What Passed, What’s Next: South Carolina State House Update

In the closing days of the 2025 legislative session, South Carolina lawmakers finalized a $14.7 billion budget for fiscal year 2025–26 following days of conference committee negotiations. Now, under the Sine Die resolution, the full General Assembly is set to reconvene on Wednesday, May 28, to ratify the finalized budget, the last major step before the bill heads to Governor McMaster’s desk for signature.

The 2025 session has been productive, with 96 bills ratified to date—93 signed into law, and 3 vetoed by the Governor.

Here’s your breakdown of what happened and what to watch:

Budget Committee Unanimously Approves Lawmaker Pay Raise

The six-member budget conference committee composed of House and Senate members unanimously approved an $18,000 raise for South Carolina lawmakers. If adopted by the full General Assembly and signed by Governor Henry McMaster, it would mark the first legislative pay in nearly 30 years.

In addition to the base salary raise, lawmakers’ in-district expense stipends would increase from $1,000 to $2,500 per month, totaling an additional $18,000 annually.

Supporters say the increase reflects the true costs of constituent services and travel across large and often rural districts. Critics argue the optics are poor, particularly amid ongoing inflation.

Key Budget Highlights

The finalized FY 2025-2026 budget, now awaiting ratification, includes several notable investments and policy decisions:

• Teacher Pay: The minimum starting salary for public school teachers will increase to $48,500, aimed at improving recruitment and retention as the state seeks to remain regionally competitive.

• State Employee Raises: All state employees will receive at least a 2% raise or be elevated to a new minimum salary, following a state-commissioned study that found public sector compensation lags behind market standards.

• Income Tax Cut: The top income tax rate will be reduced from 6.3% to 6%, decreasing revenue by an estimated $300 million, in line with Republican priorities around long-term tax relief.

• Earmarks Eliminated: Lawmakers opted to eliminate the practice of earmarks in favor of a more centralized funding model for district-level projects.

• Unexpected Surplus: An unanticipated $1 billion surplus gave legislators flexibility to fund key initiatives and retain approximately $494 million for hurricane relief and reserve funds.

  
  

Contentious Budget Provisos

Several budget provisos, temporary laws tied to the budget, sparked spirited debate:

• Columbia Conversion Therapy Ban: A proviso remains that would withhold state funds from any municipalities enacting bans on conversion therapy for minors, directly challenging Columbia’s ordinance.

• School Safety Funding Limited: A proposal to allow all districts to hire additional security was scaled back to include only large districts, raising concerns about equitable access to safety resources.

• SLED Protection for Politicians: A proviso allowing the State Law Enforcement Division discretion to provide security for politicians and candidates remains, though some senators argued it should be a standalone bill. 

• Gender and Oath Proposals Dropped: Proposals requiring state documents to recognize only two genders and mandating an oath for public officials were dropped due to relevance concerns and related legislative conflicts, including one involving the Charleston County Library Board.

Signed and Awaiting Signature

Several key bills have been signed into law including:

• Tort Reform Legislation: Limits damages in lawsuits, seen as a win for the business community.

• School Choice Expansion: Expands eligibility for Education Savings Accounts (ESAs), allowing more families to use public funds for private or alternative schooling.

Awaiting signature:

• Energy Reform Package: A sweeping restructuring of parts of South Carolina’s energy regulatory system.

• Election Integrity Measures: A bill modifying early voting procedures and tightening voter ID requirements.

The General Assembly reconvenes Wednesday, May 28, to ratify the state budget. Lawmakers will also address gubernatorial vetoes and official close out the 2025 session.