DOVER, Del.- The Delaware Senate approved a $6.5 billion operating budget for the 2026 fiscal year on Thursday, along with a $37 million supplemental budget package, both receiving bipartisan support.
The budget covers the period from July 1, 2025, to July 1, 2026, and aims to fund key areas such as state employee pay, healthcare and education.
Sen. Trey Paradee, co-chair of the Joint Finance Committee, said the budget balances priorities without raising income taxes. He noted the state maintained funds set aside for emergencies, including the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million.
The budget includes a 2% base pay raise for educators, with additional increases for teachers and classroom staff. It also provides:
$33.1 million for school growth
$8.4 million to expand mental health support in schools
$8 million to create an Early Literacy Emergency Fund
$3.2 million to provide free breakfast for all students
The budget also creates new offices to increase transparency and improve governance, such as an Office of the Inspector General and a Department of Veterans Affairs. Criminal justice initiatives like probation reform and victim support are also funded.
Additional funding highlights include:
$40 million to leverage federal Medicaid funds for statewide health needs
$61.2 million for post-employment healthcare benefits for retirees
$28 million for state employee and retiree health insurance premiums
$10.2 million to support services for people with disabilities
The supplemental budget includes:
$3 million for teacher-driven classroom projects
$2 million for victims’ services agencies
$2 million for education disciplinary support
$1.4 million for a healthy food program
$1.3 million for lead prevention and remediation
Funding for conflict counsel and a cell phone pouch pilot program in schools