The Maine Legislature convened on January 7, 2026, and adjourned sine die on April 29, 2026. The Maine legislature operates on a biennium and in total, 323 bills were introduced with approximately 287 bills passed in both chambers this year.
In October of last year, Governor Janet Mills (D) announced her candidacy for the U.S. Senate Race into her final year as governor. On January 27, Governor Mills delivered her last State of the State address as governors are constitutionally limited to two four-year terms in Maine. Among her priorities were making community college permanently free, enacting a statewide ban on cellphone usage during the day for students in public schools, providing affordability relief checks and providing funding for new and existing housing. These issues were proposed in the supplement budget, which eventually passed on April 10.
Data Centers
LD 307, which would have established a data center moratorium for a year, the first of its kind in the country, was vetoed by Governor Mills on April 24. The reason for the veto was the 2023 closure of the Androscoggin Mill which negatively affected the Town of Jay, losing hundreds of jobs in the area. Over the next two years, this town worked on a $550 million data center redevelopment project to bring jobs back to the town. The measure did not include an exemption for the Jay project, and that was why the measure was not signed, and Governor Mills encouraged the House to sustain the veto.
The Legislature returned for veto day on April 29, where the House sustained the Governor’s veto. On the same day, Governor Mills issued an executive order that establishes the Maine Data Center Advisory Council, which evaluates issues related to large-scale data centers located or proposed to be in the State. The Council must submit a final strategy report with the findings of its evaluation and any recommendations, including any proposed legislation, to the Governor and the Legislature by January 29, 2027.
Representative Melaine Sachs, (D), the sponsor to the bill, said she hoped that Maine would temporarily ban data centers so a task force could study the impacts on water quality and electricity prices. “In Maine, we have a chance to lead with foresight instead of reacting after the damage is done. We can choose a reasonable, responsible path. Pause, study and prepare. The chief executive’s veto rejects that approach.”
There are several similar pieces of legislation that are pending around the country. Michigan HB 5594 establishes a temporary moratorium through April 1, 2027, on the approval, permitting, and operation of data centers in Michigan. New York AB 10141/SB 9144 establishes a temporary moratorium on the issuance of new state or local permits for large data centers until new regulations are adopted and required Public Service Commission actions are completed. Oklahoma SB 1488 establishes a moratorium on the building or establishment of data centers in the state until November 1, 2029. Vermont SB 205 establishes a temporary moratorium on construction of AI data centers in the State to allow for the Public Utility Commission to open an investigation into the construction of such AI data centers. Virginia HB 1515 prohibits a locality from approving siting of a new data center until July 1, 2028, and the measure will carry over to the 2027 Legislative Session to be considered.
LD 713, a measure that excludes data centers from the business equipment tax exemption and the Dirigo Business Program, was signed by Governor Mills on April 23. The measure also requires the Department of Economic and Community Development to study potential financial incentives applicable to data centers and submit a report with recommendations to the Legislature by November 4, 2026. Senator Nicole Grohoski (D) said that the new law prevents data centers from taking advantage of broad-based business incentive programs that were designed with long-term, good-paying jobs in mind. “BETE and Dirigo were not designed with data centers in mind. We should not apply them by default while we take stock of what benefits data centers actually deliver and if or how we want to incentivize them.”
Healthcare
ME LD 2201, which addresses regulating the private equity ownership of healthcare facilities, was enacted on April 13. This measure establishes a process for review and approval of transactions when a private equity company, hedge fund or management services organization acquires a majority ownership interest or operational control of a health care entity. This measure originated from the Commission to Evaluate Regulatory Review and Oversight of Health Care Transactions That Impact the Delivery of Health Care Services in the State, in which this measure was one recommendation. Senator Mike Tipping (D) and Representative Michelle Boyer (D) chaired this commission.
Senator Tipping said, “In many places across the country, local hospitals and other health care facilities have been bought, gutted and closed down by private equity firms, who squeeze out every scrap of profit for their shareholders and leave people without access to care. With this first-in-the-nation law, the state of Maine will have more information about these transactions and will be able to prevent those that would harm Mainers’ access to care.”
There are several similar pieces of legislation that are pending around the country. Minnesota HF 2779/SB 2939 requires a healthcare entity to report ownership and control information to the Commission of Health. Massachusetts SB 868 prohibits a private equity company from engaging in a transaction involving a provider or provider company that it owns or indirectly owns if the transaction causes or contributes to financial strain. Rhode Island SB 2492 requires a healthcare entity to submit a written notice to the Rhode Island Attorney General and the Rhode Island Department of Health no fewer than 180 days prior to the proposed transaction date of a material change transaction. Vermont HB 583 prohibits private equity groups or hedge funds involved in-state healthcare facilities from inference with a provider’s judgment from making healthcare decisions, or exercising control over or delegating power over clinical standards, patient medical records or clinician staffing, pricing or clinical competence parameters.
Budget
LD 2212, the supplemental budget proposal, passed on April 9 after numerous hearings, amendments, and work sessions. It was signed on April 10. Below are several major provisions that passed:
- This measure makes the Maine Free Community College Program permanent.
- This measure requires a school board to adopt and implement a policy prohibiting student use of personal electronic devices for the duration of the school day, from starting bell to dismissal bell by August 1, 2026. The policy must restrict student use of cellular telephones and other personal electronic devices with Internet or cellular network capabilities.
- This measure enacts a pass-through entity tax for tax years beginning on or after January 1, 2026. The tax applies to each taxable year that the pass-through entity elects to be subject to the tax. The tax is equal to the distributive share of income of all qualified members multiplied by the highest marginal individual income tax rate.
- This measure requires the Department of Health and Human Services to cover family planning services for MaineCare members who receive services from a provider that is a prohibited provider under Section 71113 of federal Public Law 119-21 (2025) and any future similar federal law. Services provided after July 1, 2025, are reimbursed retroactively.
- This measure establishes an income tax surcharge of 2% on that portion of a taxpayer's Maine taxable income in excess of $1,000,000 for single filers, $1,500,000 for heads of households and $1,500,000 for married persons filing jointly or surviving spouses.
- This measure provides $3,163,456,645 for fiscal year 2027 for the total cost of funding public education from kindergarten to grade 12.
Looking Forward
The race for Governor in Maine has several top candidates including current Secretary of State Shenna Bellows, former State House Speaker Hannah Pingree, former State Senate President Troy Jackson, Senator Angus King III, and nephew of former President George H.W, Bush, Jonathan Bush. The Maine primary is on June 9 and the general election is November 3.
In the Maine legislature, 151 House seats and 35 Senate seats are up for election on November 3.
A special election is set for June 9 to fill the former seat of State Representative Kathy Javner (D) following her death on January 10.
The interim so far has consisted of commission, council and advocacy group meetings. Interim topics for 2026 will be available in the coming months.