Update 3/11/26: Adjustments were made to this summary to reflect developments that occurred during the week.
Budget debate started in the House on Monday, with the process expected to last all week and possibly into next week. After finalizing a budget proposal, the House will debate tax cuts.
Meanwhile, the Senate will continue holding budget hearings as well as other committee hearings on crucial legislation. Last week, the Senate Transportation Committee advanced S.831, a major Department of Transportation (DOT) reform proposal, to the Senate floor. It remains to be seen whether this bill or the proposal in the House, H.5017, will be the vessel for DOT reform utilized by the legislature.
Budget
- General Appropriations Bill H.5126 – This bill allocates the budget for next year totaling over $15.1B in spending from the General Fund. House floor debate is underway. Update: This bill has passed the House and moves to the Senate for consideration.
- Capital Reserve Fund H.5127 – House floor debate commences immediately after second reading of H.5126. Update: This bill has passed the House and moves to the Senate for consideration.
Taxes
- Income tax H.4216 – Establishes two new tax brackets (1.99% up to $30,000 and 5.21% for anything above), eliminates all standard and itemized deductions, and adds a graduated deduction of up to $30,000 for those earning under $110,000. Also conditionally lowers the top marginal tax rate until it reaches 1.99%, then lowers the total tax rate until it reaches 0%. House floor debate on Senate amendments commences after second reading of H.5127. Update: This bill passed the House and moves to the Governor's desk for his signature.
- Income tax on overtime H.3368 – Overtime pay and the first $2,500 of bonus pay are excluded from state gross income. House floor debate commences immediately after H.4216 passes the House. Update: This bill has passed the House and moves to the Senate for consideration.
- Hurricane Helene timber tax credit S.682 – Allows taxpayers to apply for a $550/acre tax credit based on timber casualty loss in a federally declared disaster area after Hurricane Helene. This bill caps the total credit for all taxpayers at $25M over the next five years and will be first come first served. A Senate Finance subcommittee is scheduled to hear this bill on Tuesday, March 10 at 3pm. Update: This bill was found favorable and advanced to the full Senate Finance Committee.
Education
- ESA approved items S.692 – Updates the Education Scholarship Trust Fund by removing previously approved personalized learning expenses, specifically home-based programs. It also eliminates certain additional parent reporting requirements and removes the provision allowing a parent’s signature alone to satisfy South Carolina’s compulsory school attendance law. The full Senate Education Committee is scheduled to hear this bill on Wednesday, March 11 at 10am.
- Smart heart act H.3831 – Requires all public and charter schools to have a defibrillator and emergency procedures to deal with sudden cardiac arrest incidents, which will be outlined by the State Board of Education. The full Senate Education Committee is scheduled to hear this bill on Wednesday, March 11 at 10am.
Data centers
- Comprehensive data center regulations S.867 – Creates a statewide office under the Department of Environmental Services to manage data center applications and approve sites, reducing risks presented by local county decisions. There are financial assurance requirements, along with provisions for water usage, noise, light, buffers, and sites that can be used based on infrastructure adequacy. Also establishes a tax incentive program for brownfield site usage that's more targeted than the current incentive structure. Finally, data centers must cover their own energy costs, contracts, and infrastructure, preventing ratepayers from footing the bill. Onsite power generation is allowed. Decommissioning plans are mandatory, and energy/water usage data is public via FOIA requests. A Senate Agriculture and Natural Resources subcommittee is scheduled to hear this bill on Tuesday, March 10 at 9am.
Department of Transportation
- DOT Modernization S.831 – Creates a Coordinating Council for Transportation and Mobility, clarifies internal auditor qualifications, mandates DOT's long-range plan, and defines deputy secretaries' duties. It authorizes public-private partnerships, reciprocal toll agreements, conditional tolls, state immunity waivers, and municipal costs for delays. The bill transfers non-essential roads, imposes development congestion fees, adopts phased design-build and construction manager methods, and updates turnpike funding, studies, bonds (non-state debt), and issuance. Revenue includes higher EV/hydrogen fees to the Highway Fund, public charging taxes, enhanced county "C" funds oversight, procurement exemption for DOT information technology, and designating the Transportation Secretary to the Infrastructure Bank board. This bill is on the Senate floor calendar.
Budget hearings
Tuesday, March 10
- Natural Resources & Economic Development Subcommittee; hearing from Department of Agriculture, SC State Public Services and Agriculture, and South Carolina Ports Authority at 10am.
Wednesday, March 11
- Health & Human Services Subcommittee; hearing from Vocational Rehabilitation, Department of Public Health, and Department of Behavioral Health & Developmental Disabilities at 9am.
- Transportation & Regulatory Subcommittee; hearing from Aeronautics Commission and Department of Motor Vehicles at noon.
Thursday, March 12
- Higher Education Subcommittee; hearing from Francis Marion University and Technical Colleges System at 10am.
- K-12 Education Subcommittee; hearing from First Steps, Archives & History and Wil Lou Gray Opportunity School at 10am.
