S.C. moves to kill ‘DEI’ contracting before federal funding cut-off

By Jack O’Toole, Capitol bureau  |  The state of South Carolina and its largest city took dramatic steps this week to begin dismantling decades-old programs designed to increase participation by women- and-minority-owned businesses in government contracting.

The moves came in response to a series of Trump administration directives aimed at eliminating diversity, equity and inclusion (DEI) initiatives at every level of government. In his 2024 campaign, President Donald Trump vowed to end what he termed “very unfair laws” arising from “anti-White feeling” in the country.

Credit: Unsplash

Trump supporters, including S.C. Gov. Henry McMaster, have characterized laws calling for specific levels of women and minority participation in contracts as “a racial spoils system.” Opponents say they’re a necessary remedy for previous, and ongoing, discrimination.

State and local governments that refuse to comply with the Trump administration directives stand to lose billions of dollars in federal assistance, as state and Charleston officials stressed when explaining their actions.

‘Constitutional requirement’ or an ‘assault on women’?

Gov. Henry McMaster began the state’s compliance process with a Dec. 3 executive order directing agencies to stop following state laws that set targets for women and minority participation in state contracting. 

In comments to reporters, McMaster argued the action was a necessary response to recent court orders calling the legality of such programs into question, as well as a Jan. 21 Trump executive order that called DEI “pernicious discrimination” that violates the law.

“If we didn’t abide, then our people would be subject to losing federal money,” he said. “In all likelihood, those funds would not flow with these restrictions in our procurement law.”

Specifically, McMaster pointed to two laws he called “unconstitutional and discriminatory” — one that requires all departments to report regularly on progress toward a goal of 10% women and minority contracting, and another that directs the S.C. Department of Transportation to hit a 5% participation rate. 

But critics like state Rep. Jermaine Johnson, an announced Democratic candidate for governor from Richland County, note the programs targeted by McMaster’s order open up contracting opportunities for a majority of South Carolinians — in particular women, who represent 51% of the state’s population.

“We all know that a lot of these contracts are male dominated, and we’re going to take opportunities away from women?” he told Statehouse Report on Dec. 4. “That’s just wrong, especially in a state where women are still being underpaid, and still almost being treated like second-class citizens.”

League of Women Voters of S.C. Vice President Lynn Teague expanded on those concerns.

“Women will suffer from this,” Teague said. “We see it as part of an attack on the rights of women from every direction, including efforts to pass draconian abortion bans and attacks on the professional status of jobs that are dominated by women.”

‘A confusing time’ in Charleston

Meanwhile on Dec. 2 in Charleston, , Mayor William Cogswell and city council gave initial approval to an ordinance ending the city’s women- and minority-contracting program, altering policies at its small business incubator, and changing the names of several departments and committees, removing all references to race.

The moves were necessary, Cogswell said, to meet a year-end Trump deadline that threatens $100 million in federal grants that the city relies on.

Despite concerns voiced by several members, the lone dissenting vote was cast by long-time Councilman Dudley Gregorie, who asked Cogswell and City Attorney Julia Copeland whether the Trump administration had clearly defined DEI at any point in its executive orders or communications with the city.

After learning the answer was no, Gregorie questioned how the city could know if its actions would bring it into compliance.

“The federal government or the state at a minimum owes us that explanation,” he said. “We still could have programs they could find and say, ‘This is a DEI program. You’re not in compliance, Charleston, and we’re going to hold up all your money.’” 

What’s more, Gregorie said, the lack of a clear definition had led the city to focus its compliance efforts on some diversity programs, mostly race-based, while ignoring others.

“I just want everyone to know, we’re not going back,” Gregorie said. “We’re not sitting on the back of the bus anymore. And that’s where this is headed.”

Cogswell acknowledged those concerns and others, noting that the language would probably be amended before final passage. 

“It’s a confusing time,” he said.

Looking forward

In a Dec. 3 release, leaders in the S.C. House and Senate said they were ready to codify the governor’s order with legislation next year.

“I am confident my colleagues in the Senate share my belief that state government must reflect equality under the law in all its endeavors and ensure our statutes fully comply with the Constitution,” said Senate President Thomas Alexander, R-Oconee.

S.C. House Speaker Murrell Smith, R-Sumter, added, “Discrimination is wrong, and its misguided use as a remedy is worse. The House will address this when we return in January.”

But in comments to Statehouse Report, some legislators and business advocates were already looking past what they see as the inevitable repeal of these laws to ask, What comes next?

Specifically, they said, they want to know how lawmakers will continue to invest in women and minority entrepreneurs — and just as important, how they plan to keep the state’s contracting process from devolving back into a good-ole-boy system.

“Look at our rural areas we want to see thriving,” said Frank Knapp, president of the Small Business Chamber of Commerce. “It’s minority small businesses that can do that. And that’s an investment the state ought to be involved with.”

Charleston Democratic Sen. Deon Tedder said he shared those concerns, noting the state needs to support its home-grown businesses with a contracting process that gives everyone a real opportunity.

