FY 2026 Budget & Capital Plans
Lawmakers approved a $6.5 billion operating budget (HB 225), investing in key statewide priorities:

• $8 million to launch an Early Literacy Emergency Fund.

• $3.2 million to ensure every Delaware student can receive a free breakfast.

• Over $85 million dedicated to offset inflationary costs and rising statewide Medicaid service needs.

Additionally, a $37 million supplemental budget (HB 226) was passed to address one-time needs, while the Bond Bill (capital budget) secured $977 million for major projects, including:

• $211.2 million for K-12 construction and improvement projects, with significant funding directed to districts like Appoquinimink, Colonial, and Christina.

• $42.2 million for critical maintenance at correctional facilities.

• $19 million for the Affordable Rental Housing Program to boost housing access.

Energy & Climate Action

• Energy Fund & Bill Assistance (HB 50): Established a dedicated fund to expand utility bill assistance for low-income households and invest in sustainable energy solutions.

• Senate Bill 159: Advanced U.S. Wind’s offshore wind project (250+ MW) by requiring permits for substations, reversing Sussex County’s earlier denial. This move reignited debate over local versus state energy authority.

• Senate Joint Resolution 3: Launched a pilot program to explore and deploy battery storage systems across Delaware, laying groundwork for a more resilient energy grid.

Government Accountability

• Office of Inspector General (SB 4 / SS1 for SB 21): Delaware will establish an independent, nonpartisan Office of Inspector General tasked with investigating fraud, waste, and corruption within state agencies.

Criminal Justice Reform

• Death Penalty Abolition (HB 35 / HS 1): Delaware took a major step toward permanently abolishing the death penalty by advancing a constitutional amendment through the first required reading cycle. A second legislative approval will be needed to finalize this historic change.

Looking Ahead

• The death penalty amendment must be approved again in the next session to become part of the state constitution.

• Lawmakers will continue to watch reserve fund health closely to ensure long-term budget sustainability.

If you’d like more information about these bills, detailed vote counts, or what to expect in year two of the session, please let us know!