Senate Passes Capital Budget For FY 26

FOR IMMEDIATE RELEASE | June 30, 2025
Contact: Sarah Fulton (302) 401-1114

DOVER — The FY 26 Capital Budget — also known as the “Bond Bill” — unanimously passed the Senate Monday evening.

Senate Bill 200, sponsored by Joint Capital Improvement Committee Co-Chairs Sen. Jack Walsh and Rep. Debra Heffernan, commits $977 million in capital investments throughout Delaware. 

“This year’s Capital Budget allocates nearly one billion dollars toward road and infrastructure improvements, school construction, state facilities improvements, state park improvements and other economic development initiatives across the First State,” said Sen. Walsh. “I thank the Controller General’s staff and my fellow members of the Joint Capital Improvement Committee for their diligence in crafting this year’s bond bill — especially as we navigate an unpredictable economic landscape.”

SB 200 allocates funding for the following initiatives. This is not an exhaustive list:

• $212.6 million to statewide transportation initiatives
• $240.3 million to state facilities needs:
  • This includes more than $113 million in statewide deferred maintenance, roof replacement, and capital improvement projects throughout state facilities. 
  • $53.5 million is allocated to critical support for statewide IT infrastructure and IT Security. 
  • $42.2 million will address maintenance needs at correctional facilities throughout the state. 
• $211.2 million to K-12 educational facilities
  • This includes $172 million for school construction projects in the Appoquinimink, Christina, Colonial, New Castle County Vo-Tech, Red Clay, Smyrna, and Sussex Tech school districts. 
  • $30 million in Minor Capital Improvement funding, which leverages over $7 million in local funds to address the backlog of maintenance projects throughout school buildings. 
  • $9.1 million for the School Safety and Security Fund, which complements another $1 million is in the Operating Budget.. 
• $90 million to our institutions of higher education
  • $30 million each to the University of Delaware, Delaware State University and Delaware Technical Community College.
• $77.3 million in economic development initiatives
  • $37.3 million toward continued investment in economic development projects through the Strategic Fund, Site Readiness Fund, Lab Space, the Transportation Infrastructure Investment Fund, Delaware Prosperity Partnership, and the Sports Tourism Capital Fund. 
  • $24.7 million for Wilmington area projects, including the Riverfront Development Corporation and various neighborhood improvements. 
  • $5 million for Downtown Dover initiatives. 
  • $10.3 million in support for bioscience and biomanufacturing.
• $72.1 million in natural resources investments
  • $16.2 million dedicated to statewide park improvements.
  • $13.1 million in Clean and Drinking Water State Revolving Funds, leveraging federal dollars to provide clean water for Delawareans. 
  • $12.1 million dedicated to statewide drainage improvements and tax ditch maintenance. 
  • $10 million to address beach and dredging needs throughout the state. 
  • $6.4 million dedicated to cover crop investments to improve water quality and soil health throughout the state. 
  • $3 million to address brownfield sites across the state. 

SB 200 also allocates roughly $60 million in additional community initiatives such as affordable housing, library construction, and community reinvestment. 

Additionally — though not an appropriation in the Bond Bill — $20 million in dedicated Transfer Tax revenues have been allocated to Farmland Preservation ($10 million) and Open Space Preservation ($10 million).  

“Every Delawarean feels the impact of the capital budget. The investments that we make through it address urgent needs in our communities, such as school improvements, drainage projects, and safety initiatives,” said Rep. Heffernan, chair of the Joint Bond Bill Committee. “It also serves as a catalyst for job creation and economic growth. Taking meaningful steps to continuously improve our state’s infrastructure will not only make Delaware a safer place to live, it will also make us stronger and more prepared for the future. Bond bill investments reflect what our residents want and need, and I am proud to see this legislation move forward.”

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