Gov. Meyer Signs FY 2026 Operating and Supplemental Spending Bills; Bond Bill & Grants-in-Aid Bill Passed

July 1, 2025/Mari Lou

As the 2025 legislative session came to an end, Delaware Governor Matt Meyer signed the State’s $6.5-billion operating budget and $37-million supplemental spending bill for FY 2026 which began at midnight.  In other action, the State Senate reconsidered SB 200, the Bond Bill, which had been defeated last week. The $977-million FY 26 Bond Bill was passed in both chambers Monday night as was the nearly $98-million Grants-in-Aid bill. The State Senate passed HB 230 just before 1am Tuesday.  SB 200 and HB 230 are awaiting action by the Governor.  

After going down in defeat last week, the State Senate Monday reconsidered SB 200, rescinded the roll call in the Senate and voted unanimously to pass the Bond Bill. And just a half hour before midnight the State House also passed the measure with a vote of 38 to 0 with 2 absent and 1 vacancy. The measure needed a 75% vote in each chamber for passage. The $977-million Bond Bill allocates funding towards road and infrastructure improvements, school construction, improvements for state facilities and state parks and other economic development initiatives throughout the state.

Additional information on the Bond Bill from the Senate Majority Caucus:

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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