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South Carolina's Department of Behavioral Health and Developmental Disabilities eliminated 248 positions as part of a reorganization, resulting in 47 layoffs. The department was created in 2025 to consolidate mental health and developmental disabilities services. The restructuring affects state agency capacity to oversee behavioral health and developmental disabilities services, including programs delivered through Medicaid managed care organizations. The changes take effect immediately as part of the department's operational consolidation.
South Carolina enacted legislation taxing vapes with revenue directed to Medicaid to compensate for declining cigarette tax collections. The law takes effect in October 2026. Governor Henry McMaster signed the measure two weeks ago. The legislation addresses a budget gap facing South Carolina Medicaid as smoking rates decline and traditional tobacco tax revenue decreases, while simultaneously reducing taxes on electronic cigarettes that contain tobacco.
Three Democratic candidates for South Carolina governor—State Rep. Jermaine Johnson, attorney Mullins McLeod, and businessman Billy Webster—voiced support for Medicaid expansion during a June 3, 2026 debate focused on affordability. All three candidates agreed South Carolina should expand Medicaid eligibility under the Affordable Care Act. The candidates also expressed support for legalizing medical marijuana. South Carolina remains one of ten states that have not expanded Medicaid, leaving an estimated 230,000 low-income adults without coverage.
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