Gov. Henry McMaster on Wednesday issued Executive Order 2025-40 directing all state government agencies to halt executing spending, procurement, and contract awards based on race-based quotas or set-asides currently required by law.
Right now, South Carolina law mandates that all state agencies spend 10% of their annual controllable budgets with minority-owned businesses. Additionally, the Department of Transportation is required to give at least 5% of certain road and infrastructure contracts to minority-owned businesses.
The governor's office said the laws were passed in the early 1980s to likely comply with federal requirements at the time.
McMaster stated that the order ensures contracts will not be executed until the state's procurement process complies with the U.S. Constitution and, he said, by law treats all individuals equally.
Removing the laws will require legislative action.
The governor said Senate President Thomas Alexander, R-Oconee, and House Speaker Murrell Smith, R-Sumter, plan to file legislation to repeal the two statutes when the General Assembly returns Jan. 13.
Without action, McMaster told reporters Wednesday that state agencies could be "subject to lose federal money."
The U.S. Supreme Court recently ruled that programs using race must meet very strict standards and eventually come to an end. The existing South Carolina laws don’t meet those requirements.
Earlier this year, President Trump also issued a national order calling race-based quotas harmful said they go against American values of hard work and merit.
McMaster's new order only affects future contracts. Any contracts that already exist will not be canceled or changed.
"Nowhere should any person be treated differently because of their race. State government spending and procurements should be awarded based on merit and value to the taxpayer, not on set-asides or quotas," McMaster said.
In response, S.C. House Democratic state Rep. John King, D-York, criticized McMaster's move, saying removing the laws is not "about equality."
"Gov. McMaster’s order does not 'promote fairness,'" King, who is Black, said in a statement. "Instead, it exposes the ugly truth: they are preparing to make this next legislative session a fight about race — because they have nothing else to offer."
Maayan Schechter contributed to this report.