SCDOT Faces $2.7 Billion Funding Gap Amid Rapid Population Growth

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South Carolina’s top transportation official is raising concerns about long-term funding as the state’s road system continues to grow at a rapid pace.

This week, South Carolina Department of Transportation (SCDOT) Secretary Justin Powell briefed lawmakers on the Department of Transportation Modernization Ad Hoc Committee. He highlighted progress made in recent years, but also warned that the state will need additional funding to maintain momentum.

South Carolina operates the fourth-largest state highway system in the nation, with 41,000 miles of roads. The SCDOT’s annual budget currently exceeds $2.7 billion, but Powell explained that the last major road funding bill passed in 2017 was never designed to meet today’s growth demands. He said that if South Carolina is to stay on track with its 2050 plan—focused on system recovery and interstate investment—more financial resources will be essential.

Powell also pointed to an emerging funding gap between drivers of gas-powered vehicles and electric vehicles. Gasoline vehicle owners contribute about $200 per year to road maintenance through fuel taxes, while electric vehicle drivers pay only around $60 annually. He noted this imbalance creates challenges for sustaining road upkeep as EV adoption increases.

The committee plans to hold meetings across the state during the legislative off-session to gather public input.

The next session is scheduled for September 10 in Greenville, where residents will have the chance to share their perspectives on the state’s transportation future.