State of the State: 2025 vs 2026
Governor Henry McMaster -- comparing priorities year over year
Shift from Specific Policy Proposals to Legacy-Framing and Broad Vision
Governor McMaster's 2026 State of the State address marks a dramatic tonal shift from a policy-dense, budget-driven speech in 2025 to a legacy-oriented, historically expansive reflection on his nine years in office. The 2025 address was packed with specific dollar figures, program names, and legislative asks — $1.8 billion surplus, $193.5 million in tax cuts, $100 million for bridges, $150 million for a new Public Assistance disaster program, $13.7 million for permitting staff, $30 million for the Education Scholarship Trust Fund, and numerous other line items. The 2026 speech, by contrast, opens with an extended historical narrative spanning Native Americans, European colonists, and the Revolutionary War, and reframes many of the same policy areas as accomplishments already achieved rather than proposals requiring action.
Infrastructure and fiscal policy illustrate this shift clearly. In 2025, McMaster proposed cutting the income tax rate from 6.2% to 6% ($193.5 million), asked for $100 million for bridge construction, and $50 million for DOT hurricane-related costs. In 2026, the specific tax cut figure disappears — replaced by a general call to keep cutting "as much as we can, and as fast as we can." The infrastructure ask balloons to $1.1 billion in new surplus money for roads and bridges, framed as urgently necessary due to inflationary pressures, but the granular bridge statistics (2,400 of 8,400 needing repair) and the hurricane-specific DOT request are gone. The 2026 speech also introduces a new concern about unrestrained out-of-state population growth straining infrastructure, water, sewer, schools, and healthcare — a theme entirely absent in 2025.
On education, the 2025 speech asked the legislature to raise the minimum starting teacher salary to $50,000 "this year, not next year" from $47,000. The 2026 speech announces it will go to $50,500 from $48,500, representing a 68% increase since 2017, and pivots to calling for universal full-day 4K regardless of household income — a significant expansion from the 2025 focus on low-income enrollment. The Education Scholarship Trust Fund request drops its specific $30 million appropriation figure. The 2025 proposal to allow debit card purchases for lottery tickets (projected to generate $52 million) vanishes entirely in 2026.
Mental health and government restructuring shift from active legislative requests to a victory lap. In 2025, McMaster urgently asked the legislature to convert the Department of Mental Health and the Department of Disabilities and Special Needs into cabinet agencies. In 2026, he celebrates that this was accomplished, describing the creation of the new Department of Behavioral Health and Developmental Disabilities as "the most significant government restructuring and accountability effort in over thirty years." Similarly, the 2025 proposal for a new neurological hospital (80-bed critical care unit and 32-bed rehab unit operated by USC) is completely absent in 2026. A major new priority in 2026 is judicial reform — gubernatorial appointment of judges and a complete overhaul of the magistrate court system including state-funded salaries and a requirement that magistrate judges be attorneys — topics never mentioned in 2025.
New Priorities in 2026
- +Called for assessment of whether state infrastructure and government services can handle 'unrestrained out-of-state population growth,' citing U-Haul ranking South Carolina as the #1 destination for moving trucks.
- +Proposed universal full-day 4K for all children regardless of household income, expanding beyond the 2025 focus on low-income families only.
- +Advocated for gubernatorial appointment of all state judges with Senate advice and consent, replacing the current system where the legislature selects judiciary members.
- +Proposed comprehensive magistrate court reform: state-funded judicial salaries, requirement that magistrate judges be licensed attorneys, elimination of county residency requirements, and Chief Justice oversight of magistrate court operations across all 46 counties.
- +Highlighted the completion of the new State Water Plan by the WaterSC working group and the Department of Environmental Services after the plan had 'languished without update or consensus for over twenty years.'
- +Invited the Duke and Duchess of Edinburgh to join South Carolina's 250th anniversary celebration of the Revolutionary War's Battle of Fort Sullivan on Carolina Day.
- +Cited South Carolina's nuclear energy leadership more assertively, connecting the V.C. Summer reactor restart to President Trump's recognition that 'reinvigorating America's nuclear industrial base is critical' to national security.
- +Touted the state's lowest-in-the-nation recidivism rate and described corrections staffing shortages as having been 'reversed.'
Dropped from 2025
- −The proposed construction of a world-class neurological hospital with an 80-bed critical care unit and 32-bed rehabilitation unit operated by the University of South Carolina was not mentioned in 2026.
- −The specific proposal to cut the income tax rate from 6.2% to 6%, saving taxpayers $193.5 million, was replaced by a vague call to keep cutting without a specific target rate or dollar amount.
- −The $13.7 million request for the Department of Environmental Services to hire staff and establish a hard 90-day permitting deadline was absent in 2026.
