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Penobscot County loaned itself millions in COVID relief funds amid budget crisis

Glenn Mower, the Penobscot County treasurer, is seen in this April 2026 photo. Credit: Linda Coan O’Kresik / BDN

For years, Penobscot County nibbled away at the $30 million in federal relief funding it received during the COVID-19 pandemic, using the money to give itself short-term loans.

The practice allowed under U.S. Treasury rules, and locally the money served as a cushion, allowing the county to forgo the tax anticipation note loan it typically takes as an advance on the year’s tax revenue, saving thousands in interest. 

But now it’s payback time.

The federal government has given the county until the end of the year to repay $4 million. And next year, county officials, who have struggled in the past to balance the books, won’t have that money to lean on.

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