S.C. budget deal adds $3M for legislative pay raises

With a wary eye on Trump administration tariffs and federal budget cuts that experts warn could blow a hole in South Carolina’s budget next year, state lawmakers moved this week to sock away another $500 million for a rainy day.

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That was the key takeaway from a $14.7 billion 2025-26 state budget deal hammered out Wednesday by S.C. House and Senate negotiators — an agreement greased by the last-minute discovery of $1 billion in new money thanks to updated revenue forecasts.

The extra money also allowed negotiators to fully fund each chamber’s top spending priorities, with hundreds of millions added for roads, bridges, Hurricane Helene recovery and more.

The changes come on top of already agreed-upon new spending for income tax cuts, teacher pay raises and an extension of the freeze on in-state college tuition costs.

But grabbing the spotlight was a much smaller expenditure that originated in the Senate — $3 million to raise lawmakers’ total compensation by $18,000 a year.

Currently, lawmakers are paid $10,400 in annual salary, plus a stipend of $1,000 a month for “in district expenses.” Under the agreement, that stipend would rise to $2,500 a month. It’s the first pay raise for legislators since 1995.

Senate Finance Committee Chairman Harvey Peeler, R-Cherokee, one of just 15 no votes on the pay raise when it was first proposed, told reporters he supported it during negotiations because he felt “honor bound” to represent his members.

“We’re here to advocate for the Senate position,” Peeler said.

The full House and Senate chambers are expected to reconvene on May 28 to give final approval to the spending plan.

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