Maine’s Democratic governor and U.S. Senate candidate aims to use funds from the state’s Rainy Day Fund to build 825 dwellings, including 530 new homes and apartments for middle-class families.
Gov. Janet Mills used her "State of the State" address to unveil economic initiatives from housing to $300 relief checks for eligible residents while pledging to defend American democracy "with everything I have."
Her housing plan would use money from Maine's record $1 billion-plus Rainy Day Fund to build 825 dwellings across the state.
“We can’t give up on the American dream, not when young families can’t find a house that fits their budget,” Mills told lawmakers in Tuesday night’s 65-minute speech — her eighth and final address to a joint session of the Legislature.
“Not when retirees want to downsize but can’t find a smaller place at a reasonable cost. Not when businesses are losing new workers because they can’t find housing nearby,” she said.
The plan calls for using $17.5 million in one-time allocations from the Rainy Day Fund administered by MaineHousing to develop 530 new homes and apartments for middle-class families.
Mills also suggests using an additional investment of $52.5 million from the fund to enhance existing housing programs, which is expected to generate at least $15 million in federal matching funds.
Mills, a Democrat elected Maine’s first woman governor in 2019, is running for U.S. Senate in 2026 against incumbent U.S. Sen. Susan Collins, R-Maine.
While much of her 20-page speech read like a campaign stump speech — "you're welcome” was a common refrain — the former prosecutor went off script at times, including remarks on reproductive rights that prompted several Republican lawmakers to walk out of the chamber.
She also railed against federal law enforcement officials "stoking fear in our communities," including Maine, and arresting people "not on public safety grounds but based on quotas, on access, on religion, on ethnic origin."
Firing back at retorts from the floor during her speech, Mills at one point muttered a comparison to the British House of Commons.
$300 relief checks
The economy was a central focus of the governor's remarks.
To ease the pain for individuals and families, Mills is proposing sending $300 “Affordability Relief” checks to eligible households.
Funds would come from the Rainy Day Fund to help households defray the costs of goods and groceries “that are increasing because of tariffs and other circumstances beyond our state’s control," she said.
Mills also railed against high electricity and health care costs and repeated her plea — included in her biennial budget proposal earlier this month — to make permanent free community college.
Criticizing the federal government’s “backward policy” to cut billions in health care funding over the next decade, Mills said that “nothing short of universal health care is acceptable,” and an idea “whose time has come.”
Republican response
In pre-recorded responses to the speech, Republican leaders questioned the governor’s approach while mentioning some of the same economic pain points.
“The governor and I agree on one thing — Maine people are struggling,” said Senate Minority Leader Trey Stewart, R-Aroostook. “Where we disagree is why, and what comes next.”
House Minority Leader Billy Bob Faulkingham, R-Winter Harbor, said that many traditional industries are struggling to survive amid "high taxes, high energy costs and endless regulation."
Call to action
Mills wrapped up her speech with an emotional pledge to defend the Constitution during "a dangerous moment" in history and "defend our democracy with everything I have."
She also expressed hope in the people of Maine as the North Star in the darkness that “will always help us find our way home" and cited several examples of courage and kindness.
