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Bill

SB 268

AN ACT TO AMEND TITLE 2, TITLE 9, TITLE 19, AND TITLE 30 OF THE DELAWARE CODE RELATING TO SUPPORT FOR FEDERAL WORKERS AFFECTED BY A GOVERNMENT SHUTDOWN.

153rd General Assembly (2025-2026) Introduced by Darius Brown and 20 co-sponsors

Creates a Delaware loan fund to provide interest-free loans to federal workers affected by a government shutdown, administered by the Delaware Department of Labor.

Assigned to Administration Committee in House
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Bill Summary · SB 268

Summary of Senate Bill 268 (SB 268) – 153rd Delaware General Assembly

Purpose and Intent

  • SB 268 aims to amend Titles 2, 9, 19, and 30 of the Delaware Code to provide targeted support for federal workers residing in Delaware during a federal government shutdown.
  • The bill establishes a new funding mechanism and expands the Delaware Department of Labor’s (DOL) duties in the event of a shutdown, along with transportation and potential effects on school and state revenues.

Key Provisions

1) Federal Government Shutdown Worker Assistance Loan Fund

  • Creates the Federal Government Shutdown Worker Assistance Loan Fund.
  • Administration: The fund would be administered by the Delaware Department of Labor (DOL).
  • Purpose: Provide interest-free loans to Delaware residents who are federal workers furloughed or required to work without pay during a government shutdown.
  • Financial Implications: The bill notes the need for additional staffing and resources for DOL to implement these provisions; no specific dollar amounts are provided in the fiscal note.
  • Effective Date: Upon the Governor’s signature.

2) Expanded DOL Duties During a Shutdown

  • The act expands DOL’s duties to implement and manage the new loan program and related support during a federal government shutdown.
  • Resource needs: The fiscal note indicates that DOL may require more staffing and other resources, but no concrete resource request had been received as of the note.

3) Delaware Transit Corporation (DART) Free Transit for Federal Workers

  • Obligation: DART would provide free transportation on public transit to federal workers affected by a shutdown.
  • Financial Implication: The fiscal note estimates potential revenue loss if 2% of the 6,300 Delaware-residing federal workers ride transit three times per week at a cost of $4 per day.
    • Estimated revenue loss: Up to about $1,500 per week.

4) Potential Impacts on School and State Revenue

  • School Revenue: A shutdown could delay the collection of school property taxes, potentially reducing local school revenue.
    • Estimated impact (if a shutdown lasted long enough to affect the full fiscal year): Between $1.5 million and $5.7 million.
    • Assumptions: 73% of federal workers own homes; median home value estimated at $380,000; 2026 property tax rates range from 0.1679% to 0.61499% of assessed value, yielding per-home tax ranges of approximately $638 to $2,337.
  • State Revenue: The Department of Finance notes that a shutdown could delay tax collection, potentially reducing state revenue; the exact fiscal impact is unknown and indeterminable due to variability in shutdown duration and scope.

Affected Parties

  • Primary beneficiaries: Delaware residents who are federal government workers (furloughed or required to work without pay) during a shutdown.
  • Government agencies involved: Delaware Department of Labor (administration of the loan fund and related support) and Delaware Transit Corporation (DART) (provision of free transit).
  • Potential indirect effects: Local school districts and state government revenues could be affected by delays in tax collections during shutdown periods.

Procedural and Timeline Notes

  • Effective Date: The act becomes effective upon the Governor’s signature.
  • Fiscal Note and Resources: The fiscal note indicates indeterminate costs in 2027–2029 for transportation and general fund, trust fund, and local school revenue implications due to uncertainty around shutdown frequency and duration.
  • Legislative Status: As of the latest action, SB 268 was reported out of the Senate Elections & Government Affairs Committee with favorable votes and is positioned for potential further consideration.

Sponsor and Co-Sponsors

  • Primary Sponsor: Senator Darius Brown
  • Co-sponsors: Frank Cooke, Claire Snyder-Hall, Eric Morrison, Ray Seigfried, Melanie Ross Levin, Marie Pinkney

If you’d like, I can provide a plain-English risk assessment (probable fiscal impact scenarios) or compare SB 268 to similar shutdown-response measures in other states.

Compiled from official sources — confirm details with the bill’s official record.

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