DOVER – The House passed a $6.5 billion operating budget for FY 2026 on Tuesday, approving a spending plan that provides a meaningful investment in our state’s education workforce, healthcare, and social safety net.
The budget, along with a $37 million supplemental spending plan, now head to the Senate for consideration.
“Every budget is about making choices – and that was especially tough this year with so much uncertainty at the federal level and forecasts pointing to slower revenue growth for the state,” said Rep. Kim Williams, chair of the Joint Finance Committee.
“Even with these challenges, we’re supporting our state’s workers and educators, giving our students the resources they need to thrive, expanding services for those who need help the most, and making sure Delawareans see their tax dollars put to good use. Additionally, we stayed within Governor Meyer’s budget reset growth of 7.37%, maintained the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million, all without raising taxes.”
The operating budget, House Bill 225, is the result of months of public hearings and meetings to review both former Governor Carney’s Recommended Budget and Governor Meyer’s Budget Reset, and to solicit input from state officials, lawmakers, and the public about how to best invest revenues.
“Each year, the budget-writing process presents us with new challenges. On top of uncertain economic forecasts for the State in the coming years, we are bracing for unprecedented cuts in federal funding later this year,” said Sen. Paradee, co-chair of the Joint Finance Committee.
“Despite this, we have balanced our budget without raising income taxes. We stayed within Governor Meyer’s budget reset growth and maintained the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million — and we’re ready for whatever the future brings.”
HB 225 includes $40 million in authorization to receive additional federal Medicaid funding, which will be used to address statewide health needs, including $10 million for long-term care facilities.
Education employees would receive a minimum of a 2% raise, but teachers and classroom staff would receive additional raises as recommended by the Public Education Compensation Committee (PECC), continuing the promise of teacher salaries starting at $60,000.
Other notable highlights in HB 225 include:
- $33.1 million to cover projected growth in our schools.
- $8.4 million to continue increasing mental health support within elementary, middle, and high schools.
- $8 million to create an Early Literacy Emergency Fund to help support our youngest learners.
- $3.2 million toward ensuring every student receives a free breakfast, regardless of income level.
- $61.2 million toward Other Post-Employment Benefits Investments, ensuring healthcare for state retirees and reducing long-term liability.
- $28 million to cover the state share of state employee and state retiree health insurance premiums to ensure existing health benefits remain intact.
- $10.2 million to increase community and special school placements for persons with disabilities and to ensure that rates for direct support professionals align with minimum wage requirements.
The one-time supplemental budget, HB 226, includes funding for various initiatives and statewide needs, including:
- $3 million to fund teacher-driven projects – allowing teachers to request funding for classroom needs as they see fit.
- $2 million to support victims’ services agencies who have seen reductions in federal funding (VOCA grant).
- $2 million to assist education agencies with disciplinary needs.
- $1.4 million for a smart food program to increase access to healthy food for vulnerable populations.
- $1.3 million for residential and childhood lead prevention and remediation.
- $1.2 million in contractual support for the Office of Conflicts Counsel.
- $250,000 to continue the voluntary middle and high school cell phone pouch pilot program to reduce classroom learning distractions.
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