State of the State: 2025 vs 2026
Governor Janet Mills -- comparing priorities year over year
From Budget Crisis Management to Bold Relief and Federal Resistance
Governor Mills' 2025 address was fundamentally a budget address focused on navigating a difficult fiscal environment. She laid out the challenge of an $11.67 billion spending need against $11.2 billion in revenue, detailed proposed savings including scaling back child care stipends, suspending MaineCare provider cost-of-living increases, and reducing Head Start funding and General Assistance housing payments. She proposed a $1 cigarette excise tax increase, cannabis tax restructuring, and new assessments on ambulances and pharmacies to close the gap. The tone was sober and fiscally cautious, urging bipartisan restraint and explicitly warning legislators that "this time around, we simply cannot say yes."
By 2026, the fiscal austerity framing had largely disappeared, replaced by a proactive spending agenda drawing heavily from Maine's record-high $1 billion+ Rainy Day Fund. Mills proposed $300 Affordability Relief checks to an estimated 725,000 Maine people, a $70 million "American Dream" housing package (including $17.5 million for two pilot programs to build 530 new homes and $52.5 million to leverage $15 million in federal matching funds for a total of 825 new homes), and renewed her push to make free community college permanent. The pivot from deficit management to direct relief spending marks a dramatic tonal and substantive shift.
The 2026 address also introduced a major new emphasis on confronting the federal government. While the 2025 speech mentioned the new Trump administration cautiously — "if the President does something good for our state, I will support him" — the 2026 address was sharply adversarial, denouncing the "Big Bad Bill" that she said would cost Maine an estimated $5 billion in health care funds over ten years and cause 33,000 people to lose coverage. She proposed $2.25 million to replace federal cuts to Planned Parenthood and Maine Family Planning, explicitly called for universal health care, and warned federal officials: "if you seek to harm Maine people, you will have to go through me first."
Several 2025 priorities — including detailed substance use disorder policy, the Yellow Flag gun law defense, the public defense services crisis, and specific budget savings mechanisms — were absent or dramatically de-emphasized in 2026. In their place, Mills introduced a statewide cellphone ban in schools, highlighted broadband connectivity achievements, emphasized energy diversification and weatherization, and delivered an extended meditation on democracy, constitutional principles, and federal overreach. The 2026 speech was notably valedictory in tone, as Mills acknowledged it was her eighth and final State of the State address, framing her legacy around emergency response, health care expansion, and economic growth.
New Priorities in 2026
- +$300 Affordability Relief checks drawn from the Rainy Day Fund for an estimated 725,000 Maine residents, capped at $75,000 single/$150,000 joint income.
- +$70 million 'American Dream' housing proposal including two new pilot programs ($17.5 million) to build 530 homes and $52.5 million in expanded housing investments to trigger $15 million in federal matching funds, totaling 825 new homes.
- +Statewide ban on cellphone use during the school day, from bell to bell, to improve student performance and mental health.
- +$2.25 million in General Fund appropriation to replace federal cuts to Planned Parenthood and Maine Family Planning primary care services.
- +Explicit call for universal health care as a national solution, declaring 'health care is a human right' and 'it's an idea whose time has definitely come.'
- +Strong rhetorical and policy confrontation with the federal government over immigration enforcement, health care cuts (the 'Big Bad Bill' estimated to cost Maine $5 billion over ten years), and constitutional rights.
- +Highlighting broadband connectivity as a completed achievement — declaring every person who wants an internet connection now has access to one.
- +New Maine State Reading and Math Action Plans and 'Science of Reading' initiative ($10 million investment) to address declining test scores.
- +Emphasis on energy diversification and weatherization, including millions in rebates for heat pumps, high-efficiency water heaters, and home upgrades, and touting a reduction in heating oil reliance from 62% to 50% of Maine homes.
Dropped from 2025
- −The detailed fiscal austerity framework — the $470 million budget gap, proposed savings through scaling back child care stipends, suspending MaineCare provider COLA increases, reducing Head Start funding, and cutting General Assistance housing payments — was absent in 2026.
