DOVER, Del.- Delaware lawmakers have wrapped up the budget markup process for Fiscal Year 2026, setting the stage for a $6.1 billion operating budget proposal that incorporates elements from two gubernatorial administrations.
The Joint Finance Committee, led by co-chairs Rep. Kim Williams and Sen. Trey Paradee, completed its work Tuesday after reviewing both outgoing Governor John Carney’s proposed budget and a revised version submitted by Governor Matt Meyer.
Lawmakers used Carney’s proposal as the foundation, adding several initiatives from Meyer’s reset plan.
Among the key items approved by the committee:
At least a 2 percent pay raise for education employees, with additional raises for teachers, nurses, and non-administrative staff, in line with recommendations from the Public Education Compensation Committee
A 2 percent raise for state merit employees
$33 million to support projected growth in public schools
$1.35 million for residential lead remediation
$2 million to aid victims’ services agencies impacted by federal funding cuts
$61 million for the Other Post-Employment Benefits Trust Fund to support healthcare for retirees
$85 million for continued Medicaid coverage
$8 million for the Literacy Emergency Fund and $3 million for classroom literacy programs
$2 million in additional rental assistance vouchers
The proposal also includes funding for several new state offices, including the Office of the Inspector General, the Office of Veterans Affairs, the Office of Suicide Prevention, and the Grant-in-Aid Subcommittee. Lawmakers also approved $3 million for universal free breakfast in Delaware schools.
Officials say the committee stayed within budget growth targets and preserved reserves, maintaining the Rainy Day Fund at $365.4 million and the Budget Stabilization Fund at $469.2 million. No increases to income taxes were included.
The final budget proposal now heads to the full General Assembly for consideration.