New Castle County Secures Increased Federal Funding For Housing And Community Services

New Castle County Council’s Community Services Committee officials confirmed that the county will receive increased federal funding from the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2026. (Photo by FREEPIK)

NEW CASTLE- On Tuesday, New Castle County Council’s Community Services Committee officials confirmed that the county will receive increased federal funding from the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2026, supporting key housing and community development programs amid continued economic strain on vulnerable populations.

Carrie Casey, general manager of the Department of Community Services, announced that the county is set to receive more than $2.5 million in Community Development Block Grant (CDBG) funds, nearly $1 million through the HOME Investment Partnerships Program, and over $215,000 in Emergency Solutions Grant (ESG) funds. These allocations represent increases of approximately 2–3% over the previous year.

“These are the funds that we normally get every year, and it’s going to help us through fiscal year 2026,” Casey said, noting that such support is especially critical as COVID-era American Rescue Plan Act (ARPA) funding winds down.

The county’s Housing Choice Voucher Program, which supports low-income renters, is also expected to receive $16.8 million in 2025, funding that officials say is essential for preventing widespread displacement.

Councilman Jea Street stressed the urgency of continued support, pointing to growing encampments in Wilmington and other areas.

“Without this money, we’ll have hell to pay,” said Street. “Because we have thousands of people who depend on this money to pay their rent.”

Council members also discussed the county’s lead remediation program, the only such initiative in Delaware, which continues to receive substantial CDBG funding. An additional $450,000 is expected to be approved for the program in an upcoming ordinance.

Councilman Penrose Hollins praised county staff for their role in maintaining compliance and securing resources.

“We’ve received $16.8 million in one fiscal year with no findings,” Hollins said. “That money is being spent directly in accordance with federal guidelines.”

County leaders emphasized that the strong performance of local staff and effective use of funds have positioned New Castle County to attract additional federal dollars, often reallocated from other jurisdictions unable to use them.

Councilman David Carter expressed concern over the White House’s proposed budget for FY 2026, which recommends a 22.6% reduction in non-defense discretionary spending. The proposal includes eliminating or significantly cutting programs such as CDBG, HOME, and others that fund housing assistance and homelessness prevention efforts nationwide. Carter asked staff to compile a brief report showcasing the county’s impact in order to support federal advocacy efforts. The full budget request can be viewed at whitehouse.gov.

“We’re well recognized for doing excellent work,” Carter said. “But this kind of cut would be a huge hit.”

The meeting concluded with bipartisan appreciation for the staff’s diligence and for maintaining strong ties with Delaware’s congressional delegation, including Senators Tom Carper and Chris Coons and Congresswoman Lisa Blunt Rochester. County officials said those relationships have helped ensure New Castle County remains competitive for federal support during uncertain budget cycles.