Governor McMaster: Dedicate Over $1 Billion in New Money for Roads

COLUMBIA, S.C. - In a preview of his soon to be released 2026 executive budget, Governor Henry McMaster today announced he will recommend the General Assembly appropriate an additional $1.1 billion in new money from the state budget to keep road projects moving and on schedule despite inflation.

In the last four years, Governor McMaster and the General Assembly have approved state budgets that have contained $1.4 billion in funding for new construction and improvements to state-owned roads, bridges, highways, and interstates. There are currently almost $7 billion in construction projects underway across the state, up from $2.7 billion in 2017.

Nationally and here in South Carolina, inflationary construction and labor cost increases have the potential to create crippling delays and busted budgets for major construction projects currently underway and soon to break ground.

"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 proposal follows a request made to him from South Carolina Department of Transportation (SCDOT) Secretary Justin Powell seeking additional funds to keep the department's current construction projects moving and on schedule in the face of inflationary challenges.

According to Secretary Powell, three prime examples of current construction costs that have increased from 2022 to today are:

• The widening of I-26 between Charleston and Columbia: $2.02 billion to $3.03 billion, or a 50% increase
• The widening of I-95 from the Georgia border to Point South: $977 million to $2.27 billion, or a 132% increase
• Carolina Crossroads (Columbia's Malfunction Junction): $2.062 billion to $2.751 billion, or a 33% increase

Additional funds will also help SCDOT move forward with getting additional interstate widening projects shovel ready in the next few years, including I-85 in Anderson and Oconee counties and I-77 in York and Chester counties.

Another example of how inflationary cost increases have impacted SCDOT is the number of miles of two-lane highway which can be paved using one penny of the state's gas tax: In 2017, SCDOT could pave 114 miles; In 2025, SCDOT could only pave 87 miles.

Since 2017, SCDOT has placed more than 10,000 miles of roadways (nearly a quarter of the state's 41,000 mile highway system) under paving contract, replaced or rehabilitated over 450 bridges, and completed major interstate improvements, including projects on I-85, I-20, and I-26.

Governor McMaster will release his executive budget for the 2026-27 fiscal year in the coming days.

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