2026 has been an eventful year in South Carolina politics, marked by special elections, special legislative sessions and an extended budget process. The General Assembly returned to Columbia on August 11 to bring the budget debate to a close. After several weeks of negotiations, both the House and Senate ultimately adopted the conference report without community investments, commonly referred to as earmarks.

Why Earmarks Matter

Earmarks have received increased attention at both the federal and state levels, making it important for businesses to understand how they work and the role they can play in supporting our region. Through the earmark process, legislators advocate for projects in their districts to receive funding in the state budget. This provides constituents with a direct line of sight into how their elected representatives are prioritizing and securing funding for local projects.

For example, if the Legislature wanted to provide funding for a road project, it could appropriate dollars directly to SCDOT and allow the agency to establish a competitive grant program. In that scenario, the final funding decision would rest with the agency. Under an earmark, the decision is made through the elected representatives who are accountable to the communities they serve. This direct accountability is one of the key benefits of the earmark process.

The Chamber supports earmarks because they can help make important projects possible that may otherwise struggle to secure funding. These investments can strengthen our infrastructure, support economic development and address community needs across the region.

While we do not anticipate earmarks being revisited as part of this fiscal year’s budget, there are still funds that remain unallocated. The most likely path is for those dollars to carry forward into the next budget cycle, although other options remain available to the General Assembly. The governor has until Monday to sign or issue any vetoes on the budget.

Highlights of the final adopted budget conference report include:

• Funding for the income tax rate reduction, property tax relief and small business tax cuts.
• Funding to increase teacher salaries to $50,500. Starting pay has risen from $30,113 in 2017 to $50,500 today. These investments are beginning to show results, with the first decline in vacant teaching positions in a decade and record numbers of teachers from NC and GA crossing the border to teach in SC.
• $175M for MUSC to develop a comprehensive cancer center that will deliver a best-in-class patient experience, infused with cutting-edge research to attract and retain top talent while caring for South Carolinians.
• $95M to fund the SC Workforce Industry Needs Scholarship Program.
• $5M for Trident Technical College Defense Sector Advanced Manufacturing Building renovations.
• $3M for Locate SC and $1M for the Closing Fund to help Commerce continue attracting companies and preparing shovel-ready sites.
• $11M for the Rural Infrastructure Authority to expand water and sewer grant opportunities and an additional $11M for the Rural Infrastructure Fund.
• $60M for commercial airport enhancements to drive commerce and keep the state connected.
• $2.5M for DES AI pilot programs to drastically reduce permitting timeframes while maintaining environmental standards.
• $8.5M for the Military Enhancement Grant Program, which provides grants to support the long-term success of military installations in SC.
• Significant statewide road infrastructure investment to ensure South Carolina can clear its backlog while staying ahead of new demand:
  • $189M to fund bridge modernization
  • $175M to fund County Transportation Committees
  • $12.5M in non-recurring funding for the Local Road Buyback Program

We will continue to monitor negotiations closely and advocate for solutions that reduce costs, provide certainty for employers and support South Carolina’s hospitality and small business communities.

If you have any questions about either of these issues, or want to learn more about the Chamber’s advocacy work at the state level, please contact me at bvincett@charlestonchamber.org.