 Contributed by Offit Kurman On February 20, 2026 the U.S. Supreme Court issued a landmark decision in Learning Resources, Inc. v. Trump holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision invalidates the reciprocal tariffs and trafficking/immigration tariffs imposed in 2025 under IEEPA and confirms that the power to impose tariffs lies with Congress. The Court did not prescribe a refund mechanism; that responsibility now falls to the U.S. Court of International Trade (CIT) and U.S. Customs and Border Protection (CBP). Within hours of the decision, the Administration imposed a new 10% tariff under Section 122 of the Trade Act of 1974 (now 15%), effective February 24, 2026, and limited to 150 days (absent congressional action). This creates two immediate opportunities:
What Changed: 1. IEEPA Tariffs Invalidated The Supreme Court ruled that IEEPA does not authorize tariff imposition. IEEPA tariffs imposed in 2025 are unlawful ab initio. Refunds are not automatic. Importers must act. 2. Section 122 Tariffs Now in Effect
This is a temporary bridge. Section 232 (tariff imposed for national security) and 301 (tariffs imposed on foreign products to counter unfair trade practices) actions may follow. Who May Have a Refund Claim: Those who:
Important: Only IEEPA duties are refundable — not Section 232 or 301 duties. Downstream buyers may have contract-based reimbursement claims. Areas Where Offit Kurman Can Assist You:
Documents You Should Be Gathering:
Bottom Line: IEEPA refunds are potentially significant. Deadlines are running. Section 122 tariffs create immediate planning needs. If you import goods, manufacture overseas, distribute foreign products, or rely on cross-border supply chains, connect with Offit Kurman for consultation. Please direct any inquiries to G. Kevin Fasic at [email protected]. This post originally was posted on Offit Kurman's blog, at Tariff Litigation Updates: IEEPA Refund Claims & Section 122 Tariffs.
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 By Evan R. Park
The second leg of the 153rd General Assembly convened January 13, 2026, with lawmakers prioritizing several high-impact issues, including hospital budget oversight (SB 213 with SA1), reforms to New Castle County nonresidential property assessments (SS1 for SB 228), education funding changes aligned with the Redding Consortium’s recommendations, review of the Governor’s Recommended Budget, and veto overrides of Senate Bills 63 and 75. The Joint Finance Committee began its annual budget hearings this week, which will continue through the first week of March. There were several bills introduced in January that could impact the business community: Senate Bill 205 with Senate Amendment 1 (Sponsored by Sen. Stephanie Hansen) SB 205 with SA1 would require businesses planning to use 100 megawatts (MW) or more of electricity — or expanding operations to reach that threshold — to obtain a Certificate to Operate from the Public Service Commission. The bill was originally introduced with a 30 MW threshold, which Senate Amendment 1 increases to 100 MW. The Delaware State Chamber of Commerce (DSCC) opposes the legislation and has joined a coalition urging legislators to pause its advancement and convene stakeholders to address concerns collaboratively. The bill is currently in the Senate Energy, Transportation, and Environment Committee. Senate Substitute 1 for Senate Bill 228 (Sponsored by Sen. Dan Cruce) This substitute legislation consolidates SB 228 and its amendment to provide New Castle County additional time in 2026 to review and adjust non-residential property assessments, while still allowing sufficient time to prepare county and school tax bills due December 31, 2026. SB 228 has been released from House Administration and awaits consideration by the full House. DSCC continues to monitor its progress. Senate Substitute 1 for Senate Bill 230 (Sponsored by Sen. Spiros Mantzavinos) This substitute bill replaces the original version of SB 230 and removes language related to Section 284 of the Delaware General Corporation Law. The substitute bill clarifies which county financial officials have authority during property assessment disputes and allows them to require testimony or documents when defending how real estate values are calculated, particularly when using income-based or cost-based valuation methods. It also allows subpoenas to be enforced through the Superior Court if necessary. The bill has been released from the House Administration Committee, but action by the full House was deferred. At this time, the bill is unlikely to receive the necessary votes. DSCC is monitoring the legislation, House Bill 273 (Sponsored by Rep. Eric Morrison) HB 273 would prohibit employers from asking about or taking action on an employee’s or applicant’s political preferences or contributions, except where required by law or when political