Hundreds of Thousands to Receive $300 Payment Under New Proposal

With grocery bills climbing and tariff-driven price increases hitting household budgets across the country, some states aren't waiting for federal relief. Maine Governor Janet Mills has proposed one-time $300 "Affordability Relief" checks to help residents supplement their income and manage the rising cost of everyday goods.

The payments, now passed by the Legislature and signed by the governor, represent one of the more direct state-level responses to cost-of-living pressures so far in 2026.

Here's what you need to know about who qualifies, how it would be funded, and what the debate around it looks like.

Why the checks are being proposed

Mills tied the proposal directly to tariffs. In a radio address, the governor said the payments were intended to "offset, in some small way, the cost of goods and groceries that are increasing because of tariffs and other circumstances beyond our state's control."

The proposal is part of a broader "affordability agenda" Mills announced during her January State of the State address — one that also includes funding for housing construction and making free community college permanent. A poll released around the same time found that 75% of Mainers said affordability was a top issue.

Who qualifies?

The income thresholds were tightened during the legislative process from Mills' original proposal. The payments will now go to people who file a Maine tax return in 2025 and make less than $50,000 as a single filer or under $100,000 as a couple filing jointly.

The payments are not garnished for debts owed to state agencies, and the state is seeking an IRS ruling to exempt them from federal taxes.

How many people would receive payments?

The number of eligible recipients shifted as the budget evolved. Mills originally proposed $300 for approximately 725,000 Mainers, but that number was cut down to roughly 514,000 people during the budget process by tightening the income limits.

At the lower end, the total cost of the checks comes to approximately $155 million.

How would it be funded?

The payments draw on Maine's Budget Stabilization Fund, commonly referred to as the Rainy Day Fund. The fund hovers at the current statutory maximum of roughly $1 billion, an increase of more than $820 million since Mills took office in 2019.

The final version of the budget took more than $290 million out of the fund overall, including about $155 million for the checks alone, with other major items including more than $50 million for housing and $22 million for the MaineCare stabilization fund.

A new tax on top earners helps foot the bill

Alongside the relief checks, the Legislature included a new tax on high earners. This is something Mills had opposed throughout her tenure before ultimately agreeing to support it as part of the broader budget deal.

The proposal would impose a 2% surcharge on annual income above $1 million. Legislative analysts estimate the surcharge would apply to roughly 0.4% of Maine taxpayers and generate close to $100 million in revenue in fiscal year 2027, with about $150 million over two years.

Supporters say the revenue helps fund ongoing state services without continued reliance on one-time reserves.

The political debate

The proposal has exposed fault lines on both sides of the aisle.

Republican lawmakers decried the checks as attempts by the governor to "buy votes" for her U.S. Senate campaign and called on Democratic lawmakers to adopt federal tax changes included in the "One Big Beautiful Bill" signed by President Trump.

Some Democrats also expressed reservations. One state senator warned that "the Legislature should never be in a position where we're seen as buying votes, giving out checks in an election year."

Supporters of the measure countered that the payments represent targeted, immediate relief for working and middle-class households at a moment when federal cost-of-living support remains limited, though Senate Minority Leader Trey Stewart, R-Presque Isle, called the budget "not a fiscally responsible document" and said, "it is not prudent or wise."

Despite the opposition, the Maine Senate approved the budget 18–16, and the House passed it 76–71, with the votes falling largely along party lines.

The broader trend

Maine is not alone in turning to direct payments as a tool for cost-of-living relief. Several states have issued one-time checks in recent years to help residents manage inflation and elevated prices. Maine itself has now issued four rounds of relief checks, totaling $1.3 billion, distributed to residents to deal with high costs.

Bottom line

If you're a Maine resident who meets the income thresholds, a $300 check won't transform your financial picture. However, it's real money that could cover a grocery run, offset a utility bill, or give you a small cushion to grow your money more by redirecting other expenses.

The budget is signed into law, and eligible residents should expect payments to be sent out sometime in late July.

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