Legislative Update, Week of October 20, 2025

Issues Discussed in this Update:  

 
1. The Federal Government Shutdown
2. DEFAC Projections, October 2025 
3. New Castle County Council Ordinance 25-025 

 
1. Federal Government Shutdown  

The federal government shutdown, which began on October 1, is entering its fourth week with no sign of being resolved in the immediate future.  The longest shutdown on record was 34 days in 2018.  A key difference in 2018 was that Congress had passed enough appropriations measures to keep certain parts of the federal government running. This Friday will be the first during this shutdown where federal workers will not be receiving paychecks.  

The New York Times reports that economists predict that each week that the shutdown continues will cause between a 0.1% to 0.2% reduction in annual economic output (between $7.2 billion and $15.6 billion).  Those numbers do not include the secondary and tertiary impact of lost or delayed wages or the impact of the loss of access to federal services, and the overall cessation of work by federal agencies.   

For more information on the government shutdown and on what resources are available to aid in navigating it, you can visit the respective webpages posted by members of the Delaware Congressional Delegation: 

 
Senator Chris Coons (D-DE) “Government Shutdown Resources” 
Senator Lisa Blunt Rochester (D-DE) “2025 Government Shutdown” 
Congresswoman Sarah McBride (D-DE) “Government Shutdown: Frequently Asked Questions”  

 
The Trump Administration has also posted information and guidance on the White House site:  

Executive Office of the President (EOP) Shutdown Plan 
Frequently Asked Questions During a Lapse in Appropriations 
In accordance with  Circular A-11, agency contingency plans for a lapse in appropriations are hosted solely on each agency’s website 

2. DEFAC Projections  

At the Monday, October 20th meeting of the Delaware Economic and Financial Advisory Council (DEFAC). the panel released a forecast indicating that the reductions in federal funding resulting from the enactment of the One Big Beautiful Bill Act (H.R. 1, 119th Congress) are likely to result in a substantial structural shortfall for Delaware state government.  

Current forecasts indicate that the state appropriations limit for FY 2027 will be $352.1 million less than the current FY 2026 number.  The State’s Budget Stabilization Fund has a current balance of $469.3 million.  However, as was indicated by OMB Director Brian Maxwell during this past February’s budget presentation, absent policy changes or budget cuts, and assuming 5% budget growth for FY 27 and FY 28 respectively, the state would need to draw $325 million from the Budget Stabilization Fund for FY 27.  In FY 28, he indicated that the state would need to exhaust the remainder of the fund and would still face a shortfall of roughly $400 million.  His guidance was based on projections from early this year and before the enactment of H.R. 1 at the federal level.  

One DEFAC meeting remains for this calendar year (December).  The revenue projections released at the December meeting will form the basis for the FY 2027 Governor’s Recommended Budget package.  

3. Ordinance #25-025 

The NCC Chamber of Commerce coordinated an effort to oppose legislation which would have increased both the time and expense involved with major projects for applicants of navigating the New Castle County land use process.   

The New Castle County Land Use Department recommended against passage of the legislation.  The NCC Chamber, Delaware Contractor’s Association, ABC Delaware, the Commercial-Industrial Realty Council, the Delaware State Chamber of Commerce and the Committee of 100 jointly opposed the ordinance.  

At the Tuesday, October 14th meeting of New Castle County Council, the ordinance was defeated.