affiliation is a bona fide occupational qualification. We are monitoring the progress of this legislation, which currently is in the House Labor committee. House Bill 233 (Sponsored by Rep. Frank Burns) This bill would require regulated utilities to create a separate rate for large energy-use facilities to prevent infrastructure expansion costs from being shifted to residential and small-business customers. The bill has been released from the House Natural Resources and Energy Committee. Ongoing discussions focus on defining “large energy use” and whether legislation could impact businesses currently operating in Delaware as well as those considering locating in the state. House Bill 234 (Sponsored by Rep. Frank Burns) HB 234 is the first leg of a proposed constitutional amendment that would establish a fundamental right for employees to organize and bargain collectively over wages, hours, and working conditions, while also protecting their economic welfare and workplace safety. DSCC is monitoring the bill closely. With the recent override of Senate Bill 63, DNREC’s decision related to data centers, and the dynamics of an election year, additional labor-supported legislation is expected. HB 234 is currently in the House Administration Committee. Emerging Issue: AI Regulation Rep. Cyndie Romer is preparing legislation to regulate AI chatbots used in retail transactions, with the goal of ensuring consumers are clearly informed when they are interacting with an AI system. A primary concern for businesses is the inclusion of a private right of action for individuals who believe they were harmed during such interactions. Rep. Romer has indicated she does not plan to remove this provision. DSCC is scheduling a meeting with the bill sponsor and stakeholders in February ahead of the bill’s anticipated introduction in March. For questions or to discuss how these issues may affect your business, please reach out to me at [email protected]. I look forward to connecting with members and serving as a resource throughout the legislative session.  Bringing experience from both the public and private sectors, the Delaware State Chamber of Commerce is excited to welcome Evan Park as our new vice president of government relations. In this role, Evan leads the State Chamber’s advocacy efforts, working closely with policymakers, stakeholders, and our members and policy committees to advance a legislative agenda that supports Delaware’s business community and strengthens the state’s economic competitiveness.
Where are you from originally, and what led you to build your career in the First State after graduating from the University of Delaware? I am a Delaware native, born in Wilmington, and I spent the first 30 years of my life in New Castle County before moving downstate to Kent County. Delaware has always felt like home to me, so I never gave living anywhere else much consideration. What are you most excited about as you step into your new role with the Delaware State Chamber of Commerce? I’m most excited to join the Delaware State Chamber of Commerce team, which has a strong history of leadership and influence in addressing the needs of Delaware’s business community. You’ve held several roles in the policy field across both the public and private sectors. What initially drew you to this work, and what continues to motivate you? I was initially drawn to government and policy work because I enjoy doing work that I believe is meaningful and ultimately helps make Delaware a better place. Do you have a favorite quote or personal mantra that guides you in your work or life? “Keep the main thing the main thing.” What is your favorite spot in Delaware? My favorite spot in Delaware is the beach in the summer. The traffic can be brutal, but it’s all part of the experience. What’s something about you that might surprise people? I’m really into plant collecting. I enjoy discovering new plant varieties and trying to keep them alive. What podcast, playlist, or artist have you been listening to on repeat lately? Podcast: The Right Time with Bomani Jones. Playlist: Whatever my Apple algorithm tells me to listen to. Artist: WAR, anything WAR. If you could host a dinner party with any three people, living or dead, who would you invite and why? My dinner guests would be Barack Obama, Trevor Noah, Denzel Washington, and Shaquille O’Neal. In my opinion, they are four of the most entertaining, interesting, and successful people in the world, and they also exude wisdom. The conversation would be incredible, and I know I would learn a lot.  The Delaware State Chamber of Commerce is happy to welcome Dae'Shawn Nixon as director of the Delaware State Chamber Foundation, our newly rebranded 501(c)(3) affiliate. In this role, Dae'Shawn will lead research, programs, and initiatives that strengthen Delaware’s economic climate and advance prosperity for all Delawareans.
You’re a transplant! Where are you from? And what brought you to the First State? I relocated from Las Vegas, NV to attend Temple University before falling in love with Delaware. You have quite a diverse professional background. What most excites you about this position and how do you hope to make an impact through the Foundation’s work? What excites me most is the opportunity to connect research, policy, and people in ways that move Delaware forward. The Foundation sits at a unique intersection of business, policy, and community, and that’s where I’ve always felt most energized. I see real potential to translate data into decisions that improve economic opportunity across the state. My goal is to ensure that our research not only measures competitiveness but also informs solutions that make Delaware a place where every community can thrive. Do you have a favorite quote or personal mantra? A quote from Fredrick Douglass “It is easier to build strong children than to repair broken men.” If you could have dinner with any three people (dead or alive), who would they be? Lawrence Summers, Stacey Abrams, and Lerone Bennett Jr. What do you enjoy doing in your free time? Reading and collecting books or catching a live ball game. What’s something people might be surprised to learn about you? People are often surprised to learn that I was born in Salt Lake City, Utah, and spent time in foster care, including periods of housing instability. Those early experiences gave me an understanding of what it means to navigate systems that don’t always work for everyone. They taught me that opportunity isn’t just about access; it’s about design, accountability, and the courage to imagine something better. That perspective shapes how I approach my work today. Whether leading research or engaging across sectors, I view every project as an opportunity to build systems that expand possibilities—and to make Delaware a place where every person, regardless of their starting point, can see themselves in the state’s progress. What podcast or playlist is currently on repeat for you? Philosophize This!, Hans Zimmer, or Nicholas Britell’s Succession soundtrack.  The Delaware State Chamber of Commerce is excited to welcome Tori Will as our new membership and administrative manager. In this role, Tori will support the State Chamber’s financial operations, bookkeeping, and member relations, bringing her energy and expertise to enhance the experience of our members.
Where are you from? I was born and raised in North Wilmington, Delaware. I graduated from Concord High School in 2017. What most excites you about this position and working at the Delaware State Chamber of Commerce? I come from a family of lifelong Delawareans, so I’m really excited to be part of something that makes a difference in my state. I worked in the health care industry for several years, so this job feels like an exciting new direction for me, and I’m looking forward to learning and growing with the team. Do you have a favorite quote or personal mantra? "This too shall pass." I first heard it in an interview with Tom Hanks and it completely changed how I approach stressful situations. What do you love the most about Delaware? The seasons! When I lived in Florida, I didn’t realize how much I took having all four seasons for granted. Spring is definitely my favorite. I also love how close we are to the beach and so many other major cities; I think that's something a lot of Delawareans don't realize is such an advantage. Do you have a favorite Delaware spot? My favorite spot for food would be Mazzella’s off of Philadelphia Pike in Claymont. My sister worked there for many years, so it holds a special place in my heart. I highly recommend you try the penne alla vodka! What podcast or playlist is currently on repeat for you? I’m a huge fan of Kylie Kelce so I love listening to her "Not Gonna Lie" podcast every week. She keeps it real and I respect that! You can meet Tori next week at our Superstars in Business luncheon on November 5. Register >  By Kelly Basile CNBC’s rankings for their 2025 Top States for Business came out today and Delaware moved up from 34th to 29th. The First State moved up in 6 categories—Economy, Cost of Doing Business, Business Friendliness, Technology and Innovation, Access to Capital, and Cost of Living—but fell in two categories, Infrastructure and Workforce. When it comes to Education and Quality of Life, Delaware saw no movement. There are many forums that rank states and their competitiveness, all with areas weighted slightly differently and varying metrics factored into those scores. Therefore, it’s important to note that rankings from platforms like CNBC, CEO Magazine, Forbes, and others are nuanced. However, these rankings are what outsiders see. This, at times, can be their first impression of Delaware and what the state has to offer them as a resident, employee, or employer. So, let’s dive into the data. THE GOOD NEWS When you pour into the methodology of how the category rankings are determined, CNBC weighted Economy most heavily this year, and Delaware moved up from 10th to 4th. Analysts noted that states’ economic development marketing pitches were focusing most on touting economic strengths amid fears of recession, which led to this category being the most important. Factors measured include fiscal conditions (GDP growth, job growth, state’s credit ratings, budgets’ spending, revenue and reserves, and pension obligations), residential real estate market health (inventory, price appreciation, affordability, property taxes, foreclosure activity, etc.), and corporate makeup (major corporation headquarters and new business formations). Delaware’s economy ranked strong due to its AAA credit rating, a sizable Rainy Day Fund ($365.4 million), and the Budget Stabilization Fund, which currently stands at $469.2 million, but is increasingly at risk as spending pressures grow. Although GDP growth was flat in Q1 2025, the state’s job market remains relatively healthy with a 4.0% unemployment rate. Delaware’s historically strong corporate presence (it ranked 2nd in the country for business applications per capita in 2023) also contributed to its high ranking. As inflation persists, the Cost of Living category did increase in value this year and Delaware performed well, placing in the top 10 at 9th. The analysis acknowledges that companies and workers are seeking states where prices are stable and daily living is affordable, especially in an inflationary economy. Delaware stood out with relatively moderate property taxes. However, housing affordability has become a growing concern. Over the past four years, average home prices in Delaware have surged by 56.2%—outpacing the national average increase of just over 50%. In May 2025, the median sold price hit a record high of $399,000. Despite this sharp rise, Delaware remains more affordable than many neighboring states. Workforce continues to play a big role in scores and rankings, and while Delaware fell from 7th to 11th, the state still scored high (213 out of a possible 335 points) in this category. This is due to its strong pipeline of educated and skilled workers and ongoing investment in talent development, through initiatives like Executive Order #1 and the Delaware Pathways program. Elements factored into this score include the concentration of STEM workers, percentage of workers with college degrees (including associate degrees and industry-recognized certifications), net in-migration of educated and skilled workers, availability of training programs, right to work laws, and worker productivity based on economic output per job. As a small state of neighbors, Delaware is bringing together government, education, and the business community, and continues to support a workforce ecosystem that’s responsive to current and future employer needs. SOME CAUTIONARY TALES Delaware fell from 23rd to 31st under the Infrastructure category, which was the second most weighted score contributing to overall rankings. Factors measured here include power access and reliability, water and wastewater utilities, broadband connectivity, the state’s overall transportation system, and the time it takes to commute to work. Another factor considered is access to markets through measuring the population living within 500 miles of each state. This includes land, office, and industrial space availability, the number of ‘shovel ready’ sites, and climate change sustainability. One of the largest growing sectors in Delaware is manufacturing, and with reshoring and the rebuilding of supply chains, the analysis rightly points out infrastructure’s important roles in supporting growth. When it pertains to the Cost of Doing Business—one of our members’ top concerns as reported in our 2024 annual survey—the examination measured each state’s ability to ease business expenses (including incentives and tax breaks), tax competitiveness, wage and utility costs, and more. Here, Delaware received a D+ grade but rose from 44th to 41st. Much of this pertains to the state’s high corporate and individual income taxes (of course this is offset by attractive sales, property, and unemployment insurance taxes). The most recent legislative session saw a personal income tax bracket proposal that would have created three new top tier tax brackets. This came at a time when many Delawareans were already facing rising inflation and economic uncertainty, with higher property taxes also set to take effect. Delaware moved up slightly in this year’s Business Friendliness ranking, from 46th to 43rd, but still landed in the bottom tier with a D+ grade, signaling there’s more work to be done. Delaware’s renowned corporate franchise remains an important asset, but the state faces challenges related to regulatory complexity and land use policies. Combined with ranking 50th for corporate taxes and 42nd for individual income tax by the Tax Foundation, Delaware must consider strategies around expediting permitting and approval processes, controlling wage and utility costs, supporting emerging industries, and protecting incentives and tax breaks designed to reduce business costs. BUILDING ON STRENGTH, FACING CHALLENGES TOGETHER Many of these results are encouraging and reflect what Delaware’s business community has long known: our state is home to a strong economic foundation, a resilient workforce, and an environment where businesses and innovation can thrive. While appearing as mere data points, taking a deeper look into these rankings reveals barriers to growth, potential factors that could keep businesses from choosing to relocate here, and challenges families and workers are facing across the state. Issues like workforce availability, education, housing affordability, infrastructure, and economic stability continue to weigh heavily on Delaware’s future trajectory. Our state’s competitive position will depend on our collective willingness to confront these realities head-on. We at the Delaware State Chamber believe in the importance of a strong, vibrant private sector to create jobs and increase prosperity for all Delawareans. As bipartisan advocates, we work to support policies that promote economic growth and business success. By acting as a unified voice for business, we’re committed to leading the conversations that can address Delaware’s biggest challenges with practical, forward-thinking solutions. Our improvement in this year’s CNBC rankings is a step forward, but it also serves as a reminder—and a tool—that we can do more. A SUMMARY OF DELAWARE AND OUR NEIGHBOR’S RANKINGS  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. By Tyler Micik
With just one day remaining in the first leg of the 153rd General Assembly, activity has ramped up significantly. Of note this week, the General Assembly passed a $6.5 billion operating budget for FY26 (HB 225), along with a $37 million one-time supplemental budget (HB 226). 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 some expect—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. Several bills of interest to the business community saw movement this week. The State Chamber remains opposed to HB 210 (Pollution Accountability Act), which would increase fines up to $40,000 per day on major commercial polluters and redirect more penalty funds to surrounding communities. The bill is currently on the Senate Ready List where we expect it to pass. Also, the State Chamber is opposed to SB 46, which mandates a human observer in all autonomous trailers. The bill was listed on Tuesday’s House agenda but was never heard on the floor and remains on the House Ready List. It’s unlikely the bill will move forward this year. The Chamber has concerns with HS 2 for HB 111 (Skip the Stuff Act), which would prohibit food establishments from providing single-use food service items unless requested by the customer. Although well intended, we worry about the potential impact on small businesses. During the House Committee hearing this week, legislators and members of the public expressed confusion around the bill details and asked for clarification from the sponsor. That resulted in her filing a substitute, which we’re now requesting feedback on. HS 1 for HB 162 (Multilevel Distribution Companies), which sets new regulatory requirements on multilevel distribution companies, is also opposed by the State Chamber and was heard in the Senate Banking, Business, Insurance & Technology Committee this week but has not been released as of the time of this writing. On the utility front, SB 60, which restricts regulated utilities from using customer funds for certain unregulated activities like lobbying and political contributions, is now back in the Senate for consideration following passage in the House and the addition of House Amendment 2. The amendment removes the $125 million cap on annual capital expenses for electric distribution companies. The cap failed to reflect the complex realities of maintaining and modernizing an aging electric distribution system. Utilities must continue to make critical, long-term investments in infrastructure to ensure reliability, support grid expansion, and meet the state’s climate and energy goals. Without those investments, Delawareans risk facing more frequent and prolonged outages, and a grid unprepared for the demands of a cleaner future. The State Chamber has adopted a neutral stance on the bill based on the amendment. Lastly, SB 63, which holds general contractors jointly and severally liable for violations committed by their subcontractors, passed the House and moves to the Governor for signature. The State Chamber opposed the bill because it unfairly shifts liability for subcontractor misconduct onto general contractors, increasing their risk and insurance costs. The bill assumes all contractors are bad actors, rather than targeting those