South Carolina Gov. Henry McMaster on Monday requested an additional $1.1 billion for road and bridge projects, citing rising inflation and population growth. His full budget plan is expected next week when the Legislature reconvenes for the 2026 session.
The funding would come from the state’s nearly $2.5 billion in projected surplus revenue for the fiscal year beginning July 1, according to the South Carolina Board of Economic Advisors. McMaster’s request accounts for over 60% of the available one-time funds.
“Our population is skyrocketing, and inflation is driving up construction costs, creating potential delays,” McMaster said in a statement. “We can’t make more time, but we can use this new surplus money to keep road projects moving and on schedule.”
Transportation Secretary Justin Powell said construction costs have significantly outpaced revenue. In a December letter, he noted that the 28-cent-per-gallon fuel tax introduced in 2022 now covers fewer miles of roadwork than when it was enacted.
The Department of Transportation (DOT) estimates $600 million of the requested funds would go toward ongoing interstate projects, $400 million to bridge repairs, and $150 million to initiate new projects.
Major projects include widening Interstate 26 between Columbia and Charleston, which has increased in cost from $2 billion to $3 billion since 2022, and expanding Interstate 95 from the Georgia border to U.S. Highway 278 in Jasper County, now expected to cost $2.3 billion, up from $977 million. Powell also reported that the Columbia-area Carolina Crossroads project costs have risen to $2.8 billion.
The funding would also support early design work on interstate expansions in Anderson, Oconee, York, and Chester counties, as well as studies for future improvements near the Charlotte area. Powell said $150 million could accelerate the start date from 2035.
Bridge work remains a priority. Of 8,450 bridges in the state, more than 2,800 are over 60 years old. About 80 were closed as of early December. A $400 million investment over two years, combined with annual spending, has allowed the DOT to add 278 bridges for near-term repair.
Powell wrote that the DOT originally sought $300 million for bridges this year. In prior budget cycles, similar requests were partially funded or not included.
McMaster’s recommendations are based on agency budget requests submitted last September.
The DOT also requested $25 million to transfer some state-owned roads to local governments, aiming to reduce the number of state-maintained miles. South Carolina has the fourth-largest state highway system despite ranking 23rd in population. Previous road transfer proposals were not adopted due to local funding concerns.
DOT is seeking authority to negotiate with local governments on payments for potential transfers, which would still require legislative approval.
