Starting in 2026, most employees in Maine will be eligible for up to 12 weeks of paid time off for family or medical reasons. This groundbreaking initiative was signed into law by Governor Janet Mills as part of a supplemental budget. The program, backed by a $25 million initial investment, allows workers to take paid leave for personal illness, caring for a family member, or the arrival of a new child.

Maine now joins a dozen other states offering similar paid leave programs, a trend gaining momentum at the state level after facing roadblocks in Congress. The White House praised Maine's move, with Press Secretary Karine Jean-Pierre emphasizing the positive impact of such programs on working families and the economy. She highlighted the Biden administration's efforts to support federal workers in accessing necessary leave.

Governor Mills shared her personal experience, explaining how she understands the critical need for this program. Having navigated the challenges of caring for loved ones while working full-time, including raising five stepdaughters and caring for aging parents after the loss of her husband, she expressed deep empathy for families facing similar circumstances.

This new program will be funded by a payroll tax shared between employees and employers, with a cap set at 1% of wages. Small businesses with fewer than 15 employees are exempt from employer contributions, and companies with existing comparable benefits can maintain their current plans. Eligible circumstances for paid leave include the birth or adoption of a child, serious illness, caregiving for a sick relative, or transitioning back from military deployment.

This supplemental budget, totaling around $445 million, also incorporates several tax provisions, such as an increase in the amount of pension income exempt from state income taxes. Additional funding is allocated to double childcare worker pay and support the governor's proposed Dirigo Business Tax Incentive Plan, designed to replace the current Pine Tree Development Zones.

While initially hesitant about the paid leave proposal due to opposition from the Maine State Chamber of Commerce and other business groups, Governor Mills ultimately supported the revised bill. The combined essential services budget and supplemental budget represent a historic level of spending at approximately $10.3 billion, but the state maintains a balanced budget and a record-high rainy day fund.