What Economic Freedom Means for Delaware Families
By: Kathleen Rutherford, Guest Contributor
Economic freedom can sound like a subject for economists. For Delawareans, it connects to familiar concerns: how much of a paycheck is left after taxes, whether a business can afford to hire, and how quickly new homes can be built. These conditions help determine whether Delaware is an affordable place to live and an attractive place to do business.
The Cato Institute’s Freedom in the 50 States report, which measures economic freedom, estimates Delaware’s overall tax burden at about 12.7% of adjusted personal income—above the national average—and ranks the state 44th overall for economic freedom.
Taxes help pay for public services. They also affect how much money remains for groceries, housing, savings and business growth. Competitiveness involves both sides of that equation: what government collects and what residents receive in return.
The cost of waiting
Consider a business ready to expand or a builder planning new housing. Before work begins, approvals can take months. In announcing its February 2026 permitting reforms, Delaware’s administration acknowledged that state reviews had often taken 18–24 months or longer, raising costs and discouraging investment. For residents, those delays can mean waiting longer for housing and needed infrastructure.
The state’s Permitting Accelerator aims to coordinate reviews and provide clearer timelines while keeping safety and environmental protections. Its practical value will depend on whether projects move forward more predictably. Faster decisions can help businesses plan hiring and investment with greater confidence.
Rules also affect who can work here. On August 20, Governor Meyer ordered a review of at least five licensing boards to identify unnecessary employment barriers. Recommendations are due within 150 days. The order itself does not change requirements in state law. Removing duplicative requirements could help qualified professionals enter Delaware’s workforce and give residents more service options.
What the results show
Education and healthcare matter to competitiveness because families and employers depend on both and because they represent nearly two-thirds of Delaware’s operating budget. In FY2027, public education accounts for 36% of state operating spending, while the Department of Health and Social Services accounts for nearly 28%. With roughly 64% of the state’s operating budget committed to these priorities, the results matter.
Delaware’s 2026 results show 42% proficiency in English and 35% in math for grades 3–8, each up one percentage point. Eleventh-grade SAT math proficiency remained at 18% for the third consecutive year. The gains are real, but the gaps matter for students preparing for work or college.
In its May 2026 report, Delaware found that health-care spending grew 8.7% statewide in 2024, nearly three times the state’s 3% benchmark and 5.7 percentage points above it. The report also identified five significant quality measures: Delaware exceeded only two—commercial breast-cancer screening and Medicaid colorectal-cancer screening—while missing targets for adult obesity, statin-therapy adherence and commercial cervical-cancer screening. That means just two of five specifically highlighted quality benchmarks were achieved, even as spending across all payers—not just state appropriations—rose sharply.
Delaware had the third-longest ER visit times among states—fourth including Washington, D.C.—in CMS data for the year ending September 2025. The measure covers total visits, including treatment. Primary care shortages create another access problem. These pressures strengthen the case for repealing Delaware’s certificate-of-need laws, known locally as Certificate of Public Review requirements. They require state approval for covered facilities and expansions, adding a hurdle for new healthcare investment. Repeal would remove that approval barrier and could enable more care options.
Delaware can move forward by focusing every public dollar on measurable results and removing barriers that stand between people and opportunity. That means helping students build stronger skills, expanding access to timely and affordable care, and making it easier for businesses to invest and hire—so Delawareans can learn, work, earn and afford to live here. When those opportunities grow, Delaware becomes more competitive and families feel the difference.
Kathleen Rutherford is a government relations and advocacy professional with experience in lobbying, public policy and strategic communications in Delaware and Washington, D.C.