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Home Breaking News

Senate fails to pass short-term budget to fill MaineCare shortfall

by DigestWire member
March 13, 2025
in Breaking News, World
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Senate fails to pass short-term budget to fill MaineCare shortfall
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Our political journalists are based in the Maine State House and have deep source networks across the partisan spectrum in communities all over the state. Their coverage aims to cut through major debates and probe how officials make decisions. Read more Politics coverage here.

AUGUSTA, Maine — The Maine Senate effectively killed a short-term budget Thursday that would have filled a $118 million shortfall facing the state’s Medicaid program.

The proposal needed support from at least two-thirds of senators for the money to reach health providers immediately. But a drawn-out series of motions and debates resulted in most Republicans continuing to withhold support and the chamber adjourning without a deal.

The Democratic-controlled Legislature has seen more than a month of back-and-forth bickering over the supplemental budget that initially appeared noncontroversial when Gov. Janet Mills proposed it in January to fill the MaineCare funding gap caused by increased use since the COVID-19 pandemic and a growing enrollment of more than 400,000 residents. Republicans turned on the deal last month after three of their appropriators initially endorsed it.

The top House and Senate leaders in both parties hammered out an amendment Monday that included new per-recipient limits on General Assistance to 12 months in a 36-month period and a review of “waste, fraud and abuse” in MaineCare. However, after the House gave it overwhelming support for it to take effect immediately, all but two Senate Republicans opposed it. That led Senate President Mattie Daughtry, D-Brunswick, to call her chamber back in Thursday, while the House is not back until Tuesday.

Senate Democrats could have approved the budget with a simple majority vote, but it would have meant that funding would not reach providers until 90 days after Mills would sign a deal into law. Thursday’s prolonged debates resulted in no new breakthrough. The Senate is scheduled to meet again Tuesday.

Next steps are uncertain, such as whether members will take up the MaineCare and $2 million to fight spruce budworm infestations as separate measures. It would take a two-thirds majority vote to revive the budget bill. What’s clear is hospitals and health providers will have to wait even longer for MaineCare funding.

Senate Minority Leader Trey Stewart, R-Presque Isle, previously said his caucus still wanted to see MaineCare costs reined in more, and Thursday brought more of the same disagreement on the budget, which also would require the Mills administration to give direct care workers a 1.95 percent cost-of-living increase.

The budget stalemate led the state this week to start capping and holding certain payments for hospitals and health care providers, who warned they may need to start cutting services if lawmakers keep failing to approve the short-term deal to bail out a MaineCare program that serves roughly half of the children in the state.

In a separate announcement Thursday that came as senators debated the budget, Northern Light Health announced it will close its Waterville hospital in June.

Republican senators who have also pushed for MaineCare work requirements focused more on cost concerns Thursday, with Sen. Scott Cyrway, R-Albion, calling it a “disaster of a budget that we inherited” and mentioning Democrats passing recent budgets without GOP support. Sen. Bruce Bickford, R-Auburn, asked Daughtry to commit to two-thirds support for future budgets.

But Bennett urged colleagues to back it rather than prolong the MaineCare payment delay. Democratic senators emphasized the human toll of not approving MaineCare money sooner while arguing additional policy debates are appropriate for the separate two-year budget.

Sen. Nicole Grohoski, D-Ellsworth, mentioned constituents in her district who rely on MaineCare, such as a retired couple whose son has Down syndrome.

“It is a vote like this that reminds us all that what we do here truly matters,” Grohoski said, “because if we today are not able to meet our obligations to those who rely on MaineCare, our constituents will certainly not forget the impact of our actions.”

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