Governor Matt Meyer’s 2026 State of the State address outlined an ambitious vision for Delaware, with a focus on early childhood education, healthcare access, education reform, and housing. These are areas where nonprofits play a central role in delivering services. While the governor’s priorities largely align with those of the nonprofit sector, the speech left open questions about sustainability, state/nonprofit contracting practices, and whether nonprofits will be fully resourced to meet growing expectations. 

The governor’s announcement of nearly $50 million in new early childhood education investments is encouraging, especially as families continue to face childcare shortages and workforce challenges. However, nonprofit providers, many already operating on thin margins, know that new funding alone does not resolve long standing structural concerns. Rising operating costs, workforce compensation challenges, and reimbursement rates that often fail to cover the fall short of covering the true cost of care remain persistent concerns. Without addressing these factors, expanded access may rest on an unstable foundation.  

The governor also renewed attention on modernization of Delaware’s education funding formula, an issue long discussed across the state. Nonprofits frequently support students through tutoring, afterschool programs, and literacy initiatives, particularly in under-resourced communities. While reform is needed, changes to funding systems can often take years to implement. In the interim, nonprofits are asked to continue filling gaps with limited funding streams and grants. A clear timeline and dedicated resources will be critical to ensure these reforms lead to lasting change. 

Healthcare proposals in the address, including mobile units and workforce initiatives, reflect real needs across the state. Nonprofit health providers and community clinics have long expanded access in areas where care is limited, especially in rural and low-income areas. Many of these organizations, however, are already managing staffing shortages, administrative burdens, and increasing demand. Short-term or pilot funding may help, but long-term investment and more efficient contracting processes are needed to support sustainable care delivery. 

Housing was also identified as a priority, with commitments to expand capacity and reduce homelessness through efforts such as HOPE Centers. While these initiatives are important, nonprofits working in housing note that shelter expansion alone is not a complete solution. The speech emphasized permitting reform and development but offered fewer details on long-term strategies to stabilize housing and support service providers. 

Notably absent from the address was a direct acknowledgement of the financial strain many nonprofits face. As state government increasingly relies on nonprofit organizations to advance public goals, organizations operate under contracts that do not cover full costs, lack inflation adjustments, or experience payment delays. True partnership requires recognizing nonprofits as essential infrastructure, not solely as service vendors. 

Governor Meyer’s agenda reflects goals widely shared across Delaware’s nonprofit sector. The path forward will depend on whether these ambitious goals are paired with realistic funding models, contract reform, and sustained investment. The coming legislative session will be critical in determining whether this vision translates into durable progress for Delaware’s communities.