US EditionMcMaster orders South Carolina agencies to halt use of race in contracting decisions
Gov. McMaster says race- and sex-based contracting incentivizes discrimination and risks federal funding; only about 5% of discretionary state contracts went to minority-owned firms, officials said.
- On Dec. 3, 2025, South Carolina Governor Henry McMaster issued an executive order directing state executive agencies to stop using race or sex in future contracts while pausing standards without canceling existing agreements.
- Citing recent rulings and federal policy, the governor said longstanding set-asides rest on a 'false assumption' and warned noncompliance could jeopardize federal funding.
- State data show only about five percent of agencies' discretionary spending went to certified minority contractors last fiscal year, with 750 certified contractors as of Aug. 5 and about 70 percent Black-owned; the South Carolina Department of Transportation requires at least 5% on highway spending.
- Transportation Secretary Justin Powell said the Department of Transportation will comply immediately, and House Speaker Murrell Smith and Senate President Thomas Alexander will draft legislation in the 2026 legislative session beginning next month.
- Critics and minority-business leaders warn the order could hinder small firms and remove hope, noting no performance metrics exist and recalling earlier DEI rollbacks that fizzled amid federal funding concerns and the South Carolina Minority Business Development Agency's defunding this year.
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Red State Governor Ends Race-Based Contracting, Calls For Lawmakers To Make Move Permanent - Real News Now
Republican Governor Henry McMaster moved to end race-based government contracting in South Carolina and called for lawmakers to take action to codify his executive actions. McMaster signed an executive order on Wednesday calling for state agencies to stop awarding contracts based on race. Under current state law, each state agency is required to propose a budget that awards 10% of spending to minority-owned businesses. “Today, I have ordered sta…
Red State Governor Ends Race-Based Contracting, Calls For Lawmakers To Make Move Permanent
Republican Governor Henry McMaster moved to end race-based government contracting in South Carolina and called for lawmakers to take action to codify his executive actions. McMaster signed an executive order on Wednesday calling for state agencies to stop awarding contracts based on race. Under current state law, each state agency is required to propose a budget that awards 10% of spending to minority-owned businesses. “Today, I have ordered s…
SC Gov. Henry McMaster calls for end of race and sex considerations in awarding state contracts
South Carolina will no longer use race as a criteria in awarding money to minority-owned businesses through state contracts. Black business owners will likely be most impacted by the decision.
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