Gov. Janet Mills (D) has signed a resolve into law directing the Maine Department of Labor (MDOL) to study the best methods for protecting the revenue generated by the state’s new Paid Family and Medical Leave (PFML) Program from ever being used for another purpose.
This stems from a bill introduced Rep. Gary A. Drinkwater (R-Milford) that sought to amend the Maine Constitution to include a provision explicitly stating that PFML Funds cannot be used for any other purpose.
The PFML Program, enacted last year as part of a spending bill, has imposed a one percent payroll tax on most working Mainers and their employers to fund paid leave for all employees statewide, with benefits not scheduled to begin until May of 2026.
Mainers began contributing to the program on January 1 of this year, sixteen months ahead of when benefits are first scheduled to become available.
[RELATED: Maine’s New Paid Leave Rules — Here’s What Businesses and Workers Should Expect]
Because future legislatures could potentially approve legislation repurposing some of this revenue for other ventures, Rep. Drinkwater sought a constitutional amendment in hopes of barring that possibility.
“Let’s protect this money so we can’t raid that fund,” Drinkwater urged during his brief testimony to the Committee earlier this year.
Following a May work session, nearly all members of the Legislature’s Labor Committee voted in support of the amended version of this bill that converts it into a study resolution.
The only lawmaker in opposition to the bill’s passage was Rep. Laurel Libby (R-Auburn).
[RELATED: House Rejects Even More Amendments to Maine’s Paid Family and Medical Leave Program]
Under this resolution, the MDOL will need to submit a report to the Labor Committee by January 15, 2026, including any recommended legislation.
After being approved by both the House and Senate without a roll call vote, Gov. Mills’ finalized it with a signature on June 10.
