- $14B budget approved after intense 20-hour debate
- Freedom Caucus proposes $1B cuts to lower income tax rates
- All amendments rejected despite heated GOP infighting
- Budget includes teacher raises and hurricane relief funding
- State employees face increased health insurance costs
South Carolina’s House of Representatives passed a $14 billion state budget this week following a contentious debate that exposed deep divisions within the Republican majority. Over 75% of legislators voted in favor of the spending plan, but the process revealed simmering tensions between mainstream Republicans and the conservative Freedom Caucus. The latter group, comprising fewer than 20 representatives, demanded aggressive fiscal reductions to lower income tax rates—a move critics argued lacked actionable details.
The Freedom Caucus sought to slash $1 billion from the budget, aiming to reduce South Carolina’s income tax rate from 6.2% to 5%. Their proposals included drastic cuts to agencies like the Arts Commission and the Sea Grant Consortium. However, none of their amendments gained traction, with even symbolic measures like trimming 10 cents from tourism budgets failing. Analysts note that such intra-party conflicts could affect South Carolina’s creditworthiness by signaling political instability to rating agencies.
Republican leadership emphasized bipartisan collaboration with Governor Henry McMaster and months of committee hearings. House Majority Leader Davey Hiott passionately defended the budget’s allocations for law enforcement, education, and disability services, stating, Our priorities reflect the needs of working families, not political theatrics.Meanwhile, states like Wyoming demonstrate how Freedom Caucus groups can succeed—their legislature recently passed property tax cuts through similar advocacy.
Key budget provisions include a $1,500 teacher pay raise, pushing starting salaries to $48,500 annually, and $220 million for Hurricane Helene recovery. For state employees, health insurance subsidies will increase by $89 million, though workers will shoulder higher premiums for the first time in 10 years. Higher education reforms allow universities to raise tuition for incoming students while freezing rates for current enrollees.
This budget battle underscores a national trend of fiscal conservatives challenging establishment priorities. While South Carolina’s Freedom Caucus hasn’t replicated the success of counterparts in South Dakota or Wyoming, their push mirrors former President Trump’s emphasis on austerity. As states grapple with post-pandemic economic pressures, such debates may redefine Republican policymaking in election cycles ahead.