Widening roads like I-26 is costing more. SC’s McMaster wants more cash for projects
As road projects such as the ongoing widening of Interstate 26 between Columbia and Charleston, the widening of Interstate 95 north of the Georgia border, and reconfiguring Columbia’s “Malfunction Junction” are more expensive, Gov. Henry McMaster wants the General Assembly to set aside more money for road projects.
McMaster in his executive budget will call for $1.1 billion in new road spending in order to avoid delays in construction.
The recommendation comes as lawmakers have $2.4 billion to allocate during this year’s budget discussions; $1.7 billion of that is one-time money.
McMaster’s recommendation, in what would be the final budget he will sign as governor, will include $1 billion of one-time money for infrastructure and $100 million new annual money for roads.
The additional money is needed to keep current road projects moving and on schedule despite inflation, the governor’s office said.
“Over the last several years, South Carolina has made tremendous progress improving our roadways, with major projects underway in every corner of the state,” McMaster said in a press release. “Our population is skyrocketing, and inflation is driving up construction costs, creating potential delays. We can’t make more time, but we can use this new surplus money to keep road projects moving and on schedule.”
McMaster is expected to roll out his full executive budget next week ahead of the beginning of the 2026 legislative session which starts Jan. 13.
Inflation has made road work more expensive. In 2017, one penny of the state’s gas tax could pave 114 miles of two-lane highways. In 2025, that same penny can only pave 87 miles, McMaster’s office said.
The costs of road construction are evident in current projects. Since 2022:
- Widening I-26 between Charleston and Columbia increased to $3.03 billion from $2.02 billion.
- Widening I-95 from the Georgia border to Point South increased to $2.27 billion from $977 million.
- The Carolina Crossroads project, which is reconfiguring the Columbia area commonly referred to Malfunction Junction, increased to $2.8 billion from $2.06 billion.
Additional money for S.C. DOT will help the agency move forward with widening Interstate 85 in Anderson and Oconee counties and Interstate 77 in York and Chester counties, which are “shovel ready” projects, the governor’s office said.
South Carolina’s Secretary of Transportation Justin Powell told lawmakers in December the agency would need about $1 billion more annually for desired road and infrastructure improvements. A bulk of the extra money would go toward interstate and bridge upgrades, Powell said in early December.
Over the summer and fall, House lawmakers toured the state looking for ways to fund the planned infrastructure upgrades. While an increase to the state’s 28.75 cents gas tax is seemingly off the table, the ad hoc committee proposed raising registration fees or creating toll roads. The committee may also look at reducing regulations, which could make some projects cheaper, said committee co-chair state Rep. Shannon Erickson, R-Beaufort.
That committee meets when lawmakers return to the State House on the first day of session.
