An Act to Address Funding Needs for State Employees Affected by Federal Funding Disruptions

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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
H.P. 1336 - L.D. 1988
An Act to Address Funding Needs for State Employees Affected by Federal
Funding Disruptions
Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, uncertainty and lack of clarity surrounds the distribution of federal funding
to state agencies; and
Whereas, without federal funding, certain state agencies may have to lay off valuable
state employees; and
Whereas, if there are unavoidable layoffs, the State is bound, by contractual
obligations, to give 10 days' notice of an impending layoff to any bargaining unit employee;
and
Whereas, any state employee subject to a layoff due to lack of federal funding may
qualify for unemployment benefits; and
Whereas, state agencies will have to fund these unemployment benefits, which were
likely not accounted for in prior budgeting; and
Whereas, it is critically important that this legislation take effect before the expiration
of the 90-day period; and
Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and require the following legislation as
immediately necessary for the preservation of the public peace, health and safety; now,
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. Transfer from Reserve for General Fund Operating Capital to
Department of Administrative and Financial Services, Departments and
Agencies - Statewide program, General Fund account. Notwithstanding any
provision of law to the contrary, the State Controller may transfer up to $2,500,000 from
the balance available in the Reserve for General Fund Operating Capital to the Departments
APPROVED
JULY 1, 2025
BY GOVERNOR
CHAPTER
435
PUBLIC LAW
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and Agencies - Statewide program, General Fund account within the Department of
Administrative and Financial Services to address funding needs related to layoff
obligations for state employees affected by federal funding disruptions that are not
otherwise directly chargeable to those federal funding sources.
Sec. 2. Transfer to Department of Administrative and Financial Services,
Departments and Agencies - Statewide program, General Fund account;
special account funding. Notwithstanding any provision of law to the contrary, the State
Controller may authorize the transfer of Personal Services expenditures to address funding
needs related to layoff obligations for state employees affected by federal funding
disruptions that are not otherwise directly chargeable to those federal funding sources from
any federal fund account to the Departments and Agencies - Statewide program, General
Fund account within the Department of Administrative and Financial Services.
Expenditures may be transferred in circumstances in which federal funding has been
appropriated or awarded and has been unexpectedly removed, to help cover the 10-day
notice period that is contractually required when a state employee is laid off and to cover
shortfalls in an agency’s unemployment fund due to these unexpected layoffs.
Sec. 3. Transfer to Reserve for General Fund Operating Capital.
Notwithstanding any provision of law to the contrary, the State Controller on or before
June 30, 2026 shall transfer the unobligated balance from the Departments and Agencies -
Statewide program, General Fund account within the Department of Administrative and
Financial Services to the Reserve for General Fund Operating Capital.
Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved.