Strategic Growth, Innovation, and Inclusive Investment
Delaware, one of the nation’s most business-friendly states, is entering a transformative phase in its economic development strategy for 2025–2026. Under the leadership of Governor John Carney, the First State is aligning its fiscal priorities, infrastructure initiatives, and innovation-driven programs to create a sustainable and inclusive economic future. With a record $7 billion fiscal year 2026 budget proposal, the state is doubling down on its commitment to job creation, community revitalization, and future-ready infrastructure, including broadband expansion, clean energy, and site development.
This article explores the strategic focus of the Delaware Governor’s Office and the Delaware Division of Small Business on key economic growth drivers: workforce development, site readiness, technology infrastructure, clean energy investment, housing, and public-private partnerships.
Strategic Investment Through the FY 2026 Budget
Delaware’s FY 2026 budget proposal by Governor Carney emphasizes broad-based investment in economic resilience. Among the $7 billion in planned spending, over $60 million is directly allocated for economic development, including:
- $34.7 million for the Delaware Strategic Fund, a critical resource for businesses looking to expand operations, relocate to Delaware, or create new job opportunities within the state.
- $10 million for the Site Readiness Fund, which supports the preparation and modernization of commercial and industrial properties for rapid development and occupancy.
- $10 million for the Transportation Infrastructure Investment Fund (TIIF) to accelerate priority infrastructure projects that unlock private sector development.
- $3 million for Riverfront redevelopment in Seaford, transforming underutilized urban space into a vibrant economic corridor.
These investments align with Delaware’s strategic goal of being development-ready while fostering high-impact partnerships with developers, municipalities, and industry stakeholders.
Site Readiness and Industrial Expansion
With the rising demand for shovel-ready industrial properties, Delaware’s Site Readiness Fund ensures that critical sites across the state are properly equipped with water, sewer, roads, and digital infrastructure. This initiative is designed to reduce the lead time for companies seeking relocation or expansion opportunities.
In 2025, projects supported by this fund include:
- Revitalization of Seaford’s Nylon Capital Shopping Center into a mixed-use development with residential, commercial, and green space components.
- Upgrades to industrial parks in Kent and Sussex Counties, where manufacturing and logistics demand continues to rise.
- Strategic partnerships with municipalities to redevelop brownfield sites and infill urban zones for commercial redevelopment.
- Delaware’s approach is not just reactive to market needs—it is anticipatory, making the state more competitive on the national stage for site selectors and economic developers.
Broadband Expansion: A Fully Connected Delaware
In 2025, Delaware continues its journey to becoming the first state in the nation with universal broadband access. Through public and private partnerships, the Carney administration has expanded fiber and wireless infrastructure to over 5,600 previously unserved or underserved homes and businesses.
The broadband initiative includes:
- A $56 million investment through American Rescue Plan Act (ARPA) funds.
- Collaborations with broadband providers like Comcast and Verizon to deploy fiber-to-home connections.
- A mapping initiative to track and eliminate remaining digital deserts, particularly in rural Kent and Sussex Counties.
These efforts enable remote work, e-learning, telemedicine, and digital entrepreneurship—fundamental pillars of a resilient 21st-century economy.
Clean Energy, Sustainability & Infrastructure
Delaware’s long-term economic sustainability strategy includes robust investment in green energy, transportation electrification, and environmental stewardship. Key goals by 2026 include:
- Transitioning 25% of state government fleet vehicles to electric.
- Investing in EV charging infrastructure along major corridors including I-95 and Route 1.
- Expanding solar energy access through community solar programs targeting low- to moderate-income households.
The Delaware Prosperity Partnership (DPP) also works closely with clean energy startups and companies to establish operations in the state. These green investments are aimed at diversifying the energy economy while meeting climate resilience goals.
Workforce Development and Innovation
In tandem with its physical infrastructure, Delaware is investing in people. The Delaware Technical Community College system and universities are partnering with the Department of Labor to expand career pathways, apprenticeships, and upskilling programs in advanced manufacturing, healthcare, logistics, and IT.
Workforce development initiatives include:
- Pathways 2.0, which expands high school-to-career programs in collaboration with employers statewide.
- The Delaware JobLink Portal, enhanced in 2025 for better employer-employee connectivity.
- Incentives for companies that hire and train within Opportunity Zones or economically distressed communities.
This workforce-centric approach is designed to attract companies needing a skilled, ready-to-work labor force while reducing unemployment and underemployment rates.
Housing and Community Revitalization
Affordable and workforce housing is increasingly viewed as an economic development priority. Delaware’s 2025–2026 initiatives support mixed-income housing projects across all three counties, particularly near employment centers.
Governor Carney’s budget includes:
- $30 million for the Affordable Rental Housing Program.
- $10 million in new homeownership support for first-time buyers.
- Support for local governments to renovate and reuse vacant properties in legacy neighborhoods.
Projects like the Seaford redevelopment and new developments in Wilmington’s East Side are designed to build stronger communities and reduce displacement.
Public-Private Partnerships and Business Incentives
Delaware’s business-friendly climate—no sales tax, simplified incorporation, and responsive state agencies—continues to attract companies in biotech, fintech, logistics, and light manufacturing.
New initiatives for 2025–2026 include:
- Tax credits for green building construction and expansion.
- Streamlined permitting for industrial projects with job creation thresholds.
- DPP’s global marketing campaign to attract FDI (Foreign Direct Investment) from Europe, Canada, and Southeast Asia.
Major corporate relocations and expansions in 2024 laid the groundwork, and now the Governor’s Office is building on that momentum to strengthen the state’s innovation ecosystem.
Key Projects on the Horizon
Several anchor projects are slated for launch or completion in 2025–2026:
- Agilent Technologies expanding its lab presence in New Castle County.
- Siemens Healthineers investing in a new diagnostics facility.
- Expansion of DE Turf Sports Complex to include indoor space for year-round tournaments, driving sports tourism.
- Wilmington Riverfront revitalization, with public art, retail, and greenway expansions that boost tourism and commerce.
Conclusion: Delaware’s Smart, Inclusive Economic Strategy
Delaware’s 2025–2026 economic development blueprint is rooted in smart investment, innovation, and inclusion. With strong leadership from Governor John Carney and collaborative implementation from agencies like the Delaware Division of Small Business and DPP, the state is well-positioned to attract and retain businesses while improving quality of life for all residents.
By prioritizing site readiness, connectivity, workforce training, sustainability, and equitable housing, Delaware is building not just an economy—but a future.
