The governor says procurement should be merit- and value-based for taxpayers and argues the current race-conscious rules are unconstitutional and potentially at odds with federal funding conditions, with compliance required across the executive branch by January 9, 2026.

South Carolina Governor issues executive order 2025-40 directing state agencies to stop applying race-based contracting rules, halting the 5% minority-directed highway set-aside and the 10% annual spending with minority-owned firms for future contracts, while preserving existing contracts.

Democrats argue the move could diminish opportunities for disadvantaged groups, whereas Republicans frame it as upholding equal protection and merit-based opportunity.

The order applies only to executive branch agencies; transportation officials note no active contracts are subject to the minority-business mandate and will comply with the directive.

Supporters and opponents weigh in, highlighting the political divide: proponents call for enforcing equal protection and correcting misaligned statutes, while critics warn it could reduce opportunities for minority-owned businesses.

The report includes contributions from reporters and notes ongoing updates in this developing story.

Supporters like Alexander and Smith frame the action as restoring constitutional guarantees and ensuring laws reflect equality under the law.

In remarks from Smith and Alexander, the issue is cast as correcting laws that no longer align with constitutional guarantees and promoting merit-based opportunities.

The decision mirrors a national trend, with echoed sentiments from national figures criticizing quotas as undermining merit and unity.

The governor ties the measure to constitutional compliance and references Supreme Court precedents and other executive actions supporting merit-based contracting.

The move sits within a broader national debate on race-conscious policies, referencing recent Supreme Court actions on affirmative action and related opinions.

Political dynamics continue, with anticipated January legislative actions to repeal race-based provisions and debate over the policy's impact on the state economy.