Secretary Josette Manning and DHSS staff summarized the department's FY 2026 capital priorities and ongoing projects, telling the committee that the department manages multiple state campuses, service centers, group homes and leased properties.

DHSS reported a deferred maintenance backlog of roughly $30 million across state facilities and described recent project work: replacement of campus electrical systems, roof work at the Stokely Campus, and consolidation of building controls. Secretary Manning highlighted two major, ongoing projects: the Delaware Hospital for the Chronically Ill (DHCI), where construction is expected to begin spring 2025 with a December 2026 completion estimate; and the Delaware Public Health Laboratory expansion, which DHSS said is scheduled for completion in August 2025 and will add biosafety level 3 capacity and move infectious disease and immunization programs into updated space.

The recommended FY 2026 capital budget includes roughly $28.8 million for DHSS for roof replacements, minor capital improvements, security upgrades and drinking water program work. Manning described a $1.133 million SAN (storage area network) upgrade request to meet federal audit requirements and optimize federal match, and a $2.5 million request for security improvements at the Mitchell Building (a level 5 forensic facility) including a sally port and revised family visitation arrangements.

Committee members pressed DHSS on the status of federal draw issues and whether the public health lab or other projects were at risk; Manning acknowledged federal uncertainty and said work at the lab is expected to continue while staff track federal funding developments. On other capital items, Facilities staff noted one specific federal funding exposure for a DHCI-related project ($10 million of grant funds tied to that project) and described procurement and historic review steps that remain for some active builds.

Ending: Manning and facilities staff asked the committee for support of the maintenance and security items in the governor's recommended budget and said they would continue to provide updates on federal draw status and project timelines.