SC Legislature Kicks Off Election Year with Bold Budget, Tax Cuts, and Infrastructure Investments

South Carolina lawmakers returned to the State House this week for the second year of the legislative session, focusing on unfinished business amid rapid population growth and an election year timeline ending May 14. Governor Henry McMaster unveiled his final executive budget for fiscal year 2026-2027, proposing over $1 billion for roads and bridges to combat rising construction costs, a cut in the income tax rate to 5.9 percent, and $150 million to raise starting teacher pay to $50,500. According to the Governors Office, the plan also expands full-day four-year-old kindergarten eligibility, funds free breakfast for all public school students, and allocates $58 million for public land preservation while boosting school resource officers to cover every campus.[3][4]

Top headlines include Senate advances on stronger DUI laws, with Majority Leader Shane Massey prioritizing the bill to close loopholes, and House efforts on infrastructure reform as the SCDOT seeks to cut regulations by 30 percent. South Carolina Public Radio reports Republican leaders eye tax reductions, road improvements, charter school accountability, and potential abortion restrictions on mail-order medication.[2][5] Dominion Energy seeks a 12.7 percent rate hike, sparking debates on energy affordability amid proposals for new gas plants.[1]

Economically, 2025 industry recruitment hit $9.12 billionthe third-highest on recordcreating over 8,100 jobs, with rural areas capturing 46 percent of capital investment. South Carolina Commerce highlights expansions by firms like Fenner Precision Polymers in Cherokee County and Ocean Craft Marine in Horry County, fueling growth in manufacturing and tech.[7][14] Construction outlook remains optimistic, driven by healthcare, data centers, and power projects, though workforce shortages persist.[10]

In education, the state eyes $81.7 million for college maintenance and $95 million for workforce scholarships via SC WINS. Community efforts include maternal health funding and a population growth study to strain-test infrastructure.[3] No major weather events reported recently.

Looking Ahead: Watch for McMasters State of the State address later this month, the Houses transportation policy release, former lawmaker RJ Mays sentencing, and the Governors Economic Summit outcomes.

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