In South Carolina, about half of the state-controlled highway system is eligible for federal highway funds.
The federal government imposes an 18¢ per gallon fuel user fee across the United States. This funding is collected in each state, sent to Washington, and returned to the states in the form of federal-aid for highways. Annually, Congress appropriates the amount of funding for each state. In South Carolina, we are extremely dependent on federal dollars. We are a donor state, which means that for every dollar that we send to Washington, we receive an allocation equal to at least 92 cents. Our Congressional delegation has been working to increase this rate of return for South Carolina. The sections below give more details on how SCDOT manages finances.