COLUMBIA, S.C. — South Carolina’s Senate Finance Committee passed a $14.4 billion proposal Wednesday that cuts all earmarks from the state’s 2025-26 fiscal year budget.

Earmarks, also known as community improvement projects, are one-time payments given to non-profits or local governments. They can include projects like roadwork or law enforcement upgrades.   

Lawmakers said the financial surplus generated from the proposal will help cut the state’s income tax rate to 6%; a measure many at the State House have been adamant to push forward.

“I do want to applaud our chairman for taking the lead to make sure we cut out some of the earmarks that have found their way into our state budget and focus instead on the taxpayer, on all the taxpayers, instead of just special interest groups,” said Senator Larry Grooms (R-Berkeley) after a soft round of applause.

Last year’s state budget allocated more than $430 million in earmarks, with the biggest portion dedicated to tourism, recreation and sports.

Shortly after the committee passed the proposal, Senate Finance Committee Chairman Harvey Peeler (R-Gaffney), and House Ways and Means Chairman Bruce Bannister (R-Greenville) released a rare joint-statement in support of the shift.

“As the chairmen of the chambers’ budget writing committees, our top priority is to ensure the responsible expenditure of the taxpayers’ dollars. Over the last few years, we’ve been able to provide for a great deal of community investments and we’ve made significant strides in the transparency of those investments,” the chairmen said in the statement. “However, in this appropriations bill, we’ve agreed instead to focus on what should be every member’s top priority — tax reform.”

The budget proposal is scheduled to be heard by the full Senate chamber beginning April 22.