Gov. Henry McMaster will roll out his 2026 executive budget in the coming days before the Legislature returns Jan. 13.
And part of his spending wish list for lawmakers will include a request for an additional $1.1 billion in new money strictly for roads.
Citing inflation and labor costs, the governor said in a statement Monday that both can increase delays and bust budgets.
Both have created headaches for the state Department of Transportation as South Carolina's population has surpassed 5 million people, putting pressure on infrastructure.
The population is expected to hit 6.6 million residents by 2040.
The DOT cited three interstate projects that have ballooned in price over about four years:
- Interstate 26 widening from Charleston to Columbia recorded a 50% construction cost increase, from about $2 billion to $3 billion
- Interstate 95 widening from the Georgia border to Point South recorded a 132% cost increase, from nearly $980 million to almost $2.3 billion
- Carolina Crossroads (also known as Malfunction Junction) recorded a 33% cost increase, from about $2 billion to under $2.8 billion
"Over the last several years, South Carolina has made tremendous progress improving our roadways, with major projects underway in every corner of the state," McMaster said. "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.”
McMaster said additional money will help DOT move on more interstate widening projects.
That includes the Interstate 85 project in Anderson and Oconee counties, and the Interstate 77 project in Chester and York counties.
The transportation department submitted its 2026-27 budget request last fall, which will be presented to the House Ways and Means budget-writing committee early this year. (The S.C. House writes the first draft of the budget before the Senate amends the plan.)
In new revenue projections released last fall, state economists said the Legislature will have an additional more than $2.4 billion to spend, about $1.7 billion of which is one-time cash.
The department's budget request also includes $300 million annually for bridges and $25 million every year for a road buyback program DOT said would "improve service delivery and align infrastructure ownership with the users and governments" closest to the roads.
"The kind of generational progress we are making cannot happen without diligent hard work, considered investment, and all of South Carolina working together as a team," state Transportation Secretary Justin Powell said in Monday statement. "I remain committed to delivering a modern transportation system for this state and to ensuring SCDOT is doing everything within our power to improve the lives of our citizens.”
Meanwhile, an S.C. House committee is expected to soon release an infrastructure policy and spending plan that leaders say will in part help accelerate projects and address congestion in high-traffic areas.
Lawmakers have not released specifics but told reporters that everything is on the table.
The House's SCDOT Modernization Ad Hoc Committee is scheduled to meet at least twice during the first week of session in Columbia: the afternoon of Jan. 13 and Jan. 15.
