By James Bush
Delaware’s Grant-In-Aid (GIA) program is a critical source of state support for nonprofits, first responders, and community-serving institutions. Between fiscal years 2020 and 2026, the GIA budget has grown significantly from $55 million to more than $98 million. At first glance, this looks like a major investment in community services. But a closer look reveals complex story of shifting priorities, funding eliminations, and evolving strategies.
Growth That Is Not Always Growth
The GIA’s 10.1% annual growth rate far outpaced inflation, but much of that growth came from moving line items from the General Operating Budget into GIA in fiscal 2025. In fact, the fiscal 2026 budget is slightly smaller than fiscal 2025, down by $214,400. This shows that headline numbers don’t always mean more money on the ground.
Shifts Within The Budget
While the total GIA budget declined by just 0.2% between fiscal 2025 and fiscal 2026, the share going to nonprofits rose from 39.4% to 45.4%, reversing earlier declines. Still, not all organizations benefited, as 25 organizations lost funding completely. These changes reflect a focus on reallocating existing funds rather than expanding overall support.
Some sectors gained ground, while others were cut. The Alcohol/Drug Abuse category was removed entirely with its programs moved elsewhere. A new Economic, Housing, or Labor Services category was introduced, and many organizations were reclassified. First responders’ share fell 38.4%, down from over 45% in earlier years. While nonprofits saw positive trends this year looming federal cuts to Delaware’s budget could reduce GIA funds in fiscal 2027.
One-Time Allocations
One-time allocations significantly shaped the fiscal 2026 GIA budget. More than $7.5 million previously allocated to government projects were redirected to:
- Emergency Medical Services: $4 million.
- Fire companies and ambulances: $1.6 million.
- Senior transportation: $1.7 million.
- Senior centers : $300,000.
Nonprofits’ one-time funding grew from $727,000 in fiscal 2020 to $935,000 in fiscal 2026. However, their share of total one-time funds from 39.5% in 2020 to a low of just 3.6% in 2025, before recovering to 6.7% in 2026, highlighting the unpredictability of this funding.
Regional Disparities in Senior Center Funding
Senior center funding varies widely:
- New Castle County (excluding Wilmington): $3.7 million for 13 centers ($286,179 per center).
- Sussex County: $2.6 million for 13 centers (averaging $200,595 per center).
- Kent County: $1.69 million for seven centers ($241,543 per center).
- Wilmington: $1.55 million for nine centers ($172,453 per center).
These differences raise important questions about whether funding formulas match community-level needs.
Targeted Growth in Smaller Categories
Some smaller funding categories saw dramatic increases. Veterans’ organizations, while still comprising less than 1% of the total GIA budget, grew by 133.9% from $358,646 in 2020 to $839,000 in 2026. These targeted increases suggest focused investments in emerging needs, even when overall dollar amounts remain modest.
The Bottom Line
While Delaware’s GIA funding has grown on paper, that growth reflects accounting changes as well as shifting priorities, rather than a surge in new resources. Nonprofits have gained a larger share, but gains were not universal. One-time allocations and regional disparities continue to challenge equity and stability. As Delaware prepares for future GIA cycles, transparency and data-driven decision-making will be key to ensuring every public dollar delivers impact.
