In a preview of his upcoming 2026 executive budget, Governor Henry McMaster announced earlier this week a recommendation for the General Assembly to allocate an additional $1.1 billion in new funding for the state’s infrastructure. The proposal is designed to keep major South Carolina Department of Transportation (SCDOT) projects on schedule as rising labor and material costs threaten to derail construction timelines.
The request follows an assessment from SCDOT Secretary Justin Powell, who noted that while the state has reached record levels of investment, the purchasing power of that capital has been significantly eroded by inflation.
The Rising Cost of Progress
Since 2017, the scale of construction in South Carolina has expanded dramatically, growing from $2.7 billion in active projects to nearly $7 billion today. However, the cost of completing these high-priority interstates and bridges has skyrocketed over the last two years.
SCDOT data highlights three major projects facing massive budget adjustments:
| Project Location | 2022 Estimated Cost | Current Estimated Cost | Percent Increase |
| I-26 Widening (Charleston to Columbia) | $2.02 Billion | $3.03 Billion | 50% |
| I-95 Widening (GA Border to Point South) | $977 Million | $2.27 Billion | 132% |
| Carolina Crossroads (Columbia) | $2.062 Billion | $2.751 Billion | 33% |
The impact of inflation is also visible in routine maintenance. In 2017, a single penny of the state’s gas tax could fund the paving of 114 miles of two-lane highway. By 2025, that same penny could only cover 87 miles, representing a significant decrease in operational efficiency.
Maintaining Momentum Amid Growth
Governor McMaster emphasized that the state’s rapidly increasing population makes these road improvements a necessity rather than a luxury. By utilizing a state budget surplus, the administration hopes to prevent “busted budgets” and crippling delays that could impact the daily commute of thousands of residents.
Since 2017, the state has achieved several milestones:
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Over 10,000 miles of roadway placed under paving contracts (roughly 25% of the state system).
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More than 450 bridges replaced or rehabilitated.
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Completed major improvements on I-85, I-20, and I-26.
Beyond maintaining current sites, the new funding would allow SCDOT to accelerate the “shovel-ready” status of upcoming expansions. Key among these are the widening of I-85 in Anderson and Oconee counties and the highly anticipated expansion of I-77 through York and Chester counties.
The Governor is expected to release the full 2026-27 fiscal year executive budget in the coming days, which will detail exactly how the surplus funds will be distributed across the state’s infrastructure priorities.
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