🗳️ Legislative Recap: First Leg of the 153rd Delaware General Assembly

On June 30, Delaware’s House and Senate adjourned, closing out the first leg of the 153rd General Assembly. This session saw new leadership under Governor Matt Meyer and Lieutenant Governor Kyle Evans Gay and delivered significant action on their legislative agenda regarding; affordability, modernization, workforce development, and housing — all which impact ABC Delaware members and the construction industry statewide.

Key Budget Items
Lawmakers passed four major spending bills for Fiscal Year 2026:

  • HB 225 with HA 1 – Operating Budget ($6.58 Billion), including:
    • $20.2M for the Wilmington Learning Collaborative & Redding Consortium
    • $8.4M for mental health support
    • $8M for early literacy emergency funds
    • $85.5M for Medicaid expansion and new services
    • $40M for increased Medicaid provider rates (pending federal approval)
    • $27.5M for State Employee Health Insurance
  • HB 226 – One-Time Supplemental ($37 Million), including:
    • $3.5M for Health Care Services Contingency
    • $2M for Trauma-Informed Services
    • $3M for Teacher-Driven Projects
    • $1M for Emergency Housing & Shelters
    • $250K for a School Cell Phone Pilot Program
    • $300K for Automated Voter Registration rollout
  • SB 200 – Bond & Capital Improvements ($977 Million), funding:
    • $20M for the Community Reinvestment Fund
    • $19M for Housing Development Fund
    • $5M for Delaware Workforce Housing Program
    • $7M for Carvel State Office Building upgrades
    • $1M for the Emergency Vehicle Operation Center (EVOC)
  • HB 230 – Grants-in-Aid ($98 Million) to support local governments, fire companies, nonprofits, veterans’ groups, and paramedics.

 

Legislation ABC Tracked & Engaged On

✅ SB 21 updated Delaware’s General Corporation Law to retain our status as the corporate capital of America — critical to the state’s revenue stream.

🏠 Housing: Multiple measures passed to expand affordable housing and local development flexibility, backed by significant Bond Bill funds.

🌱 Environmental:

  • HB 210 toughens enforcement and increases fines for major polluters.
  • HB 175 modernizes DNREC’s fee structure for the first time in decades raising $7.2 million in revenue for environmental programs.

đźš— Transportation Revenue:

  • HB 164 adds new registration fees for electric and alternative-fuel vehicles to help stabilize Transportation Trust Fund revenue. The bill creates $38.8 million in new annual revenues.  There will also be toll increases to all three toll roads in the state that will bring in another $91.2 million for a total of $130 million. DelDOT does not require legislation to increase tolls.

🔑 Workforce & Labor:

  • ABC Delaware continues to strongly oppose SB 63, which makes upstream contractors liable for workplace fraud violations committed by subcontractors.
  • A compromise on SB 43 with the City of Wilmington is in progress, with the city committing to the bill’s passage by January 2026.
  • ABC successfully opposed HB 57, which would have imposed burdensome requirements and misplaced liability on our industry.
  • ABC supported SB 102, strengthening the Board of Electrical Examiners to ensure high professional standards.
  • SB 176, which allows Sussex County to charge impact fees for building permits within local school districts, also passed — we will continue to monitor its local impacts.
  • HB 84, which sought to limit employers’ ability to communicate freely with employees, stalled in the House — a win for open dialogue in the workplace.
  • A proposed Personal Income Tax increase with HS 2 to HB 13 failed to advance this session but will likely resurface next year.

Executive Orders of Note
Governor Meyer signed Executive Order #1, expanding youth apprenticeships and “earn and learn” job opportunities — an ABC priority. He also signed Executive Order #10 to reestablish a leaner, more focused Workforce Development Board, aligning with recommendations made by ABC Delaware.

Surprise Labor Mandate
In a surprise last-minute move, SB 197 was introduced to require Project Labor Agreements (PLAs) for school construction projects. ABC Delaware will actively oppose this over the summer and prepare a strategy to protect open competition and fair bidding.

What’s Next
The second leg of the 153rd General Assembly begins in January 2026. All bills not fully passed remain active and can move forward next year. ABC Delaware will continue fighting for fair, pro-business policies that protect our members and strengthen Delaware’s construction industry.

Special Election, Summer 2025:
A special election will be held for the 20th Representative District, in August. The Democratic candidates include Alonna Berry, Joe Elder, Randi Meredith, Ruby Schaeffer, and Keith Steck. The Republican candidates will include Nikki Miller, who has been supported by ABC.  This is a critical race as it has the potential to shift the House of Representatives away from supermajority rule.

Stay engaged — your voice makes a difference. For more information or to reach out to our team with questions on how you can help shape the issues that matter most to your business pleased email JCohan@abcdelaware.com