South Carolina Governor issues EO halting MBE goals

SC News - Published Dec 29, 2025

Governor Henry McMaster of South Carolina recently issued an executive order prohibiting State government agencies from considering race in procurement and contracting, including where such consideration is required by State law. The press release announcing the order notes that the Governor is collaborating with legislators to prefile legislation in January of 2026 which would repeal those requirements.

Among the relevant State laws are a requirement for the South Carolina Department of Transportation (SCDOT) to spend at least 5 percent of its annual contract dollars meeting certain criteria with minority-owned businesses (MBEs), and a general provision requiring state agencies to submit utilization plans demonstrating a goal of spending 10 percent of funding with MBEs.

The order, in addition to prohibiting state agencies from maintaining these goals, further requires all governmental agencies to report to the Governor's office "any regulation, policy, or practice that requires or permits the department, agency, or other office to consider race in any procurement or contract decision". The order specifies that it is "prospective only", meaning existing contracts prior to the issuance of the order will not be breached.

Read the press release on the order from the Governor's office at https://governor.sc.gov/news/2025-12/gov-henry-mcmaster-orders-halt-unconstitutional-race-based-spending-quotas-state.

Read the executive order at https://governor.sc.gov/sites/governor/files/Documents/Executive-Orders/2025-12-03%20FILED%20Executive%20Order%202025-40%20-%20Prohibiting%20Race-Based%20Discrimination%20in%20Government%20Contracting.pdf