AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO GRANTS-IN-AID.

Creates a new joint Grant-in-Aid Subcommittee composed of 3 Senators and 3 Representatives, with political balance limits (no more than 2 from the same party per chamber) and an alternating chair/vice-chair arrangement between chambers.

Adds a requirement that organizations demonstrate ability to fund at least half of their operations through revenue sources other than a grant-in-aid.

Adds specific prohibitions on using grant-in-aid funds for: child daycare, purchase of capital equipment, relocation/rehabilitation/renovation/purchase of buildings, payment of any part of an elected official's salary or benefits, political campaigns or partisan purposes, hiring lobbyists, and services benefiting non-Delaware residents.

Removes the requirement for organizations to adopt a conflict of interest policy for Board members and a whistleblower policy for employees and volunteers.

Removes the requirement for organizations that received a grant in the current fiscal year to submit testimonials from Delaware residents who benefited from prior grant-funded services.

Removes the requirement for organizations to certify they have never been a defendant in litigation regarding misuse of state or grant money, including the disclosure alternative.

Requires the Subcommittee Chair and Vice Chair to develop rules and procedures by February 1 following enactment, in collaboration with the Controller General.

Changes the effective date from July 1, 2028 (as set by the Senate amendment) back to January 1 following enactment into law.

Removes the Controller General's authority to conduct performance or financial audits of non-state-agency recipients, to delay or withhold installment payments, and to require repayment of misused funds.

Simplifies eligibility: removes the $250,000 threshold that allowed smaller recipients to submit a review or compilation instead of a full audit; the final text simply requires an audit or review/compilation within 3 years with a fallback to supporting documentation if neither is available.

Broadens eligible organizations to explicitly include state, county, or local government organizations in addition to incorporated non-profits with IRS exempt status.