May 20, 2025
The Maine Department of Health and Human Services (DHHS) is closely monitoring proposed federal budget reconciliation legislation that could profoundly impact the health and well-being of Maine residents. The proposals – currently under consideration by Congress – threaten to shift billions in costs to states, limit eligibility for critical programs, and erode the infrastructure that supports affordable health care and nutrition for hundreds of thousands of Mainers.
If enacted, these changes would limit access to the Supplemental Nutrition Assistance Program (SNAP) and MaineCare, and undermine the state's health insurance Marketplace, CoverME.gov, making it harder for Mainers to get – and keep – coverage and food assistance.
What follows is a high-level overview of the significant proposed changes and their potential impacts on SNAP, MaineCare, and Maine's health insurance Marketplace. For a deeper dive into the specific impacts on each program, additional details are available in this Impact Summary document (PDF).
SNAP: Supplemental Nutrition Assistance Program
SNAP helps more than 176,000 Mainers afford groceries each month, including children, older adults, people with disabilities, veterans, and working families. In 2024, SNAP benefits generated nearly $610 million in economic activity across Maine communities.
Proposed federal budget changes would:
- Shift a portion of SNAP benefit and administrative costs to states – potentially costing Maine between $242 million and $815 million over the next decade.
- Restrict eligibility and reduce benefits for thousands of Mainers.
- Eliminate or reduce work requirement exemptions for veterans, people experiencing homelessness, and older adults.
- Roll back the 2021 benefit increase, meaning maximum SNAP benefits would only cover 15--50% of food costs for households with no income.
- End funding for nutrition education programs, like Maine SNAP-Ed, which served over 21,000 Mainers last year.
Impact on Maine People
- Veterans (5,669 individuals), people experiencing homelessness (25,203), and older Mainers (over 28,000) would be among those most affected by changes in eligibility and work requirements.
- Families could be forced to choose between food and other essentials like housing, heat, transportation, or medications.
- Children's learning, development, and health could suffer due to increased food insecurity.
- Local food pantries and retailers – especially in rural areas – would experience additional strain.
MaineCare
MaineCare provides comprehensive health coverage under Medicaid, the Children's Health Insurance Program (CHIP), and a small state-funded health coverage program to nearly 400,000 Mainers, including more than 38,000 people with disabilities and 5,000 children with special health care needs. It supports preventive care, mental health and substance use treatment, long-term services, and more.
Proposed federal budget changes would:
- Impose a penalty that would reduce federal financial participation for Maine's Medicaid Expansion population – which would shift more of the cost of coverage to the state.
- Limit access to care for thousands of Mainers by imposing eligibility restrictions and administrative hurdles.
- Restrict covered services and provider types.
- Impose a moratorium on provider taxes, which is an important and widespread Medicaid financing tool.
These proposals would compromise Maine's ability to:
- Sustain critical health services for Maine people, especially in rural areas where MaineCare enrollment is highest.
- Provide critical reproductive health care to all Mainers.
- Support rural hospitals and providers that rely on Medicaid reimbursement.
Marketplace (CoverME.gov)
Maine's health insurance Marketplace, CoverME.gov, serves more than 64,000 Mainers who don't qualify for MaineCare and don't have access to other sources of health coverage. It is a vital resource -- especially during transitions in income or unexpected life changes. However, proposed federal changes would significantly weaken its accessibility, affordability, and operations.
Proposed federal budget changes would:
- Shorten Open Enrollment from 75 to 45 days and eliminate Special Enrollment for individuals earning ≤150% FPL – removing flexible options used by hundreds of Mainers annually.
- Eliminate auto-renewals, affecting over 30,000 enrollees, and require re-verification of income, family size, and eligibility – adding complexity and increasing risk of disenrollment.
- Tighten income verification and eliminate provisional eligibility, making it harder for those with variable or seasonal income to enroll or stay covered.
- Exclude certain lawfully present immigrants from eligibility for coverage or premium tax credits.
- Remove repayment caps, increasing the chance of unexpected tax bills for lower-income Mainers and those with variable income.
Altogether, these changes would reduce enrollment, destabilize the Marketplace risk pool, and disproportionately harm rural, low-income, and immigrant communities – leading to higher uninsured rates and delayed care.
What's at Stake
The proposed federal changes to SNAP, Medicaid, and Marketplace coverage would place a heavy financial burden on Maine, with ripple effects across families, communities, and the broader economy. With limited state resources and rising demand for services, these proposals will:
- Push more Mainers into uninsured status.
- Increase food and health insecurity, particularly in rural communities.
- Increase pressure on local nonprofits, food pantries, and health systems.
- Undermine public health, drive up uncompensated care, and financially strain hospitals and providers.
- Reverse gains in reducing poverty, food insecurity, and access to care.
Looking Ahead
Maine DHHS remains committed to protecting access to food and health care for Maine people. We will continue to work with state and federal partners to communicate the real-life impacts of these proposals and to advocate for sustainable, equitable policies that promote health, well-being, and economic security for all Mainers.