Governor Henry McMaster has announced a proposal to allocate an additional $1.1 billion from the state budget to support ongoing and planned road projects in South Carolina, aiming to address rising construction costs due to inflation.
Over the past four years, state budgets have included $1.4 billion for new construction and improvements on state-owned roads, bridges, highways, and interstates. Currently, nearly $7 billion in construction projects are underway across South Carolina, a significant increase from $2.7 billion in 2017.
National and statewide increases in construction and labor costs have raised concerns about possible delays and budget overruns for major infrastructure projects. Governor McMaster said, “Over the last several years, South Carolina has made tremendous progress improving our roadways, with major projects underway in every corner of the state. Our population is skyrocketing, and inflation is driving up construction costs, creating potential delays. We can’t make more time, but we can use this new surplus money to keep road projects moving and on schedule.”
The proposal comes after a request from South Carolina Department of Transportation (SCDOT) Secretary Justin Powell for additional funding to keep current construction efforts on track despite inflationary pressures.
According to Secretary Powell, project costs have risen significantly since 2022:
– The widening of I-26 between Charleston and Columbia increased by 50%, from $2.02 billion to $3.03 billion.
– The widening of I-95 from the Georgia border to Point South rose by 132%, from $977 million to $2.27 billion.
– The Carolina Crossroads project (Columbia’s Malfunction Junction) grew by 33%, from $2.062 billion to $2.751 billion.
Additional funds would also help SCDOT prepare future interstate widening projects on I-85 in Anderson and Oconee counties as well as I-77 in York and Chester counties.
Rising costs have affected SCDOT’s ability to pave two-lane highways: one penny of the state’s gas tax paved 114 miles in 2017 but will cover only 87 miles by 2025.
Since 2017, SCDOT has placed over 10,000 miles of roadway under paving contracts—about a quarter of the state’s highway system—replaced or rehabilitated more than 450 bridges, and completed major interstate improvements on I-85, I-20, and I-26.
Governor McMaster will release his full executive budget for fiscal year 2026-27 soon.
Governor Henry McMaster leads as governor of South Carolina according to the official website. The Office of the Governor engages in economic development initiatives while partnering with local organizations across the state (source). In addition to transportation funding proposals like this one, Governor McMaster’s administration focuses on education programs, public safety measures and environmental initiatives (official website).