who intentionally misclassify workers. This approach could discourage development, raise construction costs, and unintentionally harm small or minority-owned subcontractors. Existing laws already give the Department of Labor the authority to enforce workplace fraud, and this bill merely delegates enforcement to general contractors without giving them the legal authority to act. As we head into the last day of session on Monday, now is the time for thoughtful and strategic action. While some bills have already passed, many others are outstanding. We urge the General Assembly to approach policy decisions thoughtfully to ensure Delaware remains a competitive place. Stay tuned for our full legislative wrap-up next week where we will unpack these developments and outline what it all means for Delaware’s business community. By Tyler Micik
Key decisions are being made as the legislative session nears its end. Although this week was shortened due to the Juneteenth holiday, it was an eventful one. The General Assembly considered several bills that the State Chamber has been actively involved in. Of note was HS 2 for HB 13, a proposal to increase personal income taxes, which failed to be released from the House Revenue & Finance Committee. We commend the legislature for thoughtfully considering our feedback and for pausing the bill's advancement. HB 175 and HB 164 passed the Senate and now await the Governor’s signature. These bills are DNREC’s and DelDOT’s respective fee adjustment packages, which the State Chamber supports. While it’s rare for the State Chamber to support fee increases of any kind, both bills represent practical, well-considered efforts to strengthen state services that support Delaware’s economic vitality. HB 175 modernizes DNREC’s outdated fee structure while prioritizing service improvements and responsiveness—outcomes our members value and expect. HB 164 strengthens the Transportation Trust Fund to address pressing infrastructure needs vital to business operations, workforce mobility, and long-term competitiveness. In the House Labor Committee on Tuesday, HS 1 for HB 181 (Paid Family Medical Leave) and SB 63 (General Contractor Liability) were released from committee and moved to the House Ready List. HS 1 for HB 181, which the State Chamber supports, would extend the compliance grace period for employer violations under Delaware’s Family and Medical Leave Insurance Program, delaying certain penalties until January 2027. SB 63, which the State Chamber opposes, makes a general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. We urge lawmakers to vote against the bill. Delaware is facing a housing crisis. Targeting the state’s long-standing, reputable contractors—many of whom are Chamber members—for the actions of their subcontractors is not a productive solution. Over on the Senate side, HS 2 for HB 105 (Pay Transparency), was released from the Labor Committee and moved to the Senate Ready List. The State Chamber appreciates Representative Ross Levin’s ongoing engagement with stakeholders to thoughtfully amend and improve the bill, and we expect it to pass. Lastly, SB 60 (Public Utilities), was the topic of a lengthy debate in the House Natural Resources & Energy Committee. At this time, the bill is being walked for signatures. We expect it to be released and moved to the House Ready List. The State Chamber testified at the hearing, requesting a removal of the $125 million cap on annual capital expenses for electric distribution companies. The cap is arbitrary and fails to reflect the complex realities of maintaining and modernizing an aging electric distribution system. Utilities must continue to make critical, long-term investments in infrastructure to ensure reliability, support grid expansion, and meet the state’s climate and energy goals. Without those investments, Delawareans risk facing more frequent and prolonged outages and a grid unprepared for the demands of a cleaner future. With just four days remaining in the session, next week marks the General Assembly’s final full week. While there are many issues still lingering that the State Chamber is engaged in, one in particular that we oppose and have serious concerns about is HB 210, the Pollution Accountability Act, which is on the House Ready List. This bill significantly increases the fines that commercial entities, small businesses, and homeowners could face for repeated violations of environmental laws or policies. Small businesses, in particular, may struggle to absorb penalties that could reach up to $40,000 per day. While we are proud of the meaningful investments our members continue to make in responsible environmental stewardship, we are concerned that these excessive fines could disproportionately impact smaller employers and create unintended financial hardship. An amendment (HA 1) was added to the bill on Wednesday to exempt the agricultural industry—likely in response to concerns raised by the sector