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By Tyler Micik The first leg of the 153rd Session of the General Assembly concluded in the early morning hours today. One could characterize this session as transitional. It began with a degree of uncertainty as new leadership took shape, the Governor settled into office, and a significant number of newly elected legislators began to navigate their roles amidst shifting local, national, and global dynamics. What started as a relatively slow legislative pace quickly picked up with the introduction of Senate Bill 21 (later substituted with SS 1 for SB 21), which updated Delaware’s General Corporation law with the intent to preserve the state’s competitive edge as the premier jurisdiction for business incorporation. The proposal stirred debate on a national level but was signed by the Governor one month later. Ultimately, more than 400 bills were introduced during the 2025 legislative session. The State Chamber prioritized 29 key bills by taking formal positions, gathering feedback, testifying at hearings, and proposing amendments to ensure the unified voice of Delaware’s business community was heard. Some significant bills worth highlighting include personal income taxes (HS 2 for HB 13), pay transparency (HS 2 for HB 105), DNREC’s permitting fees package (HB 175), and a package of utility bills (SB 59, 60, and 61). Through thoughtful collaboration with a broad range of stakeholders and policymakers, the State Chamber defeated changes to Delaware’s personal income tax structure, secured amendments to the pay transparency bill to more accurately reflect the operational realities of small businesses across the state, and negotiated more measured fee increases within DNREC’s proposal—contingent upon Secretary Patterson’s commitment to enhancing permit processing times and fostering a culture shift within the department. These proposals are proof that when the business community and policymakers thoughtfully engage with each other, the end result is more balanced legislation. The General Assembly also passed a $6.5 billion operating budget for FY26 (HB 225), along with a $37 million one-time supplemental budget (HB 226), which was signed by the Governor. This represents a 7% increase over the current FY25 operating budget and nearly 25% budget growth over the past three years. Some policymakers voiced concerns about the sustainability of this growth, warning that if revenues soften in the future—as the Office of Management & Budget has recently presented—the State may need to rely heavily on its Budget Stabilization Fund ($469.2 million) and Rainy Day Fund ($365.4 million), potentially exhausting them in the process. Below is the full list of bills that the State Chamber engaged on. While some of these bills saw a great deal of collaboration and thoughtful consideration, others did not, and I’d be remiss not to touch on them. Proposals like SB 63 (general contractor liability) and SB 197 (public works contracts) are deeply concerning. SB 63 unfairly imposes financial and legal responsibility on Delaware contractors for the actions of their subcontractors—an approach that is impractical, potentially unconstitutional, and fundamentally misguided. We, and others, are urging the Governor to veto the bill. Similarly, SB 197 mandates the use of Project Labor Agreements (PLAs) on public school construction projects across the state. The State Chamber opposes the bill for two primary reasons: first, PLAs limit competition and exclude qualified local contractors—including small, minority-, and women-owned businesses—based on organizational membership; second, they often necessitate hiring out-of-state labor for specialized work not performed by union shops in Delaware, bypassing skilled local workers. This bill will place Delaware at a competitive disadvantage. OVERVIEW OF KEY BILLS:
Bills Signed by the Governor and Resolutions
Bills Headed to the Governor for Signature
Bills That Didn’t Make it Through This Year
* failed to be released from Committee and will not carry over to 2026 WHAT’S NEXT?
The General Assembly will be on recess until January 13, 2026. This fall will be an important time to continue discussion on bills that are still pending consideration and will carry over to next year, such as HB 57 (home construction contracts), SB 194 (warehouse worker protections), and SB 197 (public works contracts), among many others already introduced. It is also likely that a minimum wage increase will be proposed. The ‘off season’ is also a time for the business community to identify challenges and problems so that ideas for solutions can be explored and proposed. The State Chamber will be sending its annual survey out later this summer to identify key issue areas and help build our 2026 policy priorities. Feedback from our members ensures topics like regulations, workforce, the cost of doing business, health care, and more continue to be prioritized. The State Chamber’s advocacy work is twofold: we remain committed to organizing the business community’s voice and serving as a bridge to policymakers. There is a shared commitment to grow the state’s economy and increase prosperity for all Delawareans. While there are sometimes disagreements on exactly how to do that, when all parties sit down at the table together, policy decisions no longer stand in isolation and the outcomes strengthen our shared future.
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