To that end, he said, he thinks it’s time for the state to adopt dramatically enhanced transparency laws requiring full disclosure of how and why every contract is awarded.

“I don’t have an issue with true merit-based competition, but we need to make sure it’s really on the merits, and not just because you know somebody who knows somebody,” Tedder said. “That’s already going on, and if we’re not careful this will just make it worse.”

Former S.C. governor discusses global hunger, fostering unity

Staff reports | International aid leader and former S.C. Gov. David Beasley shared his commitment to combating the global hunger crisis at a Dec. 3 event at the Circular Congregational Church in downtown Charleston.   

Beasley began his speech by raising his hand and counting silently to five before the audience of more than 100 Charleston residents.

Former S.C. Gov. David Beasley in 2017 in Uganda. Photo courtesy World Food Program

“Someone just died of hunger,” said Beasley, who accepted a Nobel Peace Prize on behalf of the World Food Program in 2020.  “Every 5 to 9 seconds, a life is lost because of this crisis. A meal is a right, not a privilege, for every person on this planet.”

The former governor from Society Hill served as executive director of the United Nations World Food Program from 2017 to 2023, leading the organization through some of the most challenging humanitarian crises in recent history. He shared stories of his hands-on work addressing hunger in conflict zones, often collaborating with world leaders across the political spectrum.

“My career has taken me across the country and all around the world, meeting with Democrats, Republicans and global leaders and not one person has told me they’re OK with this division,” Beasley said. “We are the most connected we’ve ever been as a world digitally, and yet so divided politically. Regardless of your views of the world, the question is: what can each of us do to help?”

Beasley, who has raised millions of dollars to attack global hunger, acknowledged many people question why they should contribute to global aid efforts, especially in countries far from their own. He explained, however, that fostering happy, healthy and stable nations abroad ultimately benefits everyone, creating greater security, unity and opportunity at home. 

“People wonder why they should send their taxpayer dollars down to third world countries, which I understand,” Beasley said. “First, I would hope people do it out of the goodness of their heart, but also, if you want to develop a greater budget for programs in your own country, addressing the root causes of disability globally only helps with that. We want to stabilize other countries, which in turn stabilizes the world.” 

Beasley concluded with a call for unity and civic action.

“Today, when I see so much division around the world, it breaks my heart,” said Beasley, who served as South Carolina’s governor from 1995 to 1999. “We are at a crossroads, and what America needs most is to come together. That begins with each of us—sitting down, seeing one another as equals and recognizing that everyone is equally deserving. America can’t be great unless America is good.”

In other recent news

S.C. lawmaker calls for emergency meeting over measles outbreak. Rep. Wendell Gillard, who represents District 111, urged the South Carolina House Medical, Military, Municipal and Public Affairs Committee to meet and address what he called a “critical” public health situation.

2026: Mace pushes bill to require ID for SNAP benefits. Gubernatorial candidate Rep. Nancy Mace wants additional measures in place to reduce the amount of fraud in the Supplemental Nutrition Assistance Program.

Former S.C. GOP governor, leading state Democrat bringing schools to Gaza. Former S.C. Gov. David Beasley is teaming up with longtime state Democrat and tech activist Phil Noble to bring 50 solar powered tent schools to the Gaza Strip in an initiative funded by the United Arab Emirates.

The latest on the 300 S.C. National Guard troops heading to D.C. Details of their movements were not immediately shared but their duty comes a week after a West Virginia soldier was killed in a shooting attack the Trump administration is calling an act of terrorism.

Federal loophole opens the door to sports betting in S.C. A federal law that allows so-called ‘prediction markets’ to operate in all 50 states is being used to bring sports betting to S.C., despite a state law that bans the practice.

S.C. pauses new child care scholarships after funding issue. The S.C. Department of Social Services has stopped accepting many new applications for the vouchers that help almost 50,000 children across the state get child care due to a delay and expected reduction in federal funding.

What did I do wrong?

Award-winning cartoonist Robert Ariail has a special knack for poking a little fun in just the right way.  This week, he takes a poke at U.S. Sen. Lindsey Graham, R-S.C., over a proposal to sue the U.S. Department of Justice for getting his phone records.

Stand up to the hypocrisy coming from Washington

By Andy Brack | Here’s a frightening question that Americans should consider:  Why are so many people willing to accept stuff now that they couldn’t have imagined being tolerated just a few years ago?

For example, what if former President Barack Obama had decided to use National Guardsmen from around the country in Dallas, Texas, to clean up crime?

As it happens, he asked such a rhetorical question during an October podcast:  “If I had sent in the National Guard into Texas and just said, ‘You know what? A lot of problems in Dallas, a lot of crime there, and I don’t care what [Texas Gov. Greg] Abbott says. I’m going to kind of take over law enforcement, because I think things are out of control.’ 

Then he reflected: “It is mind-boggling to me how Fox News would have responded.”  But President Donald Trump has gotten a pass.

