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PROPOSEDPROPOSED BILLMaineMEDIUM IMPACT

Proposal for Political Subdivisions to Enter Federal Bankruptcy

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PROPOSED LEGISLATIONThis bill has been introduced but has NOT been signed into law. Legislative proposals may be amended, passed, or fail to advance. This is not current law.

This proposed bill would allow political subdivisions in Maine, such as cities and towns, to enter into federal bankruptcy proceedings. Previously, only individuals, businesses, and certain other entities were eligible for federal bankruptcy protection under existing law. If enacted, this change could affect local governments facing severe financial distress by providing them with a legal framework to restructure debts. The bill has not yet been signed into law, so no action is required from the public at this time.

Published April 6, 2026
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Legal Information Only. This is general legal information, not advice for your specific situation. Consult a licensed attorney before taking action.