about how natural disasters can cause environmental accidents beyond their control. We urge members of the General Assembly to hold off on moving forward with this proposal due to the significant impacts it could have on our state and hope to have a broader conversation later this year – to sit down and talk about their concerns and hopefully come to a reasonable solution that recognizes the concerns of businesses while accomplishing their goals. As session reaches its final days, we’ll continue to advocate for policies that support our members, strengthen our economy, and reflect the real-world challenges Delaware businesses face. With key legislation still on the table, now is the time for thoughtful, measured action that keeps Delaware moving forward. By Michael J. Quaranta
This is crunch time in the General Assembly as they returned to work for the final session days of 2025. The situation is always very fluid this time of year, so stay tuned because bills thought to be dead somehow find new life, and things thought to be “greased” get sidetracked. We are grateful that legislators heard the business community loud and clear about our concerns regarding personal tax increases. The letter we co-authored with the Delaware Business Roundtable served as the catalyst for other groups to sign on and engage with policymakers. At this point, the likelihood of a vote to increase personal income tax rates (HS 1 for HB 13) is diminishing by the day. While we understand the optical challenge of having roughly half of the states’ taxpayers in the highest tax bracket, we believe there are other factors to consider and better revenue options to explore. You can read the letter here. Our Environmental Committee has worked diligently with DNREC Secretary Patterson and his team on a bill to increase fees on several departmental permits that have not been adjusted in decades. The bill, HB 175, raises the permit fees the department may charge in many cases. We successfully negotiated lower increases in some cases, but more importantly, conditioned our support of the bill on the Secretary committing to improve the speed which permit decisions are made and cultural shifts within the department. It is rare for the State Chamber to support fee increases of any kind, but we did so in this case and take the Secretary at his word that he will improve the customer experience. On Wednesday, the bill successfully passed out of the House Natural Resources and Energy Committee. The State Chamber and others expressed opposition to HB 210, the Pollution Accountability Act, which was also heard in the Natural Resources and Energy Committee the same afternoon. This bill greatly increases the fines commercial businesses, homeowners, small businesses, and farms could incur for repeated violations of environmental law or policy. While we are proud of the investment our members have made and continue to make to manage air, water, and more in meaningful ways, we are opposed to fines that could reach an amount of $40,000 per day. The committee heard from agriculture interests about how natural disasters such as hurricane damage or floods could result in environmental accidents completely out of their control. The State Chamber testified and stated that passage of legislation like this will signal to the insurance industry greater risk of substantial penalties, thus elevating business liability and result in higher insurance rates for everyone. The bill did not receive the required number of votes to be released from committee; however, a few members were absent, and we expect this bill to move to the House for consideration. In the meantime, efforts will be made to amend the bill or work to push this off until next session where more time and consideration may be given to the details. Finally, HS 2 for HB 105, or the Pay Transparency Act, passed the House of Representatives earlier this week. The bill now moves to the Senate where we expect it to pass easily, and the Governor has signaled his support and intention to sign the bill into law. We compliment the efforts of Representative Ross Levin to meet regularly with stakeholders to amend and improve the bill. Delaware would join almost 20 other states with similar laws on the books, including our immediate neighbors Maryland and New Jersey, and not-too-distant neighbors New York, Virginia, and the District of Columbia. A side-by-side analysis of this bill and its comparison to the others make this new policy more practical for our members and job seekers than many of the provisions found in other state laws. |
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DELAWARE STATE CHAMBER OF COMMERCEThe Delaware State Chamber of Commerce promotes a statewide economic climate that enables businesses of all sizes and types to become more competitive in a constantly changing, increasingly global, and unpredictable environment.
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