- −The $1 cigarette excise tax increase, cannabis tax restructuring, and new assessments on ambulances and pharmacies were not mentioned in 2026.
- −Substance use disorder policy, including the 16-19% decline in overdose deaths, Medication Assisted Treatment in county jails, and Mobile Crisis Response Teams ($1.5 million), received no mention in 2026.
- −The detailed defense of the Yellow Flag (Extreme Risk Protection Order) law against a pending referendum challenge was entirely absent.
- −The crisis in the Maine Commission on Public Defense Services — including the 658% increase in unrepresented defendants and call for the Commission to reform its rules — was not addressed.
- −The MaineCare supplemental budget gap caused by pandemic-era enrollment requirements and cost reimbursement practices was not revisited as a distinct issue.
- −The proposed residential psychiatric treatment facility for youth, the first of its kind in Maine, and the DOJ settlement on children's behavioral health services were not mentioned.
- −The pension deduction modification for higher-income retirees proposed as a savings measure in 2025 was not discussed.
Shifted Emphasis
- ↔Free community college shifted from a budget proposal to make it permanent (2025) to a renewed and more forceful push after the Legislature only extended it through the class of 2025, with Mills saying she was 'taking another swing at it.'
- ↔Housing policy expanded dramatically — from maintaining existing programs and $3 million for the Mobile Home Preservation Fund (2025) to a $70 million 'American Dream' proposal and highlighting $315 million total housing investment since taking office, with specific new developments like Wilbur's Woods and Congress Square Apartments.
- ↔The federal government shifted from a cautious, wait-and-see posture in 2025 ('if the President does something good, I will support him; if he does something that would harm our state, I will firmly oppose him') to direct confrontation in 2026, with warnings about federal agents, denunciation of the 'Big Bad Bill,' and extended rhetoric about defending democracy and constitutional principles.
- ↔Health care framing shifted from a fiscal stabilization challenge ($122 million/year for MaineCare, MaineCare gap in supplemental budget) to a defensive posture against federal cuts, with an estimated $5 billion in lost funding over ten years, 33,000 people projected to lose coverage, and 8,500 already dropping ACA marketplace coverage.
- ↔Property tax relief and revenue sharing remained priorities in both years but shifted from a central budget theme in 2025 ($561 million for revenue sharing, $156 million additional for education) to a briefer reaffirmation in 2026 with $46 million in supplemental funding to maintain 55% education funding.
- ↔Direct payments to Maine residents shifted from a past-tense accomplishment in 2025 ($850 inflation relief, $450 energy relief) to a new active proposal in 2026 ($300 Affordability Relief checks from the Rainy Day Fund).
- ↔Education discussion broadened from primarily funding levels and higher education in 2025 to include student achievement concerns (NAEP scores, Science of Reading), school infrastructure, CTE enrollment highs, and the cellphone ban in 2026.
- ↔The overall tone shifted from bipartisan budget negotiation and fiscal caution in 2025 to a valedictory, legacy-framing address in 2026 with strong moral and political rhetoric about democracy, federal overreach, and Maine's identity.
Policy Topics Addressed
Affordability
Governor Mills proposed $300 affordability relief checks for approximately 725,000 residents from the rainy day fund, a $70 million "American Dream" housing proposal to build 825 new homes, and making community college permanently free. She detailed $1.1 billion in direct tax relief in the current budget (up from $388 million when she took office), including earned income tax credits of $650, child dependent credits up to $610, and student loan tax credits up to $2,500. She also emphasized weatherization and clean energy to reduce energy costs.
Agriculture
Governor Mills highlighted that more than 120 school districts provide locally-grown food from Maine farms through free school meals programs. She also mentioned the state's oldest housing stock needing weatherization improvements, which affects rural and agricultural communities.
Economy & Jobs
Governor Mills reported 16,200 new private sector jobs and nearly 15,000 new business filings last year, with unemployment below 4% for nearly four years. She highlighted Maine's economic growth in her first six years exceeding the entire 14 years prior and emphasized broadband connectivity reaching every person who wants a connection. She proposed making community college permanently free and investing in workforce training programs.