- −Hurricane Helene disaster recovery funding — including $150 million for a new SC Public Assistance program, $50 million for DOT debris removal, and $40 million to replenish Disaster Relief and Resilience Reserve funds — was not discussed in 2026.
- −The call to review and reform the state's 42+ professional and occupational licensing boards overseeing 500,000 workers was dropped entirely.
- −The request for civil justice/tort reform addressing joint and several liability rules and 'crippling financial judgments' was not mentioned in 2026.
- −The proposal to allow education lottery ticket purchases via debit cards, estimated to generate $52 million in additional revenue, was absent.
- −The specific $2,000 state income tax credit for active-duty law enforcement officers, firefighters, first responders, and EMTs ($43.3 million in tax relief) was not repeated.
- −The $43.2 million request for Department of Corrections for cell phone interdiction, hiring, medical/mental health services, and deferred maintenance at 21 prisons was not specifically renewed, though corrections was praised.
- −The request for additional SLED funding to combat animal fighting and dog fighting was not mentioned.
- −The specific PEBA/State Health Plan cost containment proposal — requiring PEBA to identify savings measures after four consecutive years of $112 million annual increases — was dropped.
- −The $95 million request in lottery funds for Workforce Industry Needs Scholarships through the Technical College System was not specifically repeated, though free technical college scholarships were discussed in broader terms.
- −The $80 million proposal to ensure Pell Grant-eligible students have sufficient state aid for any in-state public institution was not restated with a specific dollar figure.
Shifted Emphasis
- ↔Teacher pay shifted from an urgent plea to raise the minimum to $50,000 'this year, not next year' (from $47,000) to an announcement of raising it to $50,500 from $48,500, framed as a culminating achievement of a nine-year effort representing a 68% increase.
- ↔The 4K program shifted from proposing 'additional investments' for low-income children (with 7% enrollment growth expected) to calling for universal 4K for all children regardless of income — a major policy expansion.
- ↔School resource officers shifted from 'let's finish this job' (177 schools without SROs in 2025) to celebrating near-completion (102 remaining), bolstered by a dramatic real-world anecdote about a kidnapping thwarted at Chester Park Elementary School.
- ↔Mental health and government restructuring shifted from an active legislative demand to make agencies into cabinet departments to a retrospective celebration of having completed 'the most significant government restructuring in over thirty years,' including the creation of the Department of Behavioral Health and Developmental Disabilities.
- ↔Energy policy shifted from asking the legislature to pass stalled energy legislation and listing multiple energy initiatives (PowerSC, SC Nexus, Tech Hub) to framing South Carolina as the leader of a 'nuclear renaissance' tied to the Trump administration's national security priorities.
- ↔Infrastructure funding scaled up dramatically from a $100 million bridge appropriation request in 2025 to a $1.1 billion request in 2026, reframed around inflationary cost pressures threatening project delays.
- ↔Conservation and land preservation shifted from highlighting specific 2024 achievements (96,000 acres, $143.5 million invested, with named properties like Snow's Island and Waties Island) to a broader nine-year retrospective of nearly 400,000 acres preserved, including a 62,000-acre Pee Dee easement, the State Water Plan completion, and the USS Yorktown cleanup.
- ↔Higher education tuition freeze went from the sixth consecutive year call with specific dollar amounts ($80 million for Pell-eligible students, $20 million for private/HBCU tuition grants) to a seventh-year mention without specific funding figures, while the systemic review of 33 public institutions was repeated but with sharper questions about potential consolidation.
- ↔The overall tone shifted from a detailed, proposal-heavy executive budget presentation with over a dozen specific appropriation requests to a sweeping retrospective and legacy speech, with far fewer concrete dollar figures and more philosophical reflection on South Carolina's identity and future.
- ↔Capital investment announcements grew from $8.2 billion and 5,500 new jobs in 2024 (described as third-best year) to $9.1 billion and 8,100 new jobs in 2025, with cumulative totals rising from $44.7 billion to $53.7 billion since 2017.
- ↔Law enforcement pay shifted from proposing a specific $14.5 million for raises and new hires to broadly celebrating that officers have received raises 'as high as 52%' and calling for continued investment without a specific dollar amount.
Policy Topics Addressed
Affordability
Governor McMaster emphasized continued income tax cuts, noting South Carolina's rate was once the highest in the Southeast and 12th highest nationally. He reported $1.275 billion in savings from tax cuts over five years and proposed further reductions, saying "if the General Assembly can find a way to eliminate it altogether, I will sign it the second it arrives on my desk." He also highlighted seven consecutive years of frozen college tuition for in-state students.
