Delaware’s new state budget puts education and Medicaid at the center of $6.996 billion in spending
Delaware is operating under a $6.996 billion General Fund budget for Fiscal Year 2027, with public education and health and human services receiving the largest shares of state spending. The day-to-day operating plan affects schools, Medicaid and other medical assistance programs, childcare, public employees, housing services and other taxpayer-funded programs.
Gov. Matt Meyer signed Senate Bill 335 on June 30, 2026. The law covers the fiscal year that began July 1, 2026, and ends June 30, 2027. The enacted budget is $416 million higher than the prior operating budget, an increase of about 6.32%, according to a budget account from the Delaware House Republican caucus.
What became law
Senate Bill 335 is Delaware’s Fiscal Year 2027 Appropriations Act. The Delaware General Assembly’s bill record lists the measure as signed June 30, 2026, and identifies it as Volume 85, Chapter 324. Its long title covers appropriations for state-government expenses during the fiscal year ending June 30, 2027.
The Office of Management and Budget’s FY2027 budget page lists SB 335 as the enacted operating budget and separately identifies Gov. Meyer’s recommended budget materials. The recommendation was an earlier proposal, not the spending plan now in effect.
Where the money goes
Public education is the largest spending category at approximately $2.518 billion, or about 36% of the General Fund operating budget, according to the House Republican caucus account.
The Department of Health and Social Services receives approximately $1.948 billion, or nearly 28% of the total, that account says. About $1.23 billion is designated for Medicaid and other medical assistance programs. That is not a Medicaid-only figure; it includes related medical-assistance programs administered through DHSS.
Together, the education and DHSS figures total about $4.466 billion, or nearly two-thirds of the operating budget. The allocations affect schools, healthcare providers, Medicaid recipients, families, seniors, people with disabilities and others who rely on state-supported services.
Education and childcare
The governor’s official signing announcement describes nearly $200 million in public-education investment. It says the budget includes support for Delaware’s public-school funding changes, including restoration of Division II funding and advancement of recommendations from the Public Education Funding Commission.
The announcement also says state employees and public-education employees will receive a 3% pay increase under the FY2027 budget. The effect on individual paychecks will depend on payroll timing, employment status and implementation by the relevant agency or school employer.
Families may also see changes to the Purchase of Care program. The governor’s office says the budget expands eligibility so approximately 10% more children could access affordable childcare and provides additional support for childcare providers. The statement is a projected program effect, not a guarantee that every applicant will qualify. Families still must meet program rules and follow implementation guidance.
Health services and direct care
The DHSS allocation makes healthcare and human services one of the largest areas of state-funded operations. The Medicaid and medical-assistance appropriation helps support coverage and services for eligible Delaware residents, while other DHSS funding supports programs for seniors, people with disabilities and families needing health and social services.
The governor’s signing announcement says the budget expands access to care, increases support for seniors and provides pay increases for direct-care professionals serving Delawareans with developmental and intellectual disabilities. The practical effects will depend on agency guidance, provider payments, staffing decisions and the timing of implementation.
Housing and workforce funding
The administration also says the enacted budget includes investments in housing affordability and homelessness prevention. The governor’s office describes the housing investment as the largest by any Delaware administration during its first 17 months in office. That is an administration characterization, not an independent comparison included in the budget records cited here.
The same announcement says the FY2027 budget invests more than $150 million in Delaware’s workforce, including the 3% raises for state and public-education employees. Those investments are intended to support teachers, first responders, transportation workers and other public servants, but appropriated money is not the same as money already spent or services already delivered.
What residents should watch next
The key question for the rest of the fiscal year is how agencies turn the appropriations into contracts, payroll, provider payments and resident services. Families should watch for Purchase of Care eligibility guidance and application updates. Medicaid recipients and providers should look for DHSS implementation notices. School employees and other public workers should monitor payroll information about the raises.
Residents can track the enacted operating budget through the General Assembly’s SB 335 record and the Office of Management and Budget’s Fiscal Year 2027 budget page. Those records help distinguish the final appropriations law from the governor’s earlier recommendation and provide a starting point for accountability as the state reports spending during the fiscal year.
Sources
- Delaware General Assembly bill record for Senate Bill 335
- Delaware Office of Management and Budget FY2027 budget page
- Gov. Meyer’s FY2027 budget signing announcement
- Delaware House Republican caucus budget account
Look for updates to this story
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