The House took up the budget on the floor this week, along with Senate amendments to the income tax cut bill that reduce the rate to 5.21%. The House approved the Senate’s amendments, and the bill now heads to the Governor’s desk for signature.

The final bill considered was tax conformity, which determines whether South Carolina will conform to the Big Beautiful Bill for tax year 2025. The House ultimately passed conformity, but it faces an uncertain future in the Senate. Conforming is estimated to cost the state roughly $288 million, which could result in another year without member-directed spending, more commonly known as earmarks.

Highlights in the budget for the Charleston metro business community include:

• Funding for the income tax rate reduction.
  
• 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 North Carolina and Georgia crossing the border to teach in South Carolina.
  
• $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.
  
• $25M in SC First funding to replace the former tuition mitigation program and exclusively support critical workforce disciplines.
  
• $95M to fund the SC Workforce Industry Needs Scholarship Program.
  
• $5M for Trident Technical College Defense Sector Advanced Manufacturing Building renovations.
  
• $1M recurring each for LocateSC and the Closing Fund to help commerce continue attracting companies and preparing shovel-ready sites.
  
• $16.5M for the Rural Infrastructure Authority to expand water and sewer grant opportunities.
  
• $19.5M to promote tourism across South Carolina.
  
• $70M 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.
  
• $10M for the Military Enhancement Grant Program, which provides grants to support the long-term success of military installations in South Carolina.
  
• $500M in statewide road infrastructure investment to ensure South Carolina can clear its backlog while staying ahead of new demand:
  • $50M in recurring and $200M in non-recurring funding for bridge modernization.
  • $125M in non-recurring funding for interstate acceleration.
  • $100M in recurring funding for CTC funding acceleration.
  • $25M in non-recurring funding for the Local Road Buyback Program.

The budget now heads to the Senate, where members will determine Senate budget priorities before sending it back to the House. At that point, the House will take up H.2 and potentially member-directed spending requests.

In a budget year where South Carolina ranks #1 in the country for real GDP growth and is a national leader in population growth, infrastructure investments are more important than ever.

The Senate gave a second reading to the SCDOT Modernization Bill this week. This legislation is critical to keeping pace with infrastructure needs in high-growth regions like the Charleston metro. The bill includes multiple tools to accelerate projects, expand options and more effectively leverage infrastructure dollars.

We will continue to keep you updated on what is happening in Columbia. If you have questions or want to learn more about the Chamber’s advocacy work at the state level, contact me at bvincett@charlestonchamber.org.