Statehouse Update January 20-22

Brendan Connors

Written by
January 19, 2026

Statehouse Update January 20-22

Update 1/22/26: Adjustments were made to this summary to reflect developments that occurred during the week.

It is week two at the Statehouse and lawmakers have their hands full with tax reform in the Senate and judicial reform in the House. Members in both chambers are also looking to move on reforms to the Department of Transportation.

Taxes and spending
  • Income tax H.4216 – Establishes two new tax brackets (1.99% up to $30,000 and 5.39% for anything above), eliminates all standard and itemized deductions, adds a graduated deduction of up to $30,000 for those earning under $110,000, and conditionally lowers the top marginal tax rate by 1% until it reaches 1.99%. The Senate Finance Committee will hear this bill on Tuesday, Jan. 20 at 3pm. Update: This bill has advanced to the Senate floor.
  • Homestead exemption S.768 – Raises the homestead exemption to $100,000 and lower the qualified age to 60 years old. The Senate Finance Committee will hear this bill on Jan. 20 at 3pm. Update: The Senate Finance Committee amended the bill to set the exemption at $150,000, the minimum age at 65, and add a five-year residency requirement. This bill has advanced to the Senate floor.
  • Unemployment tax code S.688 – Increases the period for calculating an employer’s unemployment insurance rate from 12 month to 20 months by 2028. This bill also increases funding to state unemployment insurance by creating a new “solvency surcharge” tax and removing the caps on several insurance penalties. A Senate Labor, Commerce and Industry subcommittee will hear this bill on Jan. 21 at 10am.
  • Film industry handouts H.3832 – Allocates rebates amounting to 30% of an annual production budget to film producers that spend over $250,000 and heightens that budget limit to $2 million annually. This bill also heightens the cap for tax incentives from $10 million to $30 million while allowing unused portions of that cap to carry over for up to three years. The bill is on the House floor. Update: This bill was sent back to the House Ways and Means Committee.
Judicial reform
  • Judicial selection reform H.4755 – Grants the Governor the sole authority to appoint all 12 members of the Judicial Merit Selection Commission (JMSC) and prohibits members of the General Assembly from serving on the committee. Former members of the General Assembly must wait two years before serving on the JMSC. Eight members must also be members of the SC Bar in good standing, and no more than four members can be law enforcement professionals. A House Judiciary subcommittee will hear this bill on Jan. 22 at 9am. Update: This bill has advanced to the full House Judiciary Committee.
Education
  • School board ethics S.70 – Requires local school boards to adopt a code of ethics and training programs created by the State Board of Education. A Senate Education subcommittee will hear this bill on Jan. 21 at 10am.
Regulation
  • Small business regulatory freedom H.3021 – For every new regulation introduced, two existing regulations must be removed, allowing challenges to existing regulations in court, and introducing expiration dates for regulations. A Senate Judiciary subcommittee will hear this bill upon the call of the Chair on Jan. 22.
DOT Modernization

A House Department of Transportation (DOT) Modernization Ad Hoc Committee met twice last week to work on a bill reforming the DOT. Some of the reforms include:

  • The 7-member DOT Commission will no longer have at-large seats, with one representative for each congressional district. These reforms are instead of removing the Commission, which shares leadership responsibilities with the Transportation Secretary.
  • Members of a county transportation council (CTC) must live in the county whose CTC they serve on.
  • Create a new coordinating council to help streamline DOT projects.

The DOT Modernization Committee is looking to finalize a House bill this week, while a Senate Transportation subcommittee is scheduled to meet on Jan. 22 at 9am to discuss their own proposal pending introduction. Specific details of the Senate bill will be made available once it is introduced.

Budget Hearings

Last week, Gov. McMaster published his fiscal year 2027 Executive Budget. Click here for the full Policy Council breakdown.

The following House budget subcommittees meet this week:

Criminal Justice Subcommittee

  • Tuesday, Jan. 20 one hour after House adjournment; hearing from the Ethics Commission, Commission on Indigent Defense, Prosecution Coordination Commission, and Department of Natural Resources.
  • Wednesday, Jan. 21 at 10am; hearing from the Attorney General, the Department of Probation, Parole & Pardon, Department of Juvenile Justice, and Department of Corrections.

Constitutional Subcommittee

  • Tuesday, Jan. 20 two hours after House adjournment; hearing from the Public Employee Benefit Authority and Retirement System Investment Commission.
  • Wednesday, Jan. 21 at 10am; hearing from the State Treasurer, Procurement Review Panel, and Patriot’s Point Development Authority.

Economic Development Subcommittee

  • Wednesday, Jan. 21 at 11am; hearing from SC State Public Service & Agriculture and the Sea Grant Consortium.

Healthcare Subcommittee

  • Tuesday, Jan. 20 one hour after House adjournment; hearing from MUSC Hospital Authority and the Area Health Education Consortium.
  • Wednesday, Jan. 21 at 10am; hearing from the Department of Behavioral Health and Developmental Disabilities.

Higher Education Subcommittee

  • Tuesday, Jan. 20 at 10:30am; hearing from SC State and MUSC.
  • Tuesday, Jan. 20 at 2:30pm; hearing from Coastal Carolina University, Tuition Grants, and the Commission on Higher Education.
  • Wednesday, Jan. 21 at 9:30am; hearing from SC Technical College System, Lottery Commission, the Citadel, and College of Charleston.
  • Thursday, Jan. 22 at 12:30pm; hearing from Clemson University, Francis Marion University, Winthrop University, and Lander University.

Public Education Subcommittee

  • Tuesday, Jan. 20 immediately after House adjournment; hearing from the Gov. School for Arts & Humanities, Gov. School for Science & Math, Gov. School for Agriculture at John De La Howe, and the State Library.
  • Wednesday, Jan. 21 at 10am; hearing from the School for the Deaf & Blind, Education Television, and the Confederate Relic Room & Military Museum.

Transportation & Regulatory Subcommittee

  • Tuesday, Jan. 20 one and a half hours after House adjournment; hearing from the SC Transportation Infrastructure Bank and the Aeronautics Commission.
  • Wednesday, Jan. 21 at 10am; hearing from the Department of Insurance, Department of Labor, Licensing, & Regulation, and Department of Transportation.
  • Thursday, Jan. 22 at 9am; hearing from the State Accident Fund, Public Service Commission, Office of Regulatory Staff, and Worker’s Compensation Commission.