Legislature’s Adjournment Comes with Federal Funds and a Strong Veto Pen


The First Special Session of the 130th Maine Legislature officially adjourned on Monday. Legislators convened to address the Governor’s vetoes and pass another supplemental budget authorizing more than $1 billion in federal pandemic relief funds spending.

Members of the Appropriations and Financial Affairs Committee were tasked with allocating Maine’s share of the funds from the American Rescue Plan Act. Governor Mills strongly urged the committee to come up with a bipartisan plan that could achieve a 2/3rds vote of support from the legislature. Despite agreeing on an overwhelming majority of items in the spending package, the committee and legislative leaders were unable to come to a full agreement. Governor Mills expressed her disappointment but signed the bill into law anyway. By failing to achieve a 2/3rds threshold, the administration must wait 90 days after adjournment for the law to go into effect. Had 2/3rds support been achieved, the funds would have been available immediately.

The spending package includes $80 million to replenish the Unemployment Trust Fund, though Republicans preferred a replenishment of $100 million. Without new funds, unemployment insurance rates were likely to increase. Employers of heavily impacted businesses may have access to another $20 million in grants aimed to help them rebound from pandemic losses. An additional $21 million will be used to expand broadband in Maine, $50 million for construction of new affordable housing, and $50 million for weatherization and home efficiency programs.

The most notable veto from the Governor was issued on a proposal to create a state-owned electric utility provider. In her veto, Governor Mills expressed frustration and harsh criticism of Maine’s two largest electricity providers, Central Maine Power and Versant. Both companies are owned by foreign businesses. Even though the Governor’s veto was upheld by the Legislature, proponents have vowed to continue their fight and potentially launch a people’s referendum to accomplish their goal.

Governor Mills demonstrated that her veto pen is very strong. All vetoes were sustained by the Legislature. This is a sharp contrast from her predecessor, Governor LePage. He used his veto power frequently, but experienced several overrides from the Legislature, including an override on a credit union state charter update in 2017.

Recently your League’s Governmental Affairs team provided an update during a Credit Union Town Hall on July 12. A recording of this discussion is accessible on the League’s website. With the Legislature now in adjournment, the Governmental Affairs team will be finalizing an end of session report in the coming weeks.