FOR IMMEDIATE RELEASE | June 26, 2025
Contact: Sarah Fulton (302) 401-1114
DOVER — With bipartisan support, the Senate voted to pass a $6.5 billion operating budget for FY 2026 and a $37 million supplemental budget package on Thursday.
“Each year, the budget-writing process presents us with new challenges. As one of the leaders of this committee, I have always strived to prioritize efficiency and effectiveness. I believe this year’s budget accomplishes these goals,” said Sen. Trey Paradee, co-chair of the Joint Finance Committee. “Despite the uncertainty of our state’s economic forecasts in the coming years — coupled with impending threats from the federal level — we have balanced our budget without raising income taxes. We stayed within Governor Meyer’s budget reset growth benchmark, and we maintained the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million.”
The spending plan for July 1, 2025 to July 1, 2026 reflects a commitment upholding the values that Delawareans hold dear — support for state workers, robust investments in health care, and significant resources to strengthen schools across the First State.
House Bill 225 invests significant resources in Delaware’s students and schools, giving educators a base 2% raise, with teachers and classroom staff receiving additional raises as recommended by the Public Education Compensation Committee, continuing on the promise of starting teacher salaries at $60,000.
Other education-related investments in the operating budget include:
- $33.1 million to cover projected growth in 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
HB 225 also demonstrates a commitment to transparency and good governance through the creation of an Office of the Inspector General, a state-level Department of Veterans Affairs, and a Grant-in-Aid Subcommittee dedicated to thoughtfully evaluating our State’s investments in non-profits. It also includes funding for a number of criminal justice related initiatives, including probation reform, the Richard “Mouse” Smith Compassionate Release Act, and the Victim’s Bill of Rights.
Some additional highlights in the operating budget feature:
- $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
- $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, House Bill 226, passed unanimously. It 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.
“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 the Governor’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.”
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