Education
Governor Mills highlighted Maine's highest-ever graduation rate, record CTE enrollment, expanded early childhood education, a $10 million investment in Science of Reading instruction, and free school meals statewide. She proposed a statewide bell-to-bell cell phone ban, called for making free community college permanent, and announced education funding at 55% of costs plus $46 million in supplemental funding. She also announced a new reading and math initiative built on best practices from top-performing districts.
Environment & Energy
Governor Mills addressed electricity costs, noting Maine's overreliance on natural gas for power generation. She advocated diversifying energy sources with more wind, solar, and Canadian hydro while pursuing energy storage, and highlighted Efficiency Maine Trust rebates for heat pumps, water heaters, and weatherization. She noted Maine has reduced heating oil reliance from 62% to 50% of homes and shared the story of the Lovewell family in Caribou who saved significantly through weatherization upgrades.
Government Reform
Governor Mills emphasized the state's credit ratings being upgraded to the second highest possible rating, with agencies citing 'strong fiscal governance.' She highlighted connecting over 250,000 homes and businesses to internet through broadband investments and proposed making community college free permanently as a structural reform.
Healthcare
Governor Mills warned that federal healthcare cuts would cause upwards of 33,000 Mainers to lose access to healthcare, with 8,500 already abandoning insurance due to lost ACA subsidies. She proposed $2.25 million to replace federal cuts to Planned Parenthood and Maine Family Planning, and called for universal healthcare as 'an idea whose time has definitely come.' She also highlighted Medicaid expansion providing access to nearly 230,000 people.
Housing
Governor Mills proposed a $70 million "American Dream" housing package including $17.5 million for two pilot programs to build 530 new homes and apartments for middle-class families, plus $52.5 million to increase investments in housing programs that would trigger $15 million in federal matching funds, totaling 825 new homes. She highlighted $315 million authorized for housing during her administration — nearly five times more than 2000-2018 — and the Mobile Home Preservation fund protecting mobile home parks from out-of-state corporate purchases.
Immigration
Governor Mills delivered a forceful defense of immigrants, declaring "if you seek to harm Maine people, you will have to go through me first." She condemned "masked law enforcement onto the streets of America" and federal agents who "seek to intimidate and to silence us," pledging that Maine would not be intimidated or silenced.
Infrastructure
Governor Mills reported repairing nearly 200 bridges, repaving nearly 8,000 miles of roads, and connecting more than a quarter million homes and businesses to internet. She declared that every person wanting an internet connection now has access to one through the Maine Connectivity Authority. She also emphasized energy infrastructure diversification away from fossil fuels and proposed a $70 million 'American Dream' housing proposal.
Public Safety
Governor Mills referenced the Lewiston mass shooting that killed 18 people and noted subsequent steps to prevent violence, protect public safety, and expand mental health services. She also addressed the need for cellphone bans in schools as related to student safety and mental health. Her public safety discussion was more focused on emergency response to disasters and defending against federal overreach than on traditional crime policy.
Social Services
Governor Mills proposed $300 Affordability Relief checks for an estimated 725,000 Maine residents and a $70 million 'American Dream' housing proposal to build 825 new homes. She highlighted expanding Medicaid to cover 230,000 people, proposed $2.25 million to replace federal cuts to Planned Parenthood and Maine Family Planning, and called for making community college permanently free. She noted that federal healthcare cuts could cause 33,000 Mainers to lose healthcare access.
Tax & Budget
Governor Mills proposed $300 Affordability Relief checks for an estimated 725,000 Maine people, drawn from the state's record-high rainy day fund of over $1 billion. She also proposed a $70 million 'American Dream' housing package. She highlighted increasing direct tax relief from $388 million to nearly $1.1 billion over seven years, including earned income tax credits, dependent exemption credits, student loan tax credits, and property tax fairness credits. She also committed $46 million to maintain 55% state education funding.
Technology
Governor Mills proposed a statewide bell-to-bell ban on cellphone use during the school day, citing research showing improvements in student performance, behavior, attendance, and social dynamics. She noted that more than 250,000 homes and businesses had been connected to internet through broadband investments, declaring universal access achieved. She also highlighted the state's cloud and technology modernization efforts.