Republicans in the U.S. House on Thursday narrowly enacted President Donald Trump's sweeping domestic policy bill that was opposed by Maine's entire congressional delegation. Now, Gov. Janet Mills is warning that it could blow a hole in the state's balanced, two-year budget.
Mills had previously said the bill and its sweeping cuts to Medicaid and food assistance would have devastating consequences for Maine's people and hospitals.
On Thursday she added that it could also require big changes to a state spending plan that went into effect July 1, saying it cannot absorb the costs the bill shifts to the states.
"As I have previously warned, like many other states, the State of Maine simply cannot absorb the substantial shift in costs that this bill will place on the backs of our children, families, seniors, and veterans to finance a tax cut for the very wealthy," she said in a statement. "In the coming weeks, my Administration will review the final language of this bill to determine the full scope of the damage that it will cause to our state, including its impact to our otherwise balanced state budget."
Other governors around the country have expressed similar warnings as the bill neared final passage.
Maine is required by law to have a balanced budget and the loss in federal support is expected to have a profound effect on its Medicaid program, known as Mainecare. The Kaiser Family Foundation estimates that the cuts will result in a 10% reduction in Maine at a cost of roughly $3.4 billion over 10 years.
Lawmakers would have to patch that hole, but it's unclear when they will because Republicans delayed implementation of the cuts until after the 2026 midterm elections.
