Legislative Update, Week of May 26-30, 2025

The Delaware General Assembly is in recess for budget mark-Up and will return to regular session on Tuesday, June 10th.  

Events 

1. Mayoral Luncheon: Featuring Wilmington Mayor John Carney, June 15, 11:30 a.m. – 1:30 p.m., Chase Center (Registration & Event Information) 
2. 2025 State of the County, July 15, 9:00 a.m. – 12:00 p.m., Clayton Hall Conference Center (UD) (Registration & Event Information) 

Update, Friday, May 23, 2025 

Session Schedule 2025 (First Session) 

House Agenda 

Senate Agenda 

Scheduled Committee Hearings 

Recently Introduced Legislation 

Agenda Reports 
 
Key Points:  

• The U.S. House of Representatives passed the FY 25 budget reconciliation bill on Thursday, May 22, by one vote (215-214). It now heads to the Senate, where prospects are uncertain.  There are a number of provisions to which key Senators on both sides of the aisle object.  For a budget to be enacted under the reconciliation process (which allows for the adoption of a federal budget under special circumstances without the signature of the president), the House and Senate versions must be identical.  Reconciliation allows for a simple majority in the Senate, rather than the 60 votes required for cloture; however, it is not clear that there are 51 votes for the version of the bill passed by the House.  The bill includes cuts to Medicaid, SNAP (the Supplemental Nutritional Assistance Program), makes cuts to Medicaid (and includes a work requirement), raises the debt ceiling, eliminates a number of tax incentives for green energy (including the $7,500 tax credit for purchase of an electric vehicle), overhauls federal student loans (at a projected reduction of $330 billion),  extends the 2017 Trump tax cuts (which totaled $3.8 trillion and would otherwise expire at the end of the year), increases the State and Local Tax deduction to $40,000 for married couples with incomes of up to $500,000, and eliminates federal taxes on tips and overtime pay.  The bill also contains a number of additional provisions that could be challenged under reconciliation rules and some which may face more robust opposition in the Senate. 
• The General Assembly has recessed for budget mark-up. On May 27th, the Joint Finance Committee, which writes the operating and grant-in-aid budgets, as well as deciding what amount of additional revenue will be provided to the Joint Capital Budget Committee (over and above resources derived from bonds and other capital-related revenue streams), commenced votes on specific appropriations.  Work will continue into the coming week with a possible conclusion on Tuesday, June 3rd. The Joint Capital Committee will meet in June to take votes on the Capital Budget Committee and Community Reinvestment Fund (capital grant) allocations.  
• At the Monday, May 19 meeting of the Delaware Economic and Financial Advisory Council (DEFAC), the panel released positive projections for the coming fiscal year (FY 2026), which begins on July 1, 2025.  The panel added   $97.6 million to the upcoming FY 2026 budget limit, pushing the available state revenue to a record-breaking $7.08 billion.
• Legislation that would add three (3) new Delaware Personal Income Tax brackets, HS 1 for HB 13 (Lynn) was scheduled to be head at the May 22nd meeting of the House Revenue & Finance Committee.  However, the bill was not taken up by the committee at the hearing.  
• A rent control/“rent stabilization” ordinance is pending before Wilmington City Council. Wilmington City Council Ordinance #0029 (Darby) would limit annual rent increases to 3% or a rate tied to the local consumer price index (whichever is lower in a given year).   The ordinance would apply to private apartment complexes, but not owner-occupied buildings or those operated by public housing authorities.  The NCC Chamber is opposed.  

• After consultation with members and colleagues representing the American Chemistry Council, the Chamber submitted written testimony, an excerpt of which follows (key points):  
  • The ban on polystyrene contemplated in SB 130 would be the most sweeping yet enacted by a state and would impose considerable costs on manufacturers and consumers alike.  
  • By expanding the recently enacted expanded polystyrene ban on foodservice products to any product containing expanded polystyrene foam, SB 130 would impact a vast array of products across numerous sectors including (but not limited to) electronics, appliances, medical devices, industrial equipment and a packaging.   
  • Enactment of SB 130 as written would have implications for Delawarean’s cost of and access to a considerable number of products such as:  
    • laptops, televisions, appliances, and consumer electronics; pharmaceutical packaging; cold chain medical deliveries and supplies; appliances such as refrigerators, air conditioners, microwave ovens, etc.; 
  • While we note the language on lines 67 – 75 of the bill which set forth provisions for certain waivers for a one (1) year period subject to the approval of the Department of Natural Resources and Environmental Control (DNREC), we are concerned that the volume and variety of applications for such waivers would overwhelm regulators and create regulatory uncertainty. Additionally, given the increasingly complex supply chain issues occurring across sectors of the national and global economies, 12 months could prove an insufficient amount of time to find a feasible alternative to EPS.  
  • In closing, while we respect and appreciate the sponsors’ concern for environmental stewardship, we respectfully submit that SB 130, as currently written, is not the right approach. The Chamber asks that SB 130 be tabled for further discussion to allow for a comprehensive review and informed deliberation regarding the scope and impact of the legislation; and to permit a discussion of alternatives.   

• The sponsor, Senator Paradee indicated at the hearing that he intends to develop an amendment to clarify the intent of the legislation, which would narrow the scope to food service products.  The Chamber thanks the Senator for his efforts and willingness to amend the bill. 
• The NCC Chamber is grateful to the lobbyists representing ACC for their assistance in understanding concerns with the legislation.  

• SEPTA has proposed cutting half of its service by January 2026, including the Wilmington/Newark line, to address a massive structural budget deficit. That regional rail line is a major artery connecting Wilmington suburbs to the greater Philadelphia area, allowing hundreds of people from both markets to travel to work for a low fare of $10 or less. 
• After the cuts, that same trip to Wilmington and back will cost consumers who don’t have a car upwards of $100 roundtrip via Uber. 
• As of right now, SEPTA plans to reduce midday service to the Wilmington/Newark line in August from hourly to every two hours. The transit agency would also eliminate some peak and evening service, as well as one weekend trip. Other adjustments include a 21.5% hike on fairs, as well as the shuttering of 50 bus routes. 
• SEPTA officials claim that the end of federal COVID-19 relief funding and increase in daily costs when ridership dropped in 2020. While ridership has been recovering since then, SEPTA has also had to deal with inflation and fuel costs as well as other issues. The transit agency had frozen management pay and cut consultants saved $30 million, though it was not enough to bridge the gap. 
• The Delaware Transit Corporation pays SEPTA $3.7 million per year for this rail service. 

• While the Chamber shares the sponsors’ concern for the unhoused in our community, the legislation is very broadly written, more sweeping than prior iterations of the bill in past sessions, and unlikely to pass in its current form. 
• We have received significant input from members across business sectors and among non-profit service providers.
• Among the chief obstacles to passage if a provision which would waive the state’s sovereign immunity (from civil liability) as well as any limited immunity enjoyed by political subdivisions (municipalities, school districts, etc.) 
• The bill also contains provisions for a private right of action (which triggers automatic opposition from the NCC Chamber and other chambers), and language awarding attorneys’ fees to successful plaintiffs, with no similar provision for defendants. 

• The NCC Chamber circulated this bill for input in its original form and then in its substitute form.  
• Due to the substantial amount of concerns expressed to us by members, we engaged via the Chamber working group process to develop amending language. 
• We submitted a mark-up with proposed amending language to the substitute to the sponsor prior to the May 6 House Labor Committee hearing where the bill was considered.  
• The sponsor indicated that an amendment is in process.
• Among the changes that the Chamber recommended was an increase in the bill’s exemption from employers with 25 or fewer employees to employers with 125 or fewer.  We indicated a willingness to consider 100 or fewer as the exemption threshold. The NCC Chamber also sought a reduction in the maximum fine from $10,000 to $2,500, and supported accommodations for listing job opportunities via a third-party site or recruiter, provisions allowing for exempting certain strategic hires, and increased protections of sensitive/proprietary business information.