homestate delaware
By Ben Everidge for Thomas
Photo Credit: Visit Delaware
Delaware at the Crossroads: 10 Issues That Define the first state’s Future
“Delaware may be the First State, but today it’s defined more by shell companies and coastal floods than by constitutional courage, and its future depends on whether it can reinvent itself beyond a corporate haven at risk of sinking.”
- Ben Everidge
Delaware may be the nation’s second-smallest state, but its influence is outsized. Known as the “First State” for ratifying the Constitution, it has become a corporate haven, a political power center thanks to former President Joe Biden, and a logistical hub for the Northeast. Yet Delaware faces challenges of affordability, climate change, healthcare, and governance that will test its ability to balance small-state identity with big-state responsibilities.
1. The 2026 Governor’s Race and Political Continuity
Democrats have dominated Delaware politics for decades, but term limits and succession battles are expected to open the door to a competitive contest in 2026. Republicans face long odds statewide but continue to hold influence in rural Sussex County. Independents and swing voters in New Castle County will be decisive.
2. Corporate Haven and Fiscal Dependence
Delaware’s business-friendly incorporation laws generate billions in revenue, but critics argue that the state is overly dependent on corporate registrations. As national pressure builds for reform in tax havens and shell companies, Delaware’s fiscal model could come under scrutiny, threatening its long-standing economic strategy.
3. Climate Change and Coastal Vulnerability
With one of the lowest average elevations in the country, Delaware is highly vulnerable to sea-level rise and flooding. Coastal towns face existential threats, while infrastructure upgrades demand billions in investment. Climate resilience may become the defining issue of the state’s future.
4. Housing Affordability and Growth Pressures
Population growth in New Castle and Kent Counties, combined with migration from neighboring states, has fueled housing shortages and rising costs. Longtime residents are increasingly struggling with affordability, while suburban sprawl threatens to encroach on farmland and open spaces. Zoning reform and innovative growth policies are pressing needs.
5. Transportation and Infrastructure Gaps
Delaware’s location along the I-95 corridor makes it a key logistical hub; however, congestion, aging bridges, and rail bottlenecks frustrate both commuters and businesses. Federal infrastructure funding presents an opportunity, but effective execution will determine whether Delaware can modernize its transportation network efficiently.
6. Healthcare Access and Rising Costs
Despite its small size, Delaware faces significant healthcare inequities, particularly in its rural southern counties. Rising costs and hospital consolidation limit access, while shortages of healthcare workers compound the problem. Addressing healthcare disparities is a growing political priority.
7. Education and Workforce Readiness
Delaware has invested in early childhood education and workforce development, but gaps remain between urban and rural districts. Wilmington schools face persistent challenges, while statewide test scores show uneven performance. Preparing students for careers in technology, logistics, and healthcare will be crucial for long-term competitiveness.
8. Crime, Drugs, and Public Safety
Wilmington has long struggled with high rates of violent crime relative to its size, earning the nickname “Murder Town, USA.” While rates have declined in recent years, concerns about drugs, gangs, and public safety remain. Restoring confidence in urban communities is key to the state’s stability.
9. Demographic Shifts and Political Identity
Delaware’s population growth is driven by migration from Maryland, Pennsylvania, and New Jersey, altering the state’s cultural and political balance. Hispanic and immigrant communities are experiencing significant growth, particularly in Sussex County. These shifts will increasingly shape elections and policy priorities.
10. Independent Voters and Civic Tradition
While Delaware leans Democratic, independents make up a growing share of the electorate. Their pragmatic focus on affordability, jobs, and governance could influence both state and local races, particularly if either major party loses credibility. In a small state, independents can have a disproportionately large voice.
The Thomas Take
Delaware is more than a corporate registry and a political footnote tied to Joe Biden. It is a state confronting some of America’s most pressing issues – climate vulnerability, healthcare inequity, and housing affordability – on a small but visible stage. If Delaware can modernize its infrastructure, reform its fiscal model, and protect its coastlines, it can prove that small states can deliver big solutions. If not, the First State may be remembered more for its past than for its promise.
To learn more about Delaware’s issues, read: