Two bills under consideration at Legislative Hall seek to help working Delawareans keep more of the money they earn and increase the affordability of childcare.
House Bill 387, a bipartisan measure sponsored by State Reps. Jeff Hilovsky, in photo (R-Long Neck, Oak Orchard), and Melanie Ross Levin (D-Tallleyville), would increase state subsidies for childcare — a.k.a. Purchase of Care.
At present, program eligibility is capped at 200% of the federal poverty level. For reference, a family of four would currently need a household income below $66,000 to qualify. The proposal would raise the eligibility cap in phased increments to 275% of the federal poverty level. The law would expire after five years unless the General Assembly acted to extend it.
“In Delaware, infant care costs an average of $15,607 a year,” said Rep. Hilovsky, testifying before the House Health & Human Development Committee on Wednesday. “Regulatory barriers continue to limit the number of [childcare] providers who can even open their doors or expand, and our purchase of care program is frozen at 200% of the federal poverty level. The combined effect of these facts leaves working families ineligible for help, not because they are comfortable, but because they earn one dollar too many.”
Rep. Hilovsky characterized the bill’s benefits as multifaceted. “Currently, Delaware’s labor force participation rate is 59.4% as of late 2025. That is the lowest in the mid-Atlantic and nearly four full points below the national average. In its 2025 annual economic report, our Department of Labor confirmed that the state’s participation rate was the lowest since record-keeping began in 1976. That’s not just a statistic; that is the reality of a working parent who left the workforce because they couldn’t make the math work for childcare.”
Rep. Hilovsky noted that North Carolina, Michigan, and Kentucky boosted childcare subsidies, generating strong economic growth while helping parents to stay employed and advance their careers. “When the parents can count on reliable childcare, they show up, they stay…and businesses grow. This is a family security bill, a jobs bill, and an economic development bill.”
The legislation was released from committee and is on the House Ready List, but the fiscal note (its expected cost) has not yet been completed.
A second piece of legislation aimed at helping working Delawareans is pending action in the Senate Elections & Government Affairs Committee.
Sponsored by Sen. Bryant Richardson (R-Seaford) and Rep. Bryan Shupe (R-Milford South, Ellendale), Senate Bill 299 would provide tax relief to those working overtime.
SB 299 would establish a Delaware personal income tax credit of up to $15,000 for overtime income. The credit would phase out for individuals earning more than $125,000 annually and joint filers earning more than $250,000, with the credit fully phased out at higher income thresholds.
The legislation is designed to benefit working Delawareans across a wide range of professions, including healthcare workers, first responders, tradesmen, manufacturing employees, transportation workers, and others who regularly work extra hours to meet the demands of their jobs.
“Too many hardworking Delawareans are struggling with rising costs while sacrificing additional time away from their families through overtime work,” said Sen. Richardson. “This legislation recognizes men and women who are willing to put in those extra hours to keep our economy moving and provide for their households.”
Rep. Shupe said the measure “puts more money in the pockets of the people who work the hourly jobs that keep our society running — nurses pulling double shifts, factory workers staying late, and every hourly wage-earner sacrificing time with family to bring home a few extra dollars. By creating a state tax credit for overtime earnings, we’re recognizing that hard work should be rewarded, not penalized.”
At present, the bill has no Democratic sponsors, and the fiscal note has not yet been completed.
