reelected Rep. Billy Bob Faulkingham (R-Winter Harbor) as their leader and introduced Rep. Katrina Smith (R-Palermo) as assistant leader. House Democrats reinstated Rep. Matt Moonen (D-Portland) as majority leader and appointed Rep. Lori Gramlich (D-Old Orchard Beach) as assistant leader.

The Senate also reflects a tighter division than the 131st Legislature, with Democrats holding 20 seats and Republicans 15. Leadership saw significant shifts with the departure of former Senate President Troy Jackson (D-Aroostook) due to term limits. Democrats elected Sen. Mattie Daughtry (D-Cumberland) as the new Senate President, supported by leadership team members Sen. Teresa Pierce (D-Cumberland) and Sen. Jill Duson (D-Cumberland). On the Republican side, Sen. Trey Stewart (R-Aroostook) was retained as minority leader, while Sen. Matt Harrington (R-York) stepped into the assistant leader role.

One notable change this session is the restructuring of legislative committees, particularly those relevant to ABC Maine. Historically, ABC Maine has worked with the Labor and Housing Committee and the Innovation, Development, Economic Advancement, and Business (IDEA) Committee. These have been restructured into separate Labor, Housing, and Economic Development Committees, reflecting the Legislature's shifting priorities. Labor and Housing will now be addressed independently, highlighting the Legislature’s heightened focus on these areas. Key committee leaders include Sen. Mike Tipping (D-Penobscot) and Rep. Amy Roeder (D-Bangor) for the Labor Committee, while Rep. Traci Gere (D-Biddeford) and Sen. Chip Curry (D-Waldo) chair the new Housing Committee. ABC Maine anticipates familiar legislative battles over Project Labor Agreements, wage transparency, Buy America provisions, and other recurring issues.

The Legislature faces a daunting $1 billion structural budget gap for the upcoming biennium. In a letter to legislators, Governor Janet Mills emphasized the need for tough decisions on spending cuts and revenue generation while reaffirming her commitment to avoiding an income tax increase—a pledge she has upheld since her 2018 election. Previous budgets were buoyed by federal COVID-19 funding and higher-than-expected state tax revenues, leading to increased spending. With those resources now dwindling, Democrats are seeking bipartisan solutions to address the funding shortfall. The Governor’s budget proposal, scheduled for release on January 10, is expected to outline her administration’s approach to balancing these competing priorities.