COLUMBIA - The Palmetto Public Deposits Coalition (PPDC) today announced that a growing coalition of local elected officials from across South Carolina has signed onto a joint letter urging members of the General Assembly to support the South Carolina Financial Freedom Act (H.3221 / S.60) — legislation that would allow cities, counties, school districts, and other public entities the freedom to deposit community-funded dollars in the financial institution of their choice, including qualified credit unions.
The letter reflects increasing statewide support among local leaders for modernizing South Carolina law to restore local choice, strengthen competition, and ensure public funds can be managed in ways that best serve taxpayers. Over 40 local government representatives, including county council members, mayors, municipal officials, and other local leaders representing communities across the state, signed on in support of the legislation.
The effort is also supported by the South Carolina Association of Counties and the Municipal Association of South Carolina. Their boards of directors, composed of local government officials from communities across the state, have formally voiced support for parity in public deposits, signaling that expanded financial choice would benefit the cities and counties they represent.
“Local governments should have the same financial freedom that families and businesses have — the ability to choose the financial institution that best meets their needs,” said Rick Osbon, Chairman of the Palmetto Public Deposits Coalition. “This commonsense reform will introduce healthy competition, help stretch taxpayer dollars further, and strengthen partnerships with community-focused financial institutions that are deeply invested in South Carolina.”
Under current law, public entities are required to deposit funds in commercial banks, even though credit unions are authorized to accept public deposits. Supporters say this outdated restriction limits flexibility and reduces competition in the public deposits market.
By expanding eligibility to include regulated, community-based credit unions, the Financial Freedom Act would allow local officials to pursue better rates, improved service, and more responsive financial partnerships — all while keeping more public dollars working locally.
“As mayor, I’ve seen firsthand how access to strong local financial partners can make a real difference for our community,” said Greg Habib, Mayor of Goose Creek, who signed the letter. “This legislation is about giving local leaders more tools to serve residents effectively and make responsible financial decisions.”
The Palmetto Public Deposits Coalition continues to work with municipal leaders, county officials, and stakeholders statewide to advance the Financial Freedom Act during the current legislative session.