Community roundtables show strong support for modernizing South Carolina’s public deposits law

State and local elected officials gathered in North Augusta and Greenville this month to review the South Carolina Financial Freedom Act (H.3221 / S.60), a bipartisan proposal that would finally allow cities and counties in the Palmetto State to deposit public funds in credit unions. The roundtables were hosted by the Palmetto Public Deposits Coalition (PPDC), SRP Federal Credit Union, and Spero Financial Credit Union.

The events brought together senators, representatives, county and city leaders, and local administrators to discuss how modernizing South Carolina’s 40-year-old deposit rules could improve financial outcomes for communities across the state.

“Local governments know better than anyone what their communities need,” said PPDC Chairman Rick Osbon. “Allowing them to choose the financial institution that offers the best rate and most convenient service is a direct benefit to taxpayers.”

Officials repeatedly highlighted three major benefits of the legislation:

• Higher earnings on taxpayer dollars: Even a modest increase in deposit rates could generate tens of thousands of additional dollars annually for a typical locality.
• Lower borrowing costs: Competitive loan offerings from credit unions could reduce interest expenses on major projects.
• Greater convenience and efficiency: Being able to make deposits at nearby credit union branches would reduce staff travel time and administrative costs.

Roundtable participants emphasized that these gains would allow more money to be reinvested into public safety, infrastructure, staffing, and community services — without raising taxes or fees.

The Municipal Association of South Carolina (MASC) and the South Carolina Association of Counties (SCAC) have both endorsed the Financial Freedom Act, citing clear benefits for taxpayers and local governments.

With strong local support and continued momentum following this summer’s municipal and county conferences, PPDC stressed that updating South Carolina’s deposit laws should be a top priority for the General Assembly in 2026.

PPDC will continue hosting informational events statewide ahead of the legislative session.

About the Palmetto Public Deposits Coalition

The Palmetto Public Deposits Coalition is an alliance of community leaders, credit unions, and local government associations advocating a more competitive environment for returns on taxpayer dollars to empower South Carolina communities. The coalition is committed to ensuring that public funds are managed responsibly, with the best interests of South Carolina’s communities in mind. For more information about the Palmetto Public Deposits Coalition, please visit palmettopublicdeposits.com.