---
title: "McMaster finalizes state budget, cites tax relief"
url: https://www.hereclinton.com/2026/08/20/mcmaster-finalizes-state-budget-tax-relief-roads/
date: 2026-08-20T17:23:07+00:00
modified: 2026-08-20T17:23:07+00:00
author: "Mauricio J. Han"
categories: ["Politics"]
site: "HERE Clinton"
attribution: "HERE Clinton"
---

# McMaster finalizes state budget, cites tax relief

*Source: [HERE Clinton](https://www.hereclinton.com/2026/08/20/mcmaster-finalizes-state-budget-tax-relief-roads/) — August 20, 2026 by Mauricio J. Han*

Governor Henry McMaster has completed his review of South Carolina’s state budget, finalizing the spending plan more than six weeks into the fiscal year. The General Assembly approved the budget last week, allowing the Governor to sign it and issue vetoes.

South Carolina had been operating under a temporary spending plan since July 1 because lawmakers had not completed budget work by the deadline. Governor McMaster stated that 92% of his priorities were included in the final budget. These priorities encompass income tax relief and hundreds of millions of dollars allocated for road and bridge improvements, although the approved transportation funding was less than his initial request.

The Governor expressed satisfaction with the collaboration between the people and the legislature, noting an absence of significant disputes. The budget does not contain earmarks, as House and Senate leaders could not agree on the funding amounts for local projects for each chamber. Governor McMaster, a long-standing critic of earmarks, indicated that many would have faced vetoes, stating that while some were good, earmarks are not an effective way to govern.

One specific veto has drawn attention. It concerns an additional $150 million sought for cost overruns at the Scout Motors plant under construction in Richland County. Lawmakers had required an audit before releasing these funds, a requirement Governor McMaster vetoed, allowing the funding to proceed. He characterized the audit requirement as bad business policy that could harm the state’s reputation as a reliable partner, emphasizing that the money needs to be paid.

As his administration enters its final months, Governor McMaster hopes that future state leaders will continue to invest in education and re-evaluate South Carolina’s earmark process.