South Carolina Governor Henry McMaster announced plans to recommend that the General Assembly allocate an additional $1.1 billion from the state budget for road construction and improvement projects. This proposal is part of his upcoming 2026 executive budget and aims to address rising construction costs due to inflation.
Governor McMaster, who has served as South Carolina’s chief executive since January 2017 and was re-elected in 2018 and 2022, oversees statewide government operations and policy implementation. His administration has focused on economic development, public safety, education, and infrastructure improvements, according to the official website: https://governor.sc.gov/.
In recent years, state budgets approved by Governor McMaster and the General Assembly have included $1.4 billion for new construction and upgrades of roads, bridges, highways, and interstates. Currently, there are nearly $7 billion in active construction projects across South Carolina—an increase from $2.7 billion in 2017.
Nationally and within South Carolina, inflation has led to higher construction and labor costs. These increases threaten to delay major infrastructure projects or push them over budget.
“Over the last several years, South Carolina has made tremendous progress improving our roadways, with major projects underway in every corner of the state,” said Governor Henry McMaster. “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 governor’s recommendation follows a request from South Carolina Department of Transportation (SCDOT) Secretary Justin Powell for additional funding to maintain progress on current projects amid inflationary pressures.
Additional funds will help SCDOT prepare for future interstate widening efforts—including I-85 in Anderson and Oconee counties as well as I-77 in York and Chester counties.
Rising costs have also reduced how far existing funds go; for example, one penny of the state gas tax could pave 114 miles of two-lane highway in 2017 but only covers 87 miles in 2025.
Since 2017, SCDOT has contracted paving for more than 10,000 miles of roadway—about a quarter of the state’s highway system—and replaced or rehabilitated over 450 bridges while completing significant interstate improvements on I-85, I-20, and I-26.
Governor McMaster will release his full executive budget proposal for fiscal year 2026-27 soon.
