Governor Henry McMaster has issued Executive Order 2025-40, directing state government agencies to immediately cease executing spending, procurement, or contract awards based on race-based quotas or set-asides mandated by existing state law.
The Governor’s order effectively stops the use of these race-based provisions, asserting that they are unconstitutional and discriminatory. The directive emphasizes that state contracts should be awarded based on merit and value to the taxpayer, not on identity-based criteria.
To permanently address the issue, the Governor announced that he is collaborating with Senate President Thomas Alexander and House Speaker Murrell Smith to prefile legislation this month. These bills will prioritize the repeal of the unconstitutional provisions when the General Assembly reconvenes next month.
The lawmakers affirmed their commitment to ensuring state law reflects the principle of equal protection and treats every individual equally.
The Executive Order takes aim at several specific state statutes that mandate race-based spending targets:
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SC Code Ann. § 12-28-2930: This statute requires the South Carolina Department of Transportation (SCDOT) to award a minimum of 5% of certain contracts for highway and infrastructure funds to minority businesses annually.
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SC Code Ann. § 11-35-5240: This law requires each state agency to submit a utilization plan demonstrating that 10% of the agency’s total controllable annual budget is spent through minority-owned businesses.
The state’s action follows recent U.S. Supreme Court rulings that scrutinized race-based programs, stating they must adhere to strict scrutiny and cannot rely on racial stereotypes.
The Executive Order is prospective only, meaning no state agency is required to breach any contract already in existence under the previous rules.
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