South Carolina Governor Henry McMaster announced Monday that he has issued 14 line-item vetoes for the state’s 2026-27 budget. The governor stated that the final spending plan incorporates 92% of the proposals from his executive budget, which includes an income tax reduction, pay raises for teachers and law enforcement, a freeze on in-state college tuition, and significant funding for education, infrastructure, conservation, and workforce development.
One of the vetoed items removes $800,000 allocated for the Youth Challenge Program, which concluded operations after its final class graduated in June. Several other vetoes address provisions that Governor McMaster indicated were no longer necessary because new laws had already resolved the underlying issues. These include measures related to charter schools, student privacy, school assessments, and STEM education.
Governor McMaster also vetoed a provision that would have forgiven a $350,000 grant awarded to the town of Pacolet in 2013. He explained that the project was not completed and the funds were misappropriated, asserting that allowing the town to avoid repayment would establish an undesirable precedent. Another veto removes an exemption from state artificial intelligence review requirements for a flood planning and warning project.
Regarding the Scout Motors site, Governor McMaster vetoed a provision that would have delayed the expenditure of certain funds until a legislative review of cost overruns was finalized. He emphasized the importance of paying contractors and vendors for work already completed without delay until the 2027 legislative session. Additionally, the governor vetoed a provision that would have restricted state agencies from spending beyond authorized amounts without further approval from the General Assembly, citing potential unintended consequences.
A provision to reauthorize unused American Rescue Plan Act funds was also vetoed by Governor McMaster, who noted it conflicted with another provision within the budget. The governor remarked that South Carolina has become stronger, safer, and more prosperous over the past decade, attracting national attention. He highlighted investments in tax cuts, education, workforce development, public safety, infrastructure, and natural resource protection as factors contributing to the state’s appeal as a place to live, work, and raise a family.
The approved budget increases the Homestead Exemption from $50,000 to $75,000 for homeowners aged 65 and older, those with permanent disabilities, or individuals who are legally blind. It also raises the minimum starting salary for South Carolina teachers to $50,500, a significant increase from the $30,113 minimum starting salary eight years prior.
Funding for school resource officers (SROs) will continue, building on an increase in full-time SROs in South Carolina public schools from 406 in the 2018-19 school year to 1,181 in 2025-26. The spending plan also expands full-day 4K access to eligible children through private providers. For the seventh consecutive year, the budget includes a freeze on in-state college tuition. It allocates $80 million in lottery funding for need-based grants, $20 million for the South Carolina Tuition Grants Program, and $18.7 million for the new Meeting Street Scholarship Fund.
Technical colleges in the state will receive $95 million for the South Carolina Workforce Industry Needs Scholarship program, which supports students pursuing training in high-demand fields. The budget further includes $88 million for the conservation and preservation of historic and significant properties, along with $7.5 million for statewide mitigation projects. For infrastructure, $377 million is allocated for roads and bridges, contributing to nearly $7 billion in active infrastructure projects statewide, compared to $2.7 billion in 2017.
State law enforcement and criminal justice agencies are set to receive an additional $8.3 million for pay raises, overtime, and the hiring of new officers. The budget also permits retired members of the Police Officers Retirement System, who have been retired for at least 90 consecutive days, to return to work and earn up to $80,000 annually without affecting their monthly retirement benefits.
