Funding cuts included in this year’s grant-in-aid proposal could effectively shutter a controversial Dover homeless shelter. | SPOTLIGHT DELAWARE GRAPHIC BY ELSA KEGELMAN

Why Should Delaware Care? 
Each year, the Delaware General Assembly allocates its giant-in-aid funding, a bill that provides extra money to nonprofits. Many recurring recipients got more money for the next fiscal year, notably fire companies and housing services. But one Dover homeless shelter got cut short.   

Funding cuts included in this year’s grant-in-aid proposal could effectively shutter a controversial Dover homeless shelter.

While hundreds of organizations are slated to receive more money this year from state lawmaker’s annual funding allocation meant to bolster private nonprofits, The People’s Church – a Dover homeless shelter that has faced resident and local official scrutiny – will go without funding for its winter overnight shelter and meal service program.

The grant-in-aid bill still must pass both the House and Senate during the final day of this year’s legislative session on Tuesday, June 30, and could be subject to change during the floor debate in both chambers. 

Nonetheless, the lack of funding for one of few homelessness service providers in Delaware’s capital city represents a blow to the city’s unhoused population. It also marks the latest development in the debate over loitering that has overtaken the city for nearly a year. 

Lawmakers allocated $55,000 to the church, but the bill specifically limits that funding to be used for after school child care programs, and not homelessness services. 

The organization received $85,000 last fiscal year toward its overnight shelter and meals program, and grant-in-aid funding has always served as the church’s financial lifeline, lead pastor Rev. Derrick Hodge told Spotlight Delaware. 

Hodge described the funding news as “horrific” and “foolish.” 

The grant-in-aid proposal comes after the Dover City Council targeted the People’s Church this spring, as residents in the downtown neighborhood cited the shelter as the reason people were sleeping, trespassing and using drugs in the area. 

The city council voted in March to deny the shelter funding to expand its workforce development program, and later that same month threatened to shut down the shelter for improper zoning to operate an overnight shelter. 

State Sen. Trey Paradee (D-Dover), chair of the powerful Joint Finance Committee (JFC) that makes grant-in-aid funding allocations, represents a district that includes the People’s Church. 

Hodge said he believes the funding decision is state lawmakers “caving to pressure” from Dover residents claiming that the church is causing the homelessness and drug use issues, instead of listening to rational arguments. 

“We will continue to do the best we can, within the limits of our available resources to help people get back on their feet and help the neighborhood hungry survive during this terrible time,” Hodge said. “I don’t know what that’s going to look like.” 

Other shelters see increase 

Sussex County also saw a shift in funding for homelessness services, as faith-based service provider Love Inc. of mid-Delmarva received a more than 1,300% increase in state dollars from $11,000 last year to $150,000 this fiscal year. 

Love Inc. currently operates winter overnight shelters across Sussex County and provides case management services to individuals, associate director Kathryn Alban said. 

The organization has been lauded by town leaders in Georgetown as a more accountability-focused approach to ending homelessness that they would like to see brought to Georgetown, as a group of residents have spent the past year criticizing the effectiveness of existing resource providers in the county seat. 

Alban said Love Inc. is currently “in conversations with leadership in Georgetown,” and the funding increase could help them expand to have more of a presence in town.

Delaware officials have reached an agreement to convert hundreds of Delaware State University dorms into a new homeless shelter modeled after the New Castle County Hope Center. | SPOTLIGHT DELAWARE PHOTO BY JACOB OWENS

However, she said Love Inc. does not have any intention of taking over current service providers, like Springboard Delaware, but rather would like to work alongside them. 

Other housing services, including the Central Delaware Housing Collaborative, Sussex Community Crisis Housing Services and First State Community Action also received large funding increases. 

The Ministry of Caring, which also provides sheltering, received a $208k increase. 

A new homeless shelter in Kent County, which recently announced its plans to convert Delaware State University dorms into housing, also received a one-time grant for the project. 

More money overall 

Compared to last year, the bill proposes a modest increase in funding allocations to government agencies and senior centers, county funds and paramedic operations.

The bill proposes awarding a total of $99.4 million, a slight increase from last year’s $98.2 million.

The biggest appropriations are slated for statewide government programs, the largest of which being $40 million for government units & senior centers. That allocation is followed by $22 million for public health emergency medical services and $19 million for paramedic program operations.

The Wilmington Senior Center, which abruptly closed its doors in March without an official statement as to why, is slated to receive more than half a million dollars to be put toward reopening. 

A Spotlight Delaware report found the center had struggled with financial difficulties in the past. 

A state audit investigating fraud within the Marydel Volunteer Fire Company revealed tens of thousands of dollars of unaccounted spending. It also raised concerns among elected officials about lacking oversight for fire companies across the state. | SPOTLIGHT DELAWARE PHOTO BY MAGGIE REYNOLDS

Funding for volunteer fire companies also is set to increase across the board. Every Delaware fire company will receive $1,500 more than last year, totaling a $90,000 increase across all three counties.

The bill includes a specific set of provisions for the Marydel Volunteer Fire Company, which was recently found to have been spending tens of thousands of dollars without oversight, according to a state audit. 

These extra requirements include Marydel Fire Company leadership submitting a written report to the Joint Finance Committee about how they are addressing the allegations in the auditor’s report, and whether they have completed an independent audit of the fire company. 

Completing these steps will allow Marydel to receive its roughly $300,000 in grant-in-aid funding.

The General Assembly’s grant-in-aid bill will first be heard in the Senate, which is set to convene for the final time this year at 2 p.m. on Tuesday. It must then pass in the House of Representatives.

Maggie Reynolds is one of 107 journalists placed by Report for America into newsrooms across the country, in response to the growing crisis in local, independent news. Reynolds, a reporter who has covered...

Ella Walker is a student journalist from Swarthmore College and a 2026 Spotlight Delaware summer intern. She is a Lewes resident and graduate of Cape Henlopen High School.