ARTICLES IN THIS EDITION

• NEWS-VIDEOS: Lawmakers Provide Insights on Immigration, Energy, Income Taxes, More
• NEWS: Avelo Airlines Ends Relationship with ICE, Announces Restructuring, Closings, and Service Reductions

NEWS VIDEOS

Lawmakers Provide Insights on Immigration, Energy, Income Taxes, More

Spotlight Delaware held its annual legislative summit on Wednesday, hosted by Delaware State University in Dover. 

In anticipation of lawmakers returning to resume work at the State Capitol next week, the event featured elected leaders and other experts in guided discussions exploring a wide range of public policy issues. 

House Minority Whip State Rep. Jeff Spiegelman (R-Clayton, Townsend, Smyrna) was one of four legislative leaders on a panel discussing issues ranging from reassessment to school district consolidation in northern New Castle County.

Resetting Delaware's top income tax rate bracket, which currently applies a 6.6% rate to annual wages and small-business earnings exceeding $60,000, drew significant interest.

Speaker of the House Melissa Minor Brown (D-New Castle) said setting the top threshold at $60,000 "makes no sense."

Existing legislation pending action in the House Revenue & Finance Committee, House Substitute 2 for House Bill 13, seeks to create three new tax brackets that would impact high-wage earners and small businesses:

• 6.75% of taxable income in excess of $150,000 but not in excess of $250,000;
• 6.85% of taxable income in excess of $250,000 but not in excess of $500,000;
• 6.95% of taxable income in excess of $500,000.

However, at Wednesday's summit, Speaker Brown would not commit to any specific proposal or timeline.

Rep. Spiegelman said the issue is more nuanced than it appears, and raising income taxes in an uncertain economy would have negative repercussions for many people, not just those paying the higher rates. (Click here or on the graphic above to see his remarks.)

ADDITIONAL

The 2026 Spotlight Delaware Legislative Summit also yielded the following comments and contributions from participants:

IMMIGRATION

State Rep. Mara Gorman (D-Newark) said she wants House Bill 151 enacted. The legislation, which she introduced on May 1, would prohibit private detention facilities in Delaware.

She also indicated she would look into how local police agencies handle immigration detainers received from U.S. Immigration and Customs Enforcement (ICE). The detainers are requests from ICE to state and local law enforcement agencies (including jails, prisons, or other confinement facilities) asking that ICE be notified as soon as possible before releasing certain unauthorized immigrants. The document also requests that such individuals be held for up to 48 hours beyond their scheduled release so ICE personnel have time to assume custody.

There are currently six House bills aimed at curtailing the potential flow of information about unauthorized immigrants from Delaware state and local agencies to federal officials. Five of the six measures have cleared committee and are eligible for a House vote.

ENERGY

Marcus Beal, Vice President of Governmental and External Affairs for Delmarva Power, said Delaware is facing significant challenges in meeting sharply higher electricity demand. "We were in a situation last year when we were considering shutting off electricity to preserve the integrity of the system," he said during a panel discussion on energy. "We are marching towards a cliff where supply is not matching demand, and we'll have to decide where to shed load."

He said one modest step that could be implemented in the near future is to install batteries at the sites of large solar arrays. Storing excess solar power would provide additional flexibility in meeting local demand.

State Rep. Bryan Shupe, an experienced small business owner and operator, joined Ayanna Khan from the Delaware Black Chamber of Commerce (in photo) and Rob Herrera, co-chair of the Delaware Prosperity Partnership, as panelists in a Spotlight Delaware forum discussing "Delaware's Innovation Economy."

In this brief recap video, Rep. Shupe cited several issues he raised during the discussion, including curtailing state spending, reducing the regulatory and economic burden on small enterprises, and the need to teach Delaware youths that entrepreneurship can be a viable and rewarding career path. 

NEWS

Avelo Airlines Ends Relationship with ICE, Announces Restructuring, Closings, and Service Reductions

Avelo Airlines, a commercial airline serving Wilmington Airport, announced this week that it is ending its nine-month-old partnership with U.S. Immigration and Customs Enforcement (ICE) to facilitate the deportation of unauthorized immigrants.

The announcement comes a week after two Delaware lawmakers, Sen. Ray Seigfried (D-Claymont, Ardens) and Rep. Mara Gorman (D-Newark), introduced legislation to pressure the company to terminate its contract with ICE.

Senate Bill 207 included a provision seeking to disqualify commercial airlines from receiving an economic development exemption from Delaware's five-cent-per-gallon tax on aviation fuel if the airline deported ICE detainees without those people having been properly processed.

Critics of SB 207 noted that the bill would place airline employees in the nearly impossible position of policing a federal government agency.

Avelo Airlines had also been under pressure from protesters in other markets where it operates to end its ICE contract.

In a statement issued following the announcement, Sen. Seigfried commended the airline for its "astute decision." He said SB 207 "was never about singling out a single company or opposing market-based incentives," but taking a stand against what he characterized as "irresponsible deportation tactics."

Avelo also announced this week that it is streamlining its network, canceling two planned expansions, and closing bases at three airports. It is also reducing the number of flights serving Delaware from 14 to 10.

Wilmington Airport has had difficulty attracting and retaining commercial airline service. Frontier Airlines operated there from 2013 to 2015, and again from 2021 to 2022. Several other carriers have also failed over the last 20 years in their attempts to provide continuing service.