Gov Carney Releases Final Recommended Budget for FY 2026
Governor John Carney released his FY 2026 recommended budget on Monday. This budget, his final, focuses on investments in public education, health care and housing while adhering to sound budgeting principles that have led to a $469.2-million Budget Stabilization Fund – over and above the State’s Rainy Day Fund.
Additional information from Governor Carney:
“My final recommended budget continues to responsibly invest taxpayer dollars where they will have the biggest impact,” said Governor Carney. “We’re continuing to meet our commitment to raise educator salaries, address rising health care costs, and invest in needed affordable and workforce housing. I’m proud of the work we’ve done together to invest more than $760 million in public education, double child care funding, bring good-paying jobs to our state, and protect our environment – all while going from a nearly $400 million deficit in 2017 to over $450 million in our Budget Stabilization Fund. For eight years, I’ve been focused on getting our fiscal house in order, and I want to thank the members of the General Assembly for their partnership in this work. It has been an honor serving as your Governor.”
Fiscal Year 2026 Budget Highlights
- General Fund operating budget totals $6.6 billion
- Maintains $469.2 million in the Budget Stabilization Fund
- Funds year two of the Public Education Compensation Committee’s recommendations for public education salaries
- Boosts Opportunity Funding to meet enrollment growth
- Invests in successful economic development programs
- Includes $40.5 million for affordable and workforce housing
- Allocates $85.5 million for Medicaid growth in Delaware
Investing in Delaware’s Children
- $129.1 million for child care, including $76.9 million for Purchase of Care and $15.8 million for the Early Childhood Assistance Program (ECAP)
- $66.8 million in Opportunity Funding to support low-income students and multilingual learners
- $81.8 million to increase public education salaries, including $60.0 million to implement the second year of the Public Education Compensation Committee recommendations and $14.8 million to provide annual step increases
- $33.9 million for public education enrollment growth
Housing
- $40.5 million in housing investments, including:
- $16.0 million for the Housing Development Fund and Down Payment Assistance Program
- $4.0 million for the Strong Neighborhoods Housing Fund
- $8.0 million for the Workforce Housing Program
- $12.5 million to support statewide Urban Redevelopment Initiatives
Economic Development
- $347.9 million for higher education institutions, including $31.5 million for SEED and Inspire, plus an additional $80.0 million for campus improvements and capital needs
- $60 million in economic development investments, leveraging over $150 million from federal and private partners including:
- $34.7 million for Delaware’s Strategic Fund and other successful job-creation programs
- $5.0 million for the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL)
Supporting Delaware’s State Workforce
- $65.8 million to provide a 2.0% increase for state employee salaries
- $61.3 million to support OPEB Trust Fund liability