In fact, Obama continued, it’s just plain wrong to use the military on domestic soil, except in an extreme emergency.  He said using the military in that way seemed to be nothing but “a genuine effort to weaken how we have understood democracy. And that was understood by Democrats and Republicans.”

So why are Americans not holding the increasingly sleepy Trump accountable for things like using masked immigration agents to rip apart families and patrol streets in blue states when other presidents never would have conceived of crossing such lines and standards.  Imagine if:

Credit: The National Guard

Biden:  What if Joe Biden welcomed North Korea and Iran with open arms, giving them carte blanche to America?

Bush:  What if George W. Bush had a defense secretary who allowed United States secrets to be discussed in an insecure chat room?  

Clinton:  What if Bill Clinton fired everybody at the Justice Department when it was investigating him?  Or what if he got blue states to redraw congressional maps so he could have his way with Congress?

Bush:  What if George H.W. Bush turned the CIA into a domestic spying group to watch American companies and political parties?  Or what if he embraced KKK policies frequently?

Reagan:  What if Ronald Reagan accepted a free jet from Russia?  

Carter:  What if Jimmy Carter took away the right to own a handgun?

Ford:  What if Gerald Ford raised taxes on the regular guy just to give a phenomenally huge tax break to rich people?

Nixon:  What if Richard Nixon had pardoned all of his buddies – and himself – instead of resigning?

Johnson:  What if Lyndon Johnson ordered the shooting of protesters at the 1968 Democratic National Convention?

Bottom line:  You can’t imagine any of these past presidents doing any of this.  And you wouldn’t have tolerated it.

Through the years, America has been an increasingly tolerant place.  But with the rise of MAGA and the intellectual laziness of too many Americans, things that were intolerable in the past have become accepted by default.

And that’s wrong – an excoriation of the traditional American values of life, liberty and the pursuit of happiness.  

What is happening now in American health clinics, research facilities, national parks, schools, universities, corporate boards, federal agencies, federal courts and the military because of shenanigans in Washington is nothing short of shameful – a slap in the face to American exceptionalism and what the framers of American democracy believed.

We must stop the hypocrisy.  As a nation, we can do better.  We must demand better.  We must stand up to autocratic threats.  

Andy Brack is editor and publisher of Statehouse Report and the Charleston City Paper.  Have a comment?  Send to:  feedback@statehousereport.com.

Pastoral scene

Here’s a rural scene that looks calm.  What and where is it? Send your best guess – plus hometown and name – to: feedback@statehousereport.com.  

Meanwhile, last week’s mystery – “Interesting flower” – was from out of state, but we had to share because it was so different.  It was, as several readers shared, a “red hot poker plant,” also known as a “torch lily,” spied during Thanksgiving at the University of California in Davis, Calif.

“You can find them here in Charleston at Magnolia Plantation,” West Ashley resident Shawn D. Matticks wrote, adding a similar-looking photo. 

Congratulations also to the following sleuths for identifying this plant, which comes from South Africa: Allan Peel of San Antonio, Texas; George Graf of Palmyra, Va.; Jay Altman of Columbia; and Bill Segars and Don Clark, both of Hartsville.

  • SHARE: If you have a Mystery Photo to share, please send it to us – and make sure you tell us what it is!

Send us your thoughts

Please send us your thoughts about politics and policy in South Carolina, but make sure to leave phone numbers and hometowns to help us verify them for publication.  We publish non-defamatory comments, but unless you provide your contact information – name and hometown, plus a phone number used only by us for verification – we can’t publish your views.  

  • Have a comment?  Send your letters or comments to: feedback@statehousereport.com.  Make sure to provide your contact details (name, hometown and phone number for verification.  Letters are limited to 150 words.

Statehouse Report, founded in 2001 as a weekly legislative forecast that informs readers about what is going to happen in South Carolina politics and policy, is provided by email to you at no charge every Friday.

We can use your help

We’re proud to offer Statehouse Report for free.  For more than a dozen years, we’ve been the go-to place for insightful independent policy and political news and views in the Palmetto State. And we love it as much as you do.  

But now, we can use your help.  If you’ve been thinking of contributing to Statehouse Report over the years, now would be a great time to contribute as we deal with the crisis.  In advance, thank you.

More

  • Mailing address: Send inquiries by mail to: P.O. Box 21942, Charleston, SC 29413
  • Subscriptions are free.  If you want to subscribe, send us an email:  feedback@statehousereport.com with the word “subscribe” in the subject. We hope you’ll keep receiving the great news and information from Statehouse Report, but if you need to unsubscribe, go to the bottom of the weekly email issue and follow the instructions.
  • Read our sister publication:  Charleston City Paper (every Friday in print; Every day online)
  •  © 2025, Statehouse Report, a publication of City Paper Publishing, LLC.  All rights reserved.

Help keep the City Paper free.
No paywalls.
No subscription cost.
Free delivery at 800 locations.

Help support independent journalism by donating today.

[empowerlocal_ad sponsoredarticles]