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The Maine Legislature is at the midway point of this year’s legislative work. Members are still debating part two of the biennial budget, transportation and infrastructure bonding, as well as general legislative business. There is still much to do and about two months left before Legislators will head home until next January. Here are some things we have been watching at the State House.
Maine Legislative Democrats and Republicans are stalled in negotiations over the second part of the 2025-2027 biennial budget, following the $11.3 billion baseline budget passed in March 2025. Democrats aim to address a $450 million structural gap, proposing targeted revenue increases like cigarette and cannabis taxes, while Republicans demand spending cuts and MaineCare reforms to curb costs. Both sides face pressure to avoid cuts to core services like education and healthcare. Tensions remain high after a partisan first budget, with calls for bipartisan compromise growing urgent as the July 1, 2025, fiscal year start looms.
A group of Republican lawmakers have launched a People’s Veto of the first round of the budget. If successful, the people’s veto could launch the Legislature and the State into uncharted waters. By placing the budget on the ballot in November 2025, all state services would be shut down from July 1 – November 4 at the earliest. Supporters have until mid-June to collect almost 70,000 signatures.
Maine lawmakers are debating transportation and infrastructure funding for 2025. Republicans, led by Sen. Brad Farrin (R-Somerset), have proposed a $100 million transportation bond and redirecting vehicle sales taxes to the Highway Fund, avoiding new taxes. The state’s $4.8 billion three-year plan includes road, bridge, and transit projects, but rising costs and reliance on bonds have sparked concerns on both sides of the aisle.
Maine’s State Auditor, Matt Dunlap, recently released a 2024 audit exposing systemic overuse and abuse of no-bid contracts by the Mills administration. The report highlights $2.1 billion in procurement spending with inadequate oversight, including undocumented sole-source contracts and bypassed competitive bidding. Notable issues include "contract stacking" to avoid scrutiny and missing cost analyses, raising risks of waste and cronyism. While the administration claims existing controls suffice, Republicans demand deeper investigations, citing potential corruption. The audit, spanning 19 federal programs, underscores the need for transparency as agencies resist findings, prompting legislative calls for reform.