Portland Mayor Mark Dion warned Monday night that looming federal budget cuts could strain city services while raising sharp concerns about the effectiveness of Portland’s needle exchange program, urged renewed conversations on school safety and signaling possible reforms to the city’s housing policies.
In his 2025 State of the City address, Dion said potential reductions to federal programs, including SNAP benefits, Medicare access, housing vouchers and higher Affordable Care Act premiums, would place added pressure on city finances and residents, particularly seniors and those living on fixed incomes.
He said affordability must be a central focus as the city enters budget season, warning that federal decisions “always play out on a local stage” and require strong advocacy from Maine’s congressional delegation.
Needle exchange program under scrutiny
Dion acknowledged that Portland’s needle exchange program is intended to reduce the spread of bloodborne diseases but said growing numbers of residents believe the policy is not working as intended.
He said constituents increasingly view discarded needles and open drug use as symbols of a system that enables addiction rather than interrupting it. Residents and business owners, he said, report seeing people injecting drugs in public spaces, blocking doorways or lying on sidewalks, conditions that have eroded public patience and confidence.
Dion urged the Health and Public Safety Committee to revisit the city’s needle exchange transaction ratio and reassess whether the program is effectively reducing harm or contributing to ongoing public disorder. He said the city must do more to confront open drug use and break cycles of addiction.
Call for new conversations on school resource officers
The mayor also highlighted increasing calls from parents and community members for the return of school resource officers, saying many families want safer schools and view officers assigned to school buildings as trusted members of the school community.
Dion said parents have emphasized the importance of relationship-building between students and officers and expressed concern about student safety. He said he hopes to work with the school board chair to begin a new and constructive community conversation focused on safety and the role of school resource officers in Portland schools.
Social justice housing task force and zoning reform
On housing, Dion pointed to the city’s newly authorized social justice housing task force, which he said is charged with examining how Portland produces housing and whether existing policies are achieving their intended goals.
He specifically raised questions about the city’s inclusionary zoning requirements, including whether the current 25 percent affordable housing set-aside is too high and whether the policy can be modified to better reflect the unique characteristics of individual development projects.
Dion said the task force is expected to explore whether inclusionary zoning can be adjusted to improve housing production while still meeting community affordability goals, and whether evidence supports reducing the mandated percentage. He expressed hope that the task force, working alongside the Housing and Economic Development Committee, will recommend reforms in 2026.
In full disclosure, this Maine Wire reporter is the Co-Chair of the committee.
Broader city priorities
Dion cited progress in transportation safety through Vision Zero initiatives, increased traffic enforcement and sidewalk improvements, while acknowledging staffing challenges within the police department. He also pointed to concerns over inadequate street lighting and announced a citywide assessment aimed at improving nighttime safety.
He highlighted housing approvals reaching their highest annual total in more than 15 years, while noting delays between project approval and actual construction. The city also committed financial assistance to six housing developments expected to add nearly 350 units, including a majority designated as affordable.
Additional highlights included investments in parks and recreation, climate resilience projects, sewer infrastructure upgrades, more and improved lighting throughout the city, and new public safety resources planned for 2026, including urban rangers and a downtown community policing center.
In closing, Dion thanked city employees, residents and state lawmakers for their public service, saying Portland continues to face difficult choices but remains committed to addressing them through engagement, reform and shared responsibility.