Agriculture
Governor McMaster emphasized South Carolina's agricultural heritage and the importance of conserving working farms and forests. He noted that the state has preserved almost 400,000 acres of historically or environmentally significant lands in less than 10 years, including working farms.
Economy & Jobs
Governor McMaster announced over $9.1 billion in new capital investment and 8,100 new jobs in 2025, with $53.7 billion total since 2017. He highlighted specific companies including Hampton Lumber, Isuzu North America, and Woodward Inc. investing hundreds of millions. He emphasized seven consecutive years of frozen college tuition, workforce training through technical colleges, and nuclear energy leadership with plans to restart V.C. Summer Nuclear Station construction.
Education
Governor McMaster celebrated raising the minimum teacher starting salary to $50,500 — a 68% increase since 2017 — and seven consecutive years of frozen college tuition. He championed full-day 4K expansion (30% enrollment increase), universal Education Scholarship Trust Fund expansion, and the achievement of an SRO in virtually every public school (up from 406 of 1,283 in 2018). He urged moving toward universal 4K regardless of income and called for a comprehensive review of the state's 33 public higher education institutions.
Environment & Energy
Governor McMaster declared South Carolina will lead the nation's nuclear renaissance, noting over half the state's electricity is safely generated by nuclear energy with seven operating reactors. He highlighted Santee Cooper's decision to restart construction of two unfinished reactors at V.C. Summer and the creation of the PowerSC working group and SC Nexus consortium for energy planning. He also emphasized the new State Water Plan completed last month.
Government Reform
Governor McMaster highlighted the most significant government restructuring in over 30 years, dissolving commission-run agencies (Health and Environmental Control, Mental Health, Disabilities and Special Needs) and reconstituting them as gubernatorial cabinet agencies for better accountability. He also proposed reforming the Summary Court system to require magistrate judges to be attorneys, with state-funded compensation and centralized oversight by the Chief Justice.
Healthcare
Governor McMaster described the most significant government restructuring in over 30 years, dissolving the commission-run departments of Health, Mental Health, and Disabilities and reconstituting them as gubernatorial cabinet agencies. He highlighted the creation of the new Department of Behavioral Health and Developmental Disabilities and reported these new agencies are now 'collaborating, communicating and cooperating' to modernize healthcare access.
Housing
Governor McMaster addressed housing indirectly by raising concerns about whether infrastructure and government services can keep pace with unrestrained out-of-state population growth, noting South Carolina was ranked number one by U-Haul for destination moves.
Infrastructure
Governor McMaster called for $1.1 billion in additional surplus funds for road and bridge construction, noting almost $7 billion in active transportation projects underway — up from $2.7 billion in 2017. He emphasized water and sewer infrastructure, completion of the State Water Plan, and nuclear energy infrastructure, stating South Carolina will lead the nation's nuclear renaissance with the restart of V.C. Summer reactors.
Public Safety
Governor McMaster emphasized funding police, closing the revolving door for career criminals, and keeping guns out of criminal hands. He highlighted that every public school now has funding for a school resource officer — up from 406 of 1,283 schools in 2018. He told the dramatic story of an SRO-funded officer stopping a child abduction at Chester Park Elementary School. He also touted the state's lowest recidivism rate in the nation and reported substantial law enforcement pay raises of up to 52% in three years.
Social Services
Governor McMaster highlighted the statewide expansion of full-day 4K education, with enrollment increasing 30% to 18,411 students since expansion, and urged moving toward universal 4K regardless of household income. He detailed the Education Scholarship Trust Fund providing K-12 scholarships for low-income parents and noted the state's mental health system restructuring, consolidating multiple agencies into a new Department of Behavioral Health and Developmental Disabilities.
Tax & Budget
Governor McMaster highlighted five consecutive years of income tax cuts totaling $1.275 billion in taxpayer savings and proposed cutting the personal income tax rate further, stating he would sign an elimination bill 'the second it arrives on my desk.' He called for an additional $1.1 billion in surplus money for infrastructure projects and noted the state has had large budget surpluses year after year, enabling seven consecutive tuition freezes for in-state college students.
Technology
Governor McMaster emphasized South Carolina's role in leading a national nuclear energy renaissance, noting the state generates over half its electricity from nuclear energy with seven operating reactors. He highlighted the Santee Cooper decision to restart construction of two nuclear reactors at V.C. Summer and the SC Nexus consortium designated as one of 12 Regional Technology and Innovation Hubs, focused on power technology.
Veterans & Military
Governor McMaster opened by honoring four service members lost in the line of duty in 2025 and extensively discussed South Carolina's military heritage in the context of the nation's 250th anniversary. He highlighted the state's role in the American Revolution with more than 200 battles and skirmishes fought on South Carolina soil, and emphasized the state's nuclear energy leadership as critical to national security.