Session Overview
The Maine Legislature convened on January 8, 2025, and ended its regular session on March 21, 2025. The Legislature then reconvened for its first special session on March 25 and adjourned sine die on June 25, 2025. In total, 2,397 bills were introduced with approximately 700 bills passed in both chambers.
In her State of the Budget Address in February, Governor Janet Mills (D) proposed several items including $122 million a year to stabilize the MaineCare program, making free community college permanent for recent high school graduates and lowering the excise tax and increasing the sales tax for cannabis.
During this session, one of Governor Mill’s proposals as part of the biennial budget was to elevate the Governor's Energy Office into a cabinet-level position. This proposal came in the form of LD 1270, which was enacted into law, establishing the Maine Department of Energy Resources. The new department will lead state energy policy and programs and will address issues such as affordability, grid reliability and aging infrastructure. The Department is expected to start later this year.
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Policy Areas
EPR Packaging
In 2021, Maine became the first state to pass an extended producer responsibility (EPR) law for packaging. This year, Governor Mills signed a new law, LD 1423, updating the EPR law. This measure clarifies the producer exemption provisions under that law regarding packaging material for perishable food. It states that a producer is exempt from the requirements and prohibitions of the law concerning the first 15 tons of packaging material used by the producer to contain, protect, deliver, present or distribute products that were perishable food and that were sold or distributed for sale in or into the state during the prior calendar year. The bill also revises definitions of producer, consumer, and toxicity as they pertain to the law. The bill was introduced shortly after the state Board of Environmental Protection finalized rules for the program, which is set to take effect in 2027 after years of stakeholder input. The measure received support from many industry groups during the legislative process, while some advocates for the state’s EPR law opposed the measure, stating that it watered down provisions.
Data Privacy
Representative Amy Kuhn (D) introduced LD 1822, which would enact the Maine Online Data Privacy Act. This measure would regulate the collection, use, processing, disclosure, sale, and deletion of nonpublicly available personal data. The measure has had several work sessions and will carry over in the 2026 legislative session. Similar data privacy measures were introduced last year and were lobbied by several big tech corporations. However, these proposals did not pass due to several differences in the collection of user data.
Pharmacy
Another bill that passed this session was LD 180, which prohibits insurers or a pharmacy benefits manager (PBM) under contract with a carrier, from reimbursing a pharmacy provider for a prescription drug or pharmacy service in an amount that is less than the amount the carrier or PBM reimburses a pharmacy provider affiliated with the carrier or pharmacy benefits manager for the same prescription drug or pharmacy service. The measure takes effect September 24, 2025. Additionally, LD 1580 was signed by Governor Mills on June 12 and takes effect on the same day. The bill prohibits PBMs from engaging in spread pricing. Similar provisions have passed this year in a handful of other states, including Connecticut, Illinois, and Louisiana.
Budget
In March 2025, Governor Janet Mills signed a $11.3 billion biennial budget. On June 23, Governor Mills signed a budget addition worth $320 million. Below are several major provisions that were passed in the budget:
- Provides $250,000 for each of fiscal years 2026 and 2027 for a competitive, revolving grant program for state agency renewable energy projects, purchase of electric vehicles, construction of electric vehicle charging stations and initiatives that support maintenance, upgrades and upkeep of renewable energy systems.
- Provides $17,258,000 for fiscal year 2027 to support the federal low-income housing tax credit, the rural affordable rental housing program and the affordable homeownership program.
- Increases the cigarette excise tax rate to apply to cigarettes imported into Maine or held in Maine by any person for sale at the rate of 175 mills for each cigarette, beginning January 5, 2026.
- Increases the sales tax on adult-use cannabis to 14%.
- Exempts various items from the state sales and use tax, including durable medical equipment for home use, while making other items and services applicable to the tax, including the sale of mobile telecommunications services sourced in Maine, beginning January 1, 2026.
- Prohibits discrimination by pharmaceutical manufacturers, health insurance carriers, pharmacy benefits managers (PBM) and their agents against pharmacies and health care providers that participate in the 340B drug discount program, solely on the basis of participation.
Looking Ahead
The Maine Legislature works on a biennium so bills carry over to the 2026 legislative session unless they are designated as dead or ought not to pass by the Legislature. This year's interim studies will be posted by the Office of Policy and Legal Analysis online by September as it is currently being discussed internally.