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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 proposed one-time $300 "Affordability Relief" checks to help residents supplement their income and manage the rising cost of everyday goods.
The payments were passed by the Legislature and signed by the governor, and Maine Revenue Services began mailing the checks to eligible residents in late July 2026.
Here's what you need to know about who qualified, how the payments were funded, and what the debate around them looked like.
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Why the checks were created
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 payments were part of a broader "affordability agenda" Mills announced during her January State of the State address — one that also included 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 qualified?
The income thresholds were tightened during the legislative process from Mills' original proposal. The payments went to people who filed a 2025 Maine tax return as a full-year resident by Oct. 15, 2026, were not eligible to be claimed as a dependent on another taxpayer's return, and had federal adjusted gross income below:
- $100,000 for married couples filing jointly or qualifying surviving spouses
- $75,000 for people filing as head of household
- $50,000 for single filers or people married filing separately
Maine Revenue Services also provided an online payment-status lookup where residents could check eligibility and the status of their payment.
The payments were not subject to Maine individual income tax, but MRS said they could be subject to federal income tax. If the payment was taxable federally and included in a taxpayer's 2026 or 2027 federal adjusted gross income, the taxpayer could subtract that amount on their corresponding Maine individual income tax return.
How many people were expected to 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.
Later reporting put the expected number at roughly 500,000 when the checks began going out, so estimates varied depending on when they were made.
At the lower end, the total cost of the checks came to approximately $155 million.
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How were the payments funded?
The payments drew on Maine's Budget Stabilization Fund, commonly called the Rainy Day Fund. The fund hovered near the statutory maximum of roughly $1 billion, up 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 helped foot the bill
Alongside the relief checks, the Legislature included a new tax on high earners. Mills had opposed this throughout her tenure but ultimately agreed to support it as part of the broader budget deal.
The law imposed a 2% surcharge on annual income above $1 million. Legislative analysts estimated 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 said the revenue would help fund ongoing state services without continued reliance on one-time reserves.
The political debate
The checks exposed fault lines on both sides of the aisle.
Republican lawmakers decried the checks as attempts by the governor to "buy votes" for her then-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 represented targeted, immediate relief for working and middle-class households at a moment when federal cost-of-living support remained 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."
Stewart remained Senate Republican Minority Leader.
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.
Maine Revenue Services began mailing the $300 affordability payments in late July 2026. Residents who had not yet filed their 2025 Maine tax return had until Oct. 15, 2026, to file as a full-year Maine resident and meet the filing requirement for the payment. Residents could also use the MRS payment-status lookup to check their eligibility and payment status.
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