South Carolina Gov. Henry McMaster (R) has checked off one more duty as he gets closer to leaving office. Serious financial decisions that will impact the Palmetto State for years to come.
McMaster has vetoed 14 line items in the FY 2026-2027 budget passed by the state legislature on August 11th. The governor noted that 92% of the budget he proposed is part of the new spending plan. He attributed it to communication, collaboration, and cooperation among his office and the state lawmakers.
“South Carolina is stronger, safer, and more prosperous than it was ten years ago, and people across the country have taken notice,” said McMaster. “We have cut taxes, invested in education and workforce development, prioritized public safety and infrastructure, and protected our state’s natural resources. These investments have made South Carolina one of the best places in the country to live, work, and raise a family, and I am confident we will continue building on that success.”
Many of the governor’s vetoes were housekeeping, to clean up redundant or unneeded items, including $800,000 for the Youth Challenge Program. The program graduated its final class in June and has closed.
One veto of significance was the legislature withholding funds to cover the state’s $150 million overrun in pledges made to lure Scout Motors, a Volkswagen subsidiary that builds electric cars, to the Palmetto State. Ground was broken in early 2024 for the $2 billion production center being built in Blythewood.
Noting the overrun was related to an environmental report the state promised, McMaster said withholding payment sets a bad precedent.
“We must pay those to whom the state has obligated itself,” said the governor. “Scout had nothing to do with the cost run. I think it is bad business policy. It hurts our reputation as a handshake state where people can depend on us. The money needs to be paid. We can still have the inquiry, but we owe the money. We have to pay it.”
The legislature has the authority to override the veto, but the house must go back into session to begin the process.
Turning his attention to what he sees as the benefits in the spending plan, McMaster noted additional funding for teacher pay, the reduction of the personal income tax rate, and expanding the homestead exemption from $50,000 to $75,000 for homeowners who are over age 65, blind, or permanently disabled.
McMaster also said the new budget continues to place a high priority on education and workforce development. For the seventh year, South Carolina has put a freeze on college tuition.
“We also have something new with the Meeting Street Scholarship Fund, which is private individuals putting money into that- millions of dollars- and the state is putting in $18.7 million in lottery revenues. This is for academically prepared, good students who are below Pell grant eligible,” he explained.
The FY2026-2027 budget provides $95 million to the South Carolina Workforce Industry Needs Scholarships (SC WINS) program, available for students at the state’s technical colleges.
“Started in 2020, this program has provided more than 150,000 South Carolinians with a post-secondary or industry credential in high-demand careers like manufacturing, nursing, computer science, information technology, transportation, logistics, and construction,” said McMaster.”
McMaster urged members of the legislature to keep South Carolina on the path that has led it to be a leader among southeastern states for economic development, education, a trained workforce, and conservation, making it the fastest-growing state in the nation.
“This is the tenth budget that the General Assembly has passed while I have served as Governor, and it will be the last,” McMaster noted. “This budget shows the great progress that South Carolina has made over this decade and demonstrates what is possible when we cooperate, communicate, and collaborate to serve the people of this great state.”
