Republican Governor Henry McMaster of South Carolina has signed an executive order directing state agencies to stop using race-based quotas and set‑asides in future state contracts. He called the existing minority contracting requirements unconstitutional and urged lawmakers to repeal them when they return to Columbia in January, a move also backed by Senate President Thomas Alexander and House Speaker Murrell Smith.
South Carolina Gov. Henry McMaster on Wednesday issued an executive order instructing state agencies and state universities to cease using race‑based quotas or set‑asides when awarding future contracts, effectively telling them not to follow portions of existing state procurement law while those provisions are under review.
According to the governor’s office and multiple local news outlets, the order directs agencies "to no longer execute spending, procurement, or contract awards" based on race‑based quotas or set‑asides that are currently required by state law.
Under current South Carolina law, the Department of Transportation is required to award a minimum of 5% of certain highway and infrastructure fund contracts each year to minority businesses. A separate statute requires each state agency to develop and submit a utilization plan showing that 10% of its total controllable annual budget is spent through minority‑owned businesses.
In a statement and in a post on X, McMaster said: "Today, I have ordered state agencies to halt all future spending, procurement or contract decisions that are based on race. The state laws requiring these quotas and racial set‑asides are unconstitutional and discriminatory. Business with state government should be awarded based on merit and value to the taxpayer." He also argued that "nowhere should any person be treated differently because of their race" and that "state government spending and procurements should be awarded based on merit and value to the taxpayer, not on set‑asides or quotas." The executive order specifies that it applies prospectively and does not cancel existing contracts.
McMaster’s office has said the move is intended to bring state procurement practices in line with recent U.S. Supreme Court guidance that race‑based programs "must comply with strict scrutiny" and, at some point, must end. The governor has also cited President Donald Trump’s 2025 executive order "Ending Illegal Discrimination and Restoring Merit‑Based Opportunity," which directs federal agencies to end diversity, equity and inclusion programs and criticizes race‑based quotas as undermining traditional American values of hard work and individual achievement.
Senate President Thomas Alexander and House Speaker Murrell Smith, both Republicans, have publicly supported McMaster’s action and are working with him to introduce legislation to repeal the minority‑contracting provisions when the General Assembly reconvenes next month. "We are a nation and a state dedicated to the principle that ‘all men are created equal, endowed by their Creator,’ as reflected in the Constitution’s requirement of equal protection of the laws," Alexander said in a statement released by the governor’s office. "When existing laws no longer align with that constitutional command, it is our duty to correct them. 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."
The order is part of a broader national push by the Trump administration and Republican officials against diversity, equity and inclusion initiatives in government and contracting. Earlier this year, Trump signed Executive Order 14173, which restricts DEI‑related requirements in federal contracting. His administration has also moved in court to curtail a long‑standing federal transportation program that directs a share of infrastructure funds to minority‑ and women‑owned firms.
Conservative lawmakers and activists in South Carolina have praised McMaster’s order as a step toward what they describe as race‑neutral, merit‑based contracting. Supporters argue that contracts should no longer be steered by race‑based targets but awarded solely on qualifications and cost. Critics, including Democratic legislators and advocates for minority‑owned businesses, contend that dismantling the state’s minority‑business requirements risks eroding opportunities created to counteract decades of discrimination. Debate over the order and the proposed repeal legislation is expected to continue when lawmakers return to Columbia in January.
