Maine pledges $35M in federal relief for budget-strapped local governments

To take some of the financial burden off Maine municipalities during the pandemic, Gov. Janet Mills said Tuesday she will set aside $35 million in emergency federal funding for local and tribal governments as a match for stretched public budgets.

Under civil disaster declarations like the one requested by Mills and approved by President Donald Trump, the Federal Emergency Management Agency usually provides 75% reimbursement of disaster costs with a 15% state match and a 10% local match.

But Mills said her administration will use some of the new federal funds allocated to cover the local match.

“Municipalities across Maine are on the front line of battling COVID-19,” Mills said in a news release. “With this action, I hope state government can somewhat ease the financial burden that budget-crunched municipalities face as we continue to confront this pandemic together. I also hope the federal government will provide greater financial support and more flexibility in the use of federal funds so that the state may be able to be more helpful in the future.”

Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services, said, “Our administration continues to look for ways to support local and tribal governments and other qualified entities during this challenging time, and we believe this is a helpful step.”

Coronavirus Relief Funds were provided to states through the Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act.

Federal law requires the funds to be used for expenses related to COVID-19 not accounted for in the most recently approved budget, and incurred between March 1 and Dec. 